https://www.taxtmi.com/caselaws?id=361269 Commission paid to a USA-based non-resident for export representation services rendered outside India was not shown to contain income chargeable to tax in India. As no services were rendered in India and the recipient had no permanent establishment in India, its business profits were taxable only in the State of residence under Article 7 of the Indo-USA DTAA. Section 195 of the Income-tax Act applies only where the remittance includes taxable income in India, so no tax deduction obligation arose. On that basis, disallowance under section 40(a)(i) was unsustainable and the additions were deleted. en-us Thu, 31 May 2018 00:00:00 +0530 Sat, 02 Jun 2018 14:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=361269 Commission paid to a USA-based non-resident for export representation services rendered outside India was not shown to contain income chargeable to tax in India. As no services were rendered in India and the recipient had no permanent establishment in India, its business profits were taxable only in the State of residence under Article 7 of the Indo-USA DTAA. Section 195 of the Income-tax Act applies only where the remittance includes taxable income in India, so no tax deduction obligation arose. On that basis, disallowance under section 40(a)(i) was unsustainable and the additions were deleted. Case-Laws Income Tax Thu, 31 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=361269