2015 (1) TMI 311

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....of overseas agencies commission paid to non-residents without deduction of tax at source. 2. Departmental Representative submits that an identical issue has come up in assessee's case for the assessment year 2004-05 in ITA No. 292/Mds/2012 dated 3.5.2012 and in ITA No.106/Mds/2009 dated 11.6.2010, wherein the Tribunal held that services rendered by overseas agents are in the nature of fees for technical services and come under the purview of Explanation 2 to section 9(1)(vii) of the Act. Departmental Representative submits that during this assessment year also one of the overseas agents namely James Druchas, USA is the same agent in the assessment year 2004-05 and also in the current assessment year. This Tribunal for the assessment ....

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....ly to identify new business opportunities outside India and it is only sales commission paid for marketing done by the overseas agents outside India and not for any technical services provided by the overseas as was done by him in earlier years. He submits that during this assessment year scope of the agreement was very limited as compared to the earlier agreement and it is only mere procurement of products approved and in earlier years the scope of agreement was much more wider and therefore this Tribunal in earlier years held that M/s. James Druchas, USA has provided technical services outside India. 4. Counsel for the assessee places reliance on the decision of this Tribunal in the case of Farida Shores P.Ltd. wherein this Tribunal he....