TaxTMI 
TaxTMI 
2019 (4) TMI 664
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.... this case, the Assessing Officer noticed, inter-alia, that the assessee has made remittances of Rs.15,48,340/- to a non-resident abroad without deducting TDS. The AO considered the assesseee's explanations and other material and held, inter alia, that the impugned remittance is technical assistances fees for providing technical support, training and accompanying activities. Further, the AO noticed that the assessee has paid salary reimbursement to foreign nationals taken on secondment from the group company who has taken up employment in India. After considering the assesseee's explanations and other material and relying on the ruling of the AAR in the case of Target Corporation of India (P) Limited, the AO held that the nature of the impu....
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....s 195 and submitted that the Ld CIT (A) erred in holding that this payment is covered u/s 9(1) (vii) and hence TDS was required to be made. Therefore, she pleaded to allow the appeal. 4. Per contra, the Ld DR submitted that on the issue of the remittances of Rs. 15,48,340/-, on due examination, the Ld CIT(A) held that it is evident that the requirement of visits and stay of the personnel is required from foreign service providers and they are a pre-requisite to perform the services i.e the personnel visits forms part and parcel of the scope of services to be rendered. The necessity of visit of such personnel is very much part of the scope of service rendered. But for the visits of the personnel, the services would not have been render....
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....one through the appellant contentions above. The case laws referred by the appellant are clearly distinguishable on the facts of the case of the assessee. In the present case, the employees had been sent to exchange experience and skill as stated by assessee. "employee is sent to work somewhere else temporarily" assumes significance. It is that the employees is sent to work by the employer. i.e. the employer in this case is the entity which is seconding. once the term of the secondment is over the employee will return back to their original employer. In the relevant issue in the case of Target Corporation India (P) Ltd, The Hon'ble AAR held that Seconded employees shall continue to have their pay-roll processed by T but applicant is to reim....
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....n 195 - It was clear from records that all five secondees were not ordinary employees or workers but they were deputed at high level managerial/executive positions - Whether once it was found that secondees were rendering managerial and highly expertise services to assessee, payment for such services fell within ambit of FTS defined in explanation 2 to section 9(1)(vii) - Held, yes - Whether, therefore, impugned order passed by Assessing Officer was to be confirmed - Held, yes Para 10] in favour of revenue]. In view of the above discussion, I held that assessee was in default in view of section 201(1) of the Act having assessee not deducted TDS on remittances of Reimbursement of salary costs INR 29,62,869/-, therefore I upheld the action of....