https://www.taxtmi.com/caselaws?id=203270 Commission paid to a non-resident marketing agent for services performed outside India does not create a business connection or permanent establishment in India; therefore, under the facts the commission cannot be deemed to accrue or arise in India and is not includible in the non-resident's taxable income in India. Consequently, the payer's obligation to deduct tax at source arises only if the remitted sum is chargeable to tax in India; absent assessability in India, no TDS under section 195 is triggered. The summary follows ITAT New Delhi reasoning and relevant Supreme Court precedents. en-us Mon, 28 Feb 2011 00:00:00 +0530 Thu, 05 Feb 2026 16:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=203270 Commission paid to a non-resident marketing agent for services performed outside India does not create a business connection or permanent establishment in India; therefore, under the facts the commission cannot be deemed to accrue or arise in India and is not includible in the non-resident's taxable income in India. Consequently, the payer's obligation to deduct tax at source arises only if the remitted sum is chargeable to tax in India; absent assessability in India, no TDS under section 195 is triggered. The summary follows ITAT New Delhi reasoning and relevant Supreme Court precedents. Case-Laws Income Tax Mon, 28 Feb 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=203270