https://www.taxtmi.com/caselaws?id=183867 Payments for transponder hire charges and unlinking services were examined under the Income-tax Act and the India-UK treaty. The consideration was treated as business profits of the non-resident recipient, which had no permanent establishment in India, so it was taxable only in the State of residence under Article 7. It was also found not to constitute royalty or fees for technical services under section 9. Because the treaty position was more beneficial, section 195 withholding was not required and disallowance under section 40(a)(i) could not be made for non-deduction of tax. The assessee was therefore not liable to deduct tax at source on the impugned payments. en-us Tue, 30 Oct 2001 00:00:00 +0530 Thu, 23 Jun 2016 17:12:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183867 Payments for transponder hire charges and unlinking services were examined under the Income-tax Act and the India-UK treaty. The consideration was treated as business profits of the non-resident recipient, which had no permanent establishment in India, so it was taxable only in the State of residence under Article 7. It was also found not to constitute royalty or fees for technical services under section 9. Because the treaty position was more beneficial, section 195 withholding was not required and disallowance under section 40(a)(i) could not be made for non-deduction of tax. The assessee was therefore not liable to deduct tax at source on the impugned payments. Case-Laws Income Tax Tue, 30 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183867