2006 (11) TMI 107

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....ollaboration between Eli Lilly, Netherlands B.V. and Ranbaxy Laboratories Limited, engaged the services of four expatriates in India. These four employees seconded by Eli Lilly, Netherlands B.V. were receiving salaries from the respondent in India and, admittedly, additionally from Eli Lilly outside India. So far as the salary paid by the respondent is concerned it had deducted tax at source (TDS)....

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....duty-bound to deduct TDS not only in respect of the salaries payable by it to the said executives, but also in respect of salaries receivable by these executives from the collaborating company, viz., Eli Lilly, Netherlands B.V. 3 In CIT v. Tej Quebecor Printing Ltd. [2006] 281 ITR 170 the Division Bench of this court has opined that (headnote) "the person making the payment can or is required t....

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.... four employees outside India, the vital incidence of the payment of the salaries to them abroad had not actually been made by the respondent-company. The question raised on behalf of the Revenue is, therefore, squarely covered by Tej Quebecor Printing Ltd. [2006] 281 FIR 170 (Delhi). 5 In CIT v. Sencma SA, France [2006] 288 ITR 76 (Delhi); [2006] 156 Taxman 403 another Bench of this court had ....

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....so whilst tax cannot be recovered twice, i.e., from the individual as well as the company, nevertheless interest could be recoverable from the respondent-company. We are unable to agree with this submission since it pre supposes that an infraction of the law has been committed by the respondent in not deducting tax at source. This argument has already been rejected by us. There is, therefore, no j....