https://www.taxtmi.com/caselaws?id=465599 Payments by the assessee to non-resident group entities for professional services were examined for withholding under s.195 and consequent disallowance under s.40(a)(i). The Tribunal held that the services were not "fees for technical services/royalty" under the relevant DTAAs because no technical knowledge was "made available", and in certain cases the receipts were taxable, if at all, as "independent personal services/other income" but remained non-taxable in India in the absence of a PE; accordingly, s.195 was not attracted and disallowance under s.40(a)(i) was deleted. Separately, remittances as membership fees to a Swiss cooperative were held covered by the principle of mutuality due to complete identity between contributors and participators and absence of profit motive; hence no TDS or disallowance arose, and the Revenue's appeal was dismissed. en-us Wed, 15 Jun 2022 00:00:00 +0530 Fri, 02 Jan 2026 07:07:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465599 Payments by the assessee to non-resident group entities for professional services were examined for withholding under s.195 and consequent disallowance under s.40(a)(i). The Tribunal held that the services were not "fees for technical services/royalty" under the relevant DTAAs because no technical knowledge was "made available", and in certain cases the receipts were taxable, if at all, as "independent personal services/other income" but remained non-taxable in India in the absence of a PE; accordingly, s.195 was not attracted and disallowance under s.40(a)(i) was deleted. Separately, remittances as membership fees to a Swiss cooperative were held covered by the principle of mutuality due to complete identity between contributors and participators and absence of profit motive; hence no TDS or disallowance arose, and the Revenue's appeal was dismissed. Case-Laws Income Tax Wed, 15 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465599