2019 (2) TMI 2055

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....ments in the social portal on behalf of their clients. It applied for a NOC for withholding certificate u/s.195(2) in respect of the services to be availed from M/s. Face Book Ireland Ltd., a non-resident, for making advertisement in their social portal for the assessee's client M/s.Cholamandalam General Insurance Company Ltd. The AO held that face book is social networking site, placing advertisements in the social networking sites are patented and provide valuable services, which are essentially technical in nature, receiving such kind of expertise and knowledge from Face Book, Ireland is nothing but technical services rendered by Face Book which clearly attracts the provisions of section 195 and hence tax is deductible @ 10% on the payme....

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....Ld.AR presented the case on the above lines. She invited our attention to the decision of Google India (P)Ltd. Vs. Joint Director of Income-tax (International Taxation) Range-1,Bengaluru, reported in (2018) 93 taxmann.com 193 (Bangalore- Trib.) / (2018) 194 TTJ 385 (Bangalore-Trib) dated 11.05.2018, wherein after referring the Tribunal decisions in the cases of Right Florist P.Ltd., dated 12.04.2013 (2013) 32 taxmann.com 99(kolatta-Trib) (2013) 25 ITR(T) 639 (Kollatta-Trib) (2013) 143 ITD 445(Kolkatta-Trib) and Pinstorm Technologies P.Ltd, Yahoo India (P) Ltd., etc, it is held in para 116 that "In all these cases, the assessee was either an advertiser or act on behalf of some other advertiser and has purchased space from the owner of search....