https://www.taxtmi.com/caselaws?id=465597 Disallowance under s.40(a)(i) turned on whether cross-border payments by a professional firm to foreign associates were chargeable to tax in India, requiring TDS. For US/UK recipients, the "make available" condition for FTS was not met and, absent PE/fixed base in India, receipts were treated as independent personal services under the applicable DTAA; hence no taxability in India and no s.40(a)(i) disallowance. For Singapore/Belgium recipients, services rendered outside India were held not to be FTS under the relevant DTAA and instead business profits under Article 7; with no PE in India, s.40(a)(i) was inapplicable. For Mauritius/Egypt/UAE/Sri Lanka/Malaysia recipients, treaties lacked an FTS article or services were not managerial/technical; payments were treated as independent personal services with no fixed base, so no TDS and no disallowance. Payment to the Swiss cooperative was protected by the principle of mutuality; Revenue's appeal was dismissed. en-us Wed, 05 Dec 2018 00:00:00 +0530 Thu, 01 Jan 2026 14:16:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465597 Disallowance under s.40(a)(i) turned on whether cross-border payments by a professional firm to foreign associates were chargeable to tax in India, requiring TDS. For US/UK recipients, the "make available" condition for FTS was not met and, absent PE/fixed base in India, receipts were treated as independent personal services under the applicable DTAA; hence no taxability in India and no s.40(a)(i) disallowance. For Singapore/Belgium recipients, services rendered outside India were held not to be FTS under the relevant DTAA and instead business profits under Article 7; with no PE in India, s.40(a)(i) was inapplicable. For Mauritius/Egypt/UAE/Sri Lanka/Malaysia recipients, treaties lacked an FTS article or services were not managerial/technical; payments were treated as independent personal services with no fixed base, so no TDS and no disallowance. Payment to the Swiss cooperative was protected by the principle of mutuality; Revenue's appeal was dismissed. Case-Laws Income Tax Wed, 05 Dec 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465597