https://www.taxtmi.com/caselaws?id=32086 Royalties and fees payable to non-resident companies were taxable in India under the Act, as treaty Article 12 did not shift chargeability to a cash or receipt basis and the word "paid" did not control the stage of taxation. Section 90(2) operated only to the extent the treaty was more beneficial, while section 195(1) required deduction of tax when the payer credited the amount to the payee's account or made payment, whichever was earlier. The payer's withholding obligation was separate from the recipient's stage of taxability, so tax had to be deducted on book credit. en-us Thu, 22 Apr 2004 00:00:00 +0530 Thu, 15 Jan 2009 17:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=32086 Royalties and fees payable to non-resident companies were taxable in India under the Act, as treaty Article 12 did not shift chargeability to a cash or receipt basis and the word "paid" did not control the stage of taxation. Section 90(2) operated only to the extent the treaty was more beneficial, while section 195(1) required deduction of tax when the payer credited the amount to the payee's account or made payment, whichever was earlier. The payer's withholding obligation was separate from the recipient's stage of taxability, so tax had to be deducted on book credit. Case-Laws Income Tax Thu, 22 Apr 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=32086