Points considered in case of Indian agents of foreign suppliers.

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....are procured by the Supply Department. They have observed that there is a tendency on the part of the foreign suppliers and also their Indian agents to avoid disclosing the commission with a view to evading payment of proper taxes and with the object of accumulating foreign exchange abroad in violation of the Foreign Exchange Regulations Act. They have commented that most likely many of the Indian....

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....itects etc. 4. While making assessments in the case of the Indian agents of foreign suppliers, the following points inter alia should be kept in view:- (i) The Income-tax Officer should carefully scrutinise the contract between the foreign principal and the Indian agent with a view to ascertaining complete particulars regarding the Indian agents, the remuneration payable, the services to be rend....

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....admissible expenses. (iv) In respect of countries with which India has tax treaties containing a provision for exchange of information for prevention/detection of tax evasion, it may be possible to request the foreign country in suitable cases to supply inter alia the relevant information Income-tax Officers are advised to make a reference to the Board through their respective Commissioners of In....