https://www.taxtmi.com/caselaws?id=413158 Disallowance under section 40(a)(i) for non-deduction of tax at source on payment to a Mauritius resident for market survey services was held unsustainable. The India-Mauritius DTAA contained no specific fees for technical services article, so the payment fell to be examined under the treaty's residuary business profits framework; as the recipient had no permanent establishment in India, the amount was not taxable as business profits under the treaty. The obligation to deduct tax was also tested against the law existing when the payment was made, and a later retrospective amendment could not create a withholding liability that was not possible to comply with at that time. The addition was deleted. en-us Fri, 24 Sep 2021 00:00:00 +0530 Tue, 05 Oct 2021 12:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=413158 Disallowance under section 40(a)(i) for non-deduction of tax at source on payment to a Mauritius resident for market survey services was held unsustainable. The India-Mauritius DTAA contained no specific fees for technical services article, so the payment fell to be examined under the treaty's residuary business profits framework; as the recipient had no permanent establishment in India, the amount was not taxable as business profits under the treaty. The obligation to deduct tax was also tested against the law existing when the payment was made, and a later retrospective amendment could not create a withholding liability that was not possible to comply with at that time. The addition was deleted. Case-Laws Income Tax Fri, 24 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=413158