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1 - 10 of 16 (1.13 seconds)Section 195 in The Income Tax Act, 1961 [Entire Act]
The Income Tax Act, 1961
The Finance Act, 2018
Section 190 in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income-Tax, Andhra ... vs Toshoku Ltd., Guntur Etc on 29 August, 1980
In Toshoku Ltd., supra, the Supreme Court held that payments to agents for performance of services outside India are not liable to be taxed in India.
Section 191 in The Income Tax Act, 1961 [Entire Act]
Section 192 in The Income Tax Act, 1961 [Entire Act]
Ge India Technology Centre Pvt. Ltd.,, ... vs Addl.C.I.T., Bangalore on 17 November, 2017
In GE India Technology Centre P. Ltd., supra, the Supreme Court clearly held that no tax is deductible under Section 195 of the IT Act on commission payments and consequently the expenditure on export commission payable to non-residents for services rendered outside India becomes allowable expenditure.
C.I.T.,Delhi vs Bharti Hexacom Ltd. on 16 October, 2023
From the service agreement with the agents abroad, it is clear that the service rendered is essentially brokerage service even as stated in the very first clause to procure orders and in reference to market research abroad or co=ordination with the supplier or to ensure timely payment or making available its office space for visit by the suppliers. These are ordinarily the tasks, which any agent or a broker undertakes incident to brokerage service. Also, none of the commission agents have any place of business in India. Even if there be any, Explanation 1 to section 9(1)(i) of the Act would attract liability to Indian tax for a non-resident with business connections in India, only on income attributable to his operations in India. There can, therefore, be no liability under the domestic law. If there is also a Double Tax Avoidance Agreement, this inference is further buttressed, if they do not have permanent establishment in India or if they do have one, if they have no activity in India for earning such income. The law on the subject is settled at the level of the Supreme Court itself in CIT v. Toshuku Ltd. (1980) 125 ITR 525 (SC) and had been conceded in a number of circulars.