2004 (1) TMI 16

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..... d notices requiring the assessee to show cause why the remittances made by it to Hewlett Packard (USA) in respect of salaries paid by HP (USA), on behalf of the assessee to four "foreign technicians"/expatriates, be not treated as "fee for technical services" and why the assessee should not be treated as an assessee-in-default for not deducting tax from the said payment under section 195 of the In .....

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..... x thereon. The Tribunal expressed the opinion on the facts that the payment has rightly been treated as salary borne by the assessee on which tax had been correctly deducted at source under section 192 of the Income-tax Act, 1961. Reliance is also placed on the letter of the Central Board of Direct Taxes and a letter addressed by the Assistant Commissioner of Income-tax (Special), Circle-30(1), Ne .....

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..... expression "fees for technical services" under the Explanation to section 9(1)(vii) of the said Act. That provision itself makes it clear that salaries would not fall within the expression "fees for technical services". Moreover, the said decision was delivered on its peculiar facts. In fact, in the said decision it is observed that: "There appears to be no dispute that the services rendered by .....

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