https://www.taxtmi.com/caselaws?id=448676 The ITAT Ahmedabad ruled in favor of the assessee regarding TDS u/s 195 and addition u/s 40(a)(i) for sales commission expenses paid to foreign agents. The tribunal found that foreign agents rendered services entirely outside India for procuring export orders, with no place of business in India. Documentary evidence including certificates, invoices, and export records proved services were performed outside India. Relying on Toshoku Ltd. SC precedent, the tribunal held that commission income earned by foreign agents for services rendered outside India cannot be deemed to have incurred or arisen in India, thus not taxable in India. Consequently, no TDS liability existed and disallowances were unjustified. en-us Wed, 24 Jan 2024 00:00:00 +0530 Thu, 25 Jan 2024 15:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448676 The ITAT Ahmedabad ruled in favor of the assessee regarding TDS u/s 195 and addition u/s 40(a)(i) for sales commission expenses paid to foreign agents. The tribunal found that foreign agents rendered services entirely outside India for procuring export orders, with no place of business in India. Documentary evidence including certificates, invoices, and export records proved services were performed outside India. Relying on Toshoku Ltd. SC precedent, the tribunal held that commission income earned by foreign agents for services rendered outside India cannot be deemed to have incurred or arisen in India, thus not taxable in India. Consequently, no TDS liability existed and disallowances were unjustified. Case-Laws Income Tax Wed, 24 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448676