The ITAT examined two issues: (1) Tax deduction at source (TDS) ...

ITAT Examines TDS on Seconded Employees and Disallowance of Technology Fees; Case Remitted for Further Review.

September 30, 2024

Case Laws Income Tax AT

The ITAT examined two issues: (1) Tax deduction at source (TDS) u/s 195 on payments to seconded employees, and (2) disallowance of technology fees paid to the parent company. Regarding TDS, the ITAT found clauses indicating the seconded employees had a lien on their jobs with the parent company, and the assessee provided tools/equipment and indemnified the parent company. These aspects required fresh examination by the Assessing Officer (AO) to determine the true nature of payments. On technology fees disallowance, the ITAT held that the AO/TPO cannot disallow genuine expenses merely because no benefits accrued. However, the assessee failed to substantiate services rendered by the parent company through cogent evidence. The ITAT remitted this issue to the AO/TPO for fresh adjudication after considering all evidence filed. The assessee's appeal was allowed for statistical purposes.

View Source

← Previous Next →

The ITAT examined two issues: (1) Tax deduction at source (TDS) ...

ITAT Examines TDS on Seconded Employees and Disallowance of Technology Fees; Case Remitted for Further Review.

September 30, 2024

Case Laws Income Tax AT

You may also like:

ITAT addressed multiple issues regarding an IT company's tax assessment. The Tribunal left open the determination of whether the assessee operates as a KPO or software...

The Income Tax Appellate Tribunal (ITAT) examined the taxability of income in India regarding management service fees. For quality development and training services, the...

TDS disallowance for professional fees paid to non-residents without TDS deduction was deleted as the payees did not have a fixed base or permanent establishment in...

The ITAT addressed various issues: disallowance u/s 40(a)(ia) for year-end provisions, deduction u/s 10AA for interest income, TDS u/s 195 for subscription fees, foreign...

The Income Tax Appellate Tribunal (ITAT) adjudicated on various transfer pricing issues concerning an assessee. Regarding segmentation of business activities, the ITAT...

In the present case, the Income Tax Appellate Tribunal (ITAT) held that when the sale of software (prime) license fees is not taxable, the fees for provisions for other...

The ITAT considered the levy of late fee u/s 234E for belated filing of quarterly TDS returns. It noted the amendment to section 200A by the Finance Act, 2015, effective...

Fees for Technical Services - Reimbursement of salary and other related costs - the salaries of such seconded employees were deposited in their overseas bank accounts,...

Regarding additions u/s 14A for disallowance of expenditure related to exempt income, the ITAT upheld the CIT(A)'s order, which modified the Assessing Officer's (AO)...

The Income Tax Appellate Tribunal (ITAT) held that SanDisk India did not constitute a Dependent Agency Permanent Establishment (DAPE) of the assessee foreign company,...

TDS u/s 195 - TDS on overseas payment - Annual Payment made to the international boards through affiliation with IBO, Cambridge etc. under the head authorization fee,...

ITAT allowed assessee's appeal on three key issues. First, TDS under s.194H not applicable on discounts given to prepaid distributors, following SC ruling in Bharti...

The Assessee did not deduct TDS u/s 195 on payments made to Ciena, US, resulting in disallowance u/s 40(a)(i). The addition was based on the assumption that the payments...

TDS u/s 195 r.w.s. 192 - salary costs of a seconded employee - The employees in their capacity as employees of the assessee had to control and supervise the activities...

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...

Quick Updates: