https://www.taxtmi.com/caselaws?id=69151 Sales commission paid to a non-resident foreign agent for services performed outside India was not chargeable to tax in India where no part of the income arose or accrued in India and no operations were carried out in India attributable to the commission. On that basis, no tax was deductible at source under section 195 because the deduction obligation arises only when the sum is chargeable under the Act. The discussion also notes that section 195(2) applies to apportionment where only part of a payment is chargeable, and does not govern a case of complete non-chargeability. Accordingly, disallowance under section 40(a)(i) would not be sustainable in such circumstances. en-us Thu, 17 May 2001 00:00:00 +0530 Tue, 05 Apr 2011 14:16:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69151 Sales commission paid to a non-resident foreign agent for services performed outside India was not chargeable to tax in India where no part of the income arose or accrued in India and no operations were carried out in India attributable to the commission. On that basis, no tax was deductible at source under section 195 because the deduction obligation arises only when the sum is chargeable under the Act. The discussion also notes that section 195(2) applies to apportionment where only part of a payment is chargeable, and does not govern a case of complete non-chargeability. Accordingly, disallowance under section 40(a)(i) would not be sustainable in such circumstances. Case-Laws Income Tax Thu, 17 May 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69151