https://www.taxtmi.com/caselaws?id=76229 The HC held that the payer was not required to deduct tax under s.195(1) on mobilization/demobilization reimbursements to the foreign contractor because the recipient's return was accepted and it was treated as not liable to tax in India; consequently s.40(a)(i) did not apply presently. The court noted the Indo-Netherlands DTAA/non-discrimination arguments but accepted the tax authorities' present acceptance of non-liability. If a higher authority subsequently holds the recipient taxable, the payer may be treated as an assessee in default and attract consequences under s.40(a)(i). en-us Mon, 15 Mar 2010 00:00:00 +0530 Sat, 30 Aug 2025 13:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=76229 The HC held that the payer was not required to deduct tax under s.195(1) on mobilization/demobilization reimbursements to the foreign contractor because the recipient's return was accepted and it was treated as not liable to tax in India; consequently s.40(a)(i) did not apply presently. The court noted the Indo-Netherlands DTAA/non-discrimination arguments but accepted the tax authorities' present acceptance of non-liability. If a higher authority subsequently holds the recipient taxable, the payer may be treated as an assessee in default and attract consequences under s.40(a)(i). Case-Laws Income Tax Mon, 15 Mar 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=76229