TDS u/s 195 - withholding of tax - GBAs/BDAs are not paid for ...

Non-resident GBAs/BDAs payments for sales promotion not taxable in India; no tax withholding needed u/s 195.

May 27, 2022

Case Laws Income Tax AT

TDS u/s 195 - withholding of tax - GBAs/BDAs are not paid for rendering any managerial, technical or consultancy services but only for promoting sale on behalf of the assessee and therefore such payments are business income of the payees which squarely falls within the scope of the Article 7 of the respective DTAAs relating to ‘business profits’. It is an undisputed fact that the GBAs/ BDAs located overseas are non-residents and do not have PE in India. Hence, the payments to GBAs/ BDAs being the business profit of the GBAs/ BDAs are not taxable in India in the absence of PE. The assessee is therefore not liable to withhold any tax on such payments. - AT

View Source

← Previous Next →

TDS u/s 195 - withholding of tax - GBAs/BDAs are not paid for ...

Non-resident GBAs/BDAs payments for sales promotion not taxable in India; no tax withholding needed u/s 195.

May 27, 2022

Case Laws Income Tax AT

You may also like:

Disallowance of claim of commission payment - Liability to deduct TDS for making payment to Non-Residents - withholding tax - where payment of commission has been made...

Assessee employed by Indian entity but sent on long-term international assignment to Singapore. Salary received in India for administrative reasons, but employment...

TDS disallowance u/s 40(a)(i) for non-deduction on overseas payments towards patent fees, reimbursement of official fees and professional fees, treating such payments as...

Receipt of Fees for Technical Services (FTS) - there is no dispute that the payment made was in the nature of FTS and there is no article in DTAA for taxing the FTS...

The appellant qualified as a non-resident in India during the previous year 2015-16. A non-resident is taxable in India only for income received/deemed to be received or...

Income accrues or arises in India - services to MTR foods Private Limited who is located outside India - Secondment charges paid in respect of the professional services...

TDS u/s 195 - payments by resident Indian end-user to non-resident computer software manufacturers/suppliers - payment for software licenses not royalty under Article 12...

Liability to pay interest u/s 234B - In the light of legal position as it existed for the relevant Assessment Years prior to insertion of proviso to Section 209(1) of...

No doubt, if the person (payer) who had to make payments to the non-resident had defaulted in deducting the tax at source from such payments, the non- resident is not...

Taxability of Income in India - The receipt of IUC charges cannot be taxed as Royalty under Article 13 in India of India-France DTAA. The payment received by the...

Withholding Tax u/s 195 - CIT(A) examined the taxability of the non-resident under the provisions of the DTAA between India and Italy. The AO, in the Remand Report, had...

Where not only the bonds were raised outside India, but the interest payments were also made to non-residents outside India from a bank account held by the assessee...

Rate of TDS - Non-availability of PAN - Benefit of treaty - in case of payments made to non-residents, the assessee was entitled to deduct taxes at source at the rates...

TDS u/s 195 - Payment chargeable to tax in India or not DTAA with USA - DRP held that the services provided by the non-residents were received and utilised by the...

The commission has been paid to non-resident outside India for services rendered outside India - where the non-resident agent operates outside India, no part of his...

Quick Updates: