https://www.taxtmi.com/caselaws?id=337973 Under the India-USA DTAA, payment to a foreign consultant was treated as not taxable in India because the relevant treaty conditions were not met on the facts, including the computation of stay in India. As the underlying income was not chargeable to tax, no obligation to deduct tax at source arose, and the disallowance under section 40(a)(ia) could not be sustained. The resulting addition was deleted in favour of the assessee. The article states the operative principle that treaty protection prevails where more beneficial, and that a non-taxable payment cannot trigger TDS disallowance. 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 Under the India-USA DTAA, payment to a foreign consultant was treated as not taxable in India because the relevant treaty conditions were not met on the facts, including the computation of stay in India. As the underlying income was not chargeable to tax, no obligation to deduct tax at source arose, and the disallowance under section 40(a)(ia) could not be sustained. The resulting addition was deleted in favour of the assessee. The article states the operative principle that treaty protection prevails where more beneficial, and that a non-taxable payment cannot trigger TDS disallowance. Case-Laws Income Tax Fri, 16 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=337973