Tribunal Rules Payments Under India-Singapore Tax Treaty Not Reimbursements, Upholds Tax Deduction Disallowance.

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....TDS u/s 195 - disallowance u/s. 40(a)(i) - chargeability of amount to tax in India - rendering of technical services under India-Singapore tax treaty - whether being reimbursement of cost without any mark-up? - The Tribunal, after carefully considering the arguments and examining the relevant agreement, concluded that the payments made by the assessee to BYK Singapore were not reimbursement. The Tribunal noted that the agreement does not support the claim of reimbursement made by the assessee - Receipt of a fixed amount, which may be more or less than the actual outgo, cannot be designated as `reimbursement’.....