https://www.taxtmi.com/caselaws?id=415941 Commission paid to foreign selling agents for procuring export orders was held not to be fees for technical or managerial services where the agents merely performed ordinary sales-intermediary functions, had no permanent establishment in India, and the income was taxable, if at all, only in the country of residence under the relevant DTAA; accordingly, no tax was required to be deducted under section 195 and disallowance under section 40(a)(i) was not justified. By contrast, the claim that software purchase expenditure in AY 2010-11 was revenue in nature failed because the assessee did not produce sufficient details of the software or its functional character, so the treatment of the expenditure as capital with depreciation was not shown to be erroneous. en-us Tue, 07 Dec 2021 00:00:00 +0530 Fri, 17 Dec 2021 08:53:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=415941 Commission paid to foreign selling agents for procuring export orders was held not to be fees for technical or managerial services where the agents merely performed ordinary sales-intermediary functions, had no permanent establishment in India, and the income was taxable, if at all, only in the country of residence under the relevant DTAA; accordingly, no tax was required to be deducted under section 195 and disallowance under section 40(a)(i) was not justified. By contrast, the claim that software purchase expenditure in AY 2010-11 was revenue in nature failed because the assessee did not produce sufficient details of the software or its functional character, so the treatment of the expenditure as capital with depreciation was not shown to be erroneous. Case-Laws Income Tax Tue, 07 Dec 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=415941