https://www.taxtmi.com/caselaws?id=754261 ITAT Chennai ruled on multiple tax issues for a dredging company. The tribunal held that bare-boat charter hire payments to Belgium companies are not subject to TDS under section 195, as such payments fall outside the scope of royalty under the India-Belgium DTAA, following precedent from Madras HC. For transfer pricing, the tribunal accepted the assessee's CUP method for benchmarking charter hire payments to associated enterprises, rejecting the TPO's entity-level TNMM approach and deleting the Rs. 23.46 crore adjustment, citing consistency with Mumbai ITAT decision. However, the tribunal upheld the TPO's adjustment regarding technical services payment calculation based on project turnover. The AO was directed to verify and allow TDS credits as per law. en-us Mon, 06 May 2024 00:00:00 +0530 Thu, 20 Jun 2024 08:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754261 ITAT Chennai ruled on multiple tax issues for a dredging company. The tribunal held that bare-boat charter hire payments to Belgium companies are not subject to TDS under section 195, as such payments fall outside the scope of royalty under the India-Belgium DTAA, following precedent from Madras HC. For transfer pricing, the tribunal accepted the assessee's CUP method for benchmarking charter hire payments to associated enterprises, rejecting the TPO's entity-level TNMM approach and deleting the Rs. 23.46 crore adjustment, citing consistency with Mumbai ITAT decision. However, the tribunal upheld the TPO's adjustment regarding technical services payment calculation based on project turnover. The AO was directed to verify and allow TDS credits as per law. Case-Laws Income Tax Mon, 06 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754261