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TMI Blog2015 (8) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... lace of business in India and they are rendering their services outside India. As such, charging commission on the services rendered outside India is not taxable in India. See ACIT Vs. M/s.Eagle Press (P) Ltd.[2011 (6) TMI 734 - ITAT CHENNAI ] Commissioner of Income Tax is erroneous. The provisions of section 195 and section 9 of the Act, relating to deduction of tax at source on payments made to foreign parties and levy of tax on payments so made are not applicable in the present facts of the case. - Decided in favour of assessee. - I.T.A. No. 932/Mds/2013 - - - Dated:- 30-12-2013 - Dr. O.K. NARAYANAN SHRI VIKAS AWASTHY, JJ. For the Appellant : Shri S. Sridhar, Advocate For the Respondent : Shri B. Arulappa, CIT-DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal before the Tribunal. 4. Shri S. Sridhar, appearing on behalf of the assessee submitted that in order to market its products, the assessee has appointed agents on sales commission basis in various overseas countries. The agents so appointed are non-residents and do not carry any business in India. No part of their income is received or deemed to be received in India or arises or deemed to accrue or arise in India. All these agents do not have any permanent establishment or permanent place of business in India and the dealing of the assessee with these overseas agents is that of principal and agent. Hence, there was no question of deduction of tax at source for the commissions paid to them for the services rendered by them outside Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India is not taxable in India. The co-ordinate bench of the Tribunal in the case of ACIT Vs. M/s.Eagle Press (P) Ltd., (supra) has held as under: 3. As far as the facts of the present case are concerned, the services were rendered outside India and such services were rendered by non residents. Neither the delivery of the services was in India, nor the consumption of the services was in India. In such circumstances the Hon ble Supreme Court in the case of GE India Technology Centre P. Ltd. vs. Commissioner of Income-tax and Another, 327 ITR 456 has held that such payments do not contain wholly or partly any income taxable in India. Therefore the liability of TDS is not cast on the assessee while making such payments. The Income-tax Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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