TDS u/s 195 - compensation paid for breach of contract for ...

No TDS Required on Compensation for Breach of Contract with Foreign Buyer under DTAA Article VII and Section 195.

August 9, 2019

Case Laws Income Tax AT

TDS u/s 195 - compensation paid for breach of contract for supply of material to foreign buyer - assessee’s failure to supply the export order which constitutes business transaction - There is no evidence brought on record that the sum paid to foreign buyer is income within the meaning of Article VII of DTAA to be taxable in India - neither TDS required nor disallowance u/s 40(a)(i)

View Source

← Previous Next →

TDS u/s 195 - compensation paid for breach of contract for ...

No TDS Required on Compensation for Breach of Contract with Foreign Buyer under DTAA Article VII and Section 195.

August 9, 2019

Case Laws Income Tax AT

You may also like:

TDS u/s 195 - Disallowance of sales commission paid to foreign agents - There is no dispute that these foreign agents do not have permanent establishment in India and...

Declared Service or not - appellant had collected an amount towards compensation/penalty from the buyers of coal on the short lifted/un-lifted quantity of coal;...

Arbitral Foreign Award - whether the compensation received by the decree holder towards breach of contract is liable for taxation in India as it is a “windfall gain” -...

TDS u/s 194A OR 194C - short deduction of TDS - compensation paid by the assessee for breach of contract u/s.40(a)(ia) - If at all there is shortfall in TDS deducted by...

TDS u/s 195 - payment was made towards quality rebate on export - assessee has established that it is a quality rebate with relevant documents which goes to reduce the...

The assessee, a Foreign Portfolio Investor registered in India, entered into Forward Foreign Exchange Contracts (FCC) with HDFC Bank to safeguard against foreign...

Income accrued or deemed to accrue in India - As the design services were inextricably connected with setting up of the plant and were rendered through this PE, the...

TDS on demurrage reimbursed by the assessee to the foreign buyer to compensate the foreign buyer for paying demurrage to the ship owner - Income cannot be deemed to...

Liquidated damages arising from breach of contract or forfeiture of amounts like salary or bond money do not constitute consideration for a declared service u/s 66E(e)....

Levy of GST - Supply or not - compensation amounts such as liquidated damages/trade settlement/damages collected from the customers for non-performing of contractual...

Definitions - Regulation 2 of the FOREIGN EXCHANGE MANAGEMENT (FOREIGN EXCHANGE DERIVATIVE CONTRACTS) REGULATIONS, 2000 as amended

TDS u/s 195 - professional fees paid outside India - it cannot go to the article of ‘other income’ only because of the reason that FTS article is not there in the Double...

Levy of service tax - Notice pay compensation - amounts received or recovered by the employer from its employees for resigning from the service - If the employer decides...

TDS u/s 195 - Sales commission paid to foreign company - non deduction of TDS - addition u/s 40(a)(i) - ITAT upheld the CIT(A)'s decision, noting that services rendered...

TDS liability u/s 194A - Interest received on compensation for agricultural land - Award of Compensation - It is infact an enhanced compensation - No TDS liability.

Quick Updates: