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TMI Blog2013 (5) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... 2002 there was no liability for making payment on behalf of the assessee - When there is no liability to pay royalty and consequential interest, there was no liability to deduct TDS. It is clear that agreement with regard to payment of royalty was cancelled, no royalty was payable and therefore, the question of deducting TDS on such royalty does not arise. These facts are not in dispute - Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the IPRs belonging to that company and also to participate in Global Technology Development efforts funded by them. The assessee was to pay royalty at 15% on internal and export sales of all products made, sold, assembled and licenced by the assessee. According to him the agreement came to be executed on 6th September 2000. In the financial year 2001-02 the assessee-company made debit entries on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellate Authority dismissed the appeal. Aggrieved by the same, he preferred an appeal to the Tribunal. The Tribunal held that once the agreement itself is cancelled, consequential payment of royalty also stood cancelled. For the entire period from inception up to 30th July 2002 there was no liability for making payment on behalf of the assessee. When there is no liability to pay royalty and c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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