https://www.taxtmi.com/caselaws?id=59518 Legal consultancy fees paid to a UK firm were treated as professional services under the India-UK DTAA. The special treaty provision for professional services prevailed over the more general article covering managerial, technical or consultancy services, and its wording was not limited to individuals but extended to a resident of a contracting state. On the facts, the conditions for taxing the payment in India under that treaty article were not satisfied, so the payment was not chargeable to tax in India. As no income was chargeable under the treaty, no obligation to deduct tax at source arose under section 195, and grossing up under section 195A was also unwarranted. en-us Fri, 29 Aug 2003 00:00:00 +0530 Tue, 09 Jul 2024 15:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59518 Legal consultancy fees paid to a UK firm were treated as professional services under the India-UK DTAA. The special treaty provision for professional services prevailed over the more general article covering managerial, technical or consultancy services, and its wording was not limited to individuals but extended to a resident of a contracting state. On the facts, the conditions for taxing the payment in India under that treaty article were not satisfied, so the payment was not chargeable to tax in India. As no income was chargeable under the treaty, no obligation to deduct tax at source arose under section 195, and grossing up under section 195A was also unwarranted. Case-Laws Income Tax Fri, 29 Aug 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59518