https://www.taxtmi.com/caselaws?id=272277 Professional fees paid by an assessee's US branch to US entities for services used wholly in the USA were not chargeable to tax in India because the payments fell outside the deeming fiction in section 9(1)(vii). As only sums chargeable under the Act attract withholding under section 195, no tax was deductible at source on those payments. Article 7 of the Indo-US DTAA also supported this result, since the relevant business profits were attributable to activities in the USA and not to any permanent establishment in India. On that basis, disallowance under section 40(a)(i) was unsustainable and was deleted. en-us Fri, 22 Jan 2016 00:00:00 +0530 Thu, 03 Mar 2016 11:14:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272277 Professional fees paid by an assessee's US branch to US entities for services used wholly in the USA were not chargeable to tax in India because the payments fell outside the deeming fiction in section 9(1)(vii). As only sums chargeable under the Act attract withholding under section 195, no tax was deductible at source on those payments. Article 7 of the Indo-US DTAA also supported this result, since the relevant business profits were attributable to activities in the USA and not to any permanent establishment in India. On that basis, disallowance under section 40(a)(i) was unsustainable and was deleted. Case-Laws Income Tax Fri, 22 Jan 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272277