https://www.taxtmi.com/caselaws?id=337973 Payments to a foreign consultant were not taxable in India under the India-USA treaty, which applied where more beneficial than domestic law. Whether characterised as dependent or independent personal services, the recipient's period of stay remained within the relevant treaty limit; for independent services, arrival and departure days were excluded from the computation. As the payment was not chargeable to tax in India, no tax deduction obligation arose. Consequently, disallowance for non-deduction of tax under section 40(a)(ia) was unsustainable, and the addition was deleted. en-us Fri, 16 Dec 2016 00:00:00 +0530 Mon, 03 Apr 2017 10:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=337973 Payments to a foreign consultant were not taxable in India under the India-USA treaty, which applied where more beneficial than domestic law. Whether characterised as dependent or independent personal services, the recipient's period of stay remained within the relevant treaty limit; for independent services, arrival and departure days were excluded from the computation. As the payment was not chargeable to tax in India, no tax deduction obligation arose. Consequently, disallowance for non-deduction of tax under section 40(a)(ia) was unsustainable, and the addition was deleted. Case-Laws Income Tax Fri, 16 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=337973