https://www.taxtmi.com/caselaws?id=369987 Where an India-UK tax treaty fixes only the rate of tax on fees for technical services and does not provide a separate computation mechanism, the taxable income must be determined under the Income-tax Act. If the payer assumes the non-resident's tax liability, Section 195A requires the contractual payment to be grossed up so that tax deduction yields the agreed net amount. In the absence of an exemption comparable to Section 10(6A), the tax borne by the payer forms part of the recipient's income. The grossing-up principle therefore applies to tax deduction at source on the non-resident payment. en-us Mon, 22 Oct 2018 00:00:00 +0530 Tue, 06 Nov 2018 13:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=369987 Where an India-UK tax treaty fixes only the rate of tax on fees for technical services and does not provide a separate computation mechanism, the taxable income must be determined under the Income-tax Act. If the payer assumes the non-resident's tax liability, Section 195A requires the contractual payment to be grossed up so that tax deduction yields the agreed net amount. In the absence of an exemption comparable to Section 10(6A), the tax borne by the payer forms part of the recipient's income. The grossing-up principle therefore applies to tax deduction at source on the non-resident payment. Case-Laws Income Tax Mon, 22 Oct 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=369987