TaxTMI 
TaxTMI 
2022 (2) TMI 346
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....t the rate of 10% at the time of making payment to the Petitioner. Petitioner further seeks a direction to permit GCI to make payments to the Petitioner without deduction of tax at source during financial year 2021-22 relevant to assessment year 2022-23 under the Google Cloud Services Reseller Agreement. 3. At the outset, the learned counsel for the petitioner submits that this Court in Sumo Logic vs. Commissioner of Income Tax International Taxation & Anr, WP(C) 8720/2021 has taken cognizance of identical facts and issue and has issued notice to Respondent Nos.1 & 2. 4. Issue notice. Mr. Sunil Agarwal, Advocate accepts notice on behalf of Respondent Nos.1 & 2. He prays for and is granted six weeks time to file the counter affidavit. Rejo....
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....ns, the AO has proposed that instead of directing GCI to deposit 8%, the Court may direct GCI to deposit INR 98.69 crores (inclusive of surcharge and cess), on the estimated payment of INR 1106.41 crores under the Google Cloud Services Reseller Agreement. A calculation of the above amount has been placed before the Court, in terms of the letter dated 10th January, 2022 issued by the Income Tax Officer TDS Ward- 1(3)(2)(International Taxation), New Delhi. 8. Learned counsel for the Petitioner has pointed out that withholding the rate of 10% as prescribed under the DTAA is inclusive of the applicable surcharge and cess and therefore no additional surcharge or cess is required to be imposed. This position, he submits is settled by this Court ....
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.... appropriate directions may be issued in this regard towards the interim arrangement. 9. We have considered the rival contentions and have also perused the operative part of the impugned order (page 77 of the writ petition), wherein the Respondent No. 2 has made the payments under consideration liable for a withholding at the rate of 10% in accordance with section 115A of the Act read with the DTAA. We have also perused the decision of this Court in Epcos Electronic (Supra) as well as the FAQ issued by the CBDT, wherein it has been held that no additional surcharge and cess is to be applied over the 10% rate as prescribed under the DTAA. In that view of the matter, we direct that purely as an interim measure, the Petitioner would be entitl....