TDS on non-resident commission payments turned on compliance records and the scope of sums liable for deduction.

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....Payments to non-residents for travel-agent and hotel-booking commissions did not attract TDS on the facts found, because the assessee had furnished Form 15CB for each transaction, deducted and deposited tax wherever applicable, and filed the TDS returns. The HC accepted the Tribunal's finding that the commission payments to banks, credit card companies, travel agents and related service providers were not sums liable for deduction under section 195 in those circumstances. Since the assessee had complied with the TDS requirements and there was no adverse reporting in Form 3CD on non-deduction, it could not be treated as an assessee in default under section 201, and the deletion of section 201(1) and 201(1A) action was upheld.....