https://www.taxtmi.com/caselaws?id=187057 Foreign agency commission paid to a non-resident for services wholly rendered outside India was held not to be income deemed to accrue or arise in India and therefore not chargeable to tax in India. As no tax was deductible at source on a sum not so chargeable, section 195 did not apply. Since deduction under section 40(a)(i) depends on tax being deductible, disallowance could not be made. The CBDT circulars on foreign agents and export commission supported this position, and Transmission Corporation was distinguished because it concerned sums that were at least partly chargeable to tax. en-us Fri, 06 Mar 2009 00:00:00 +0530 Fri, 07 Oct 2016 16:41:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=187057 Foreign agency commission paid to a non-resident for services wholly rendered outside India was held not to be income deemed to accrue or arise in India and therefore not chargeable to tax in India. As no tax was deductible at source on a sum not so chargeable, section 195 did not apply. Since deduction under section 40(a)(i) depends on tax being deductible, disallowance could not be made. The CBDT circulars on foreign agents and export commission supported this position, and Transmission Corporation was distinguished because it concerned sums that were at least partly chargeable to tax. Case-Laws Income Tax Fri, 06 Mar 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=187057