https://www.taxtmi.com/caselaws?id=341012 Section 195 withholding was not attracted on remittances to a foreign parent for seconded employees because the payments were salary-related reimbursements, and the underlying income had already been taxed in India as salary. The existence of a service permanent establishment did not alter the result, as the receipts were matched by corresponding salary reimbursement expenditure and no taxable profit was shown. The fees for technical services characterisation also failed because the treaty test of making available technical knowledge, skill, know-how or processes was not satisfied. Accordingly, no tax deduction obligation arose and the consequent demand could not stand. en-us Tue, 28 Mar 2017 00:00:00 +0530 Fri, 31 Mar 2017 05:08:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=341012 Section 195 withholding was not attracted on remittances to a foreign parent for seconded employees because the payments were salary-related reimbursements, and the underlying income had already been taxed in India as salary. The existence of a service permanent establishment did not alter the result, as the receipts were matched by corresponding salary reimbursement expenditure and no taxable profit was shown. The fees for technical services characterisation also failed because the treaty test of making available technical knowledge, skill, know-how or processes was not satisfied. Accordingly, no tax deduction obligation arose and the consequent demand could not stand. Case-Laws Income Tax Tue, 28 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=341012