Allowing the appeal of the assessee the Tribunal held that ; commission paid to foreign agents abroad for rendering services in their respective countries is not taxable in India hence not liable to deduct tax at source. ( AY. 2012-13)
Bengal Tea & Fabrics Ltd. v. DCIT (2018) 169 ITD 665 (Kol) (Trib.)
S.40(a)(ia):Amounts not deductible – Deduction at source Commission paid to foreign agents abroad for rendering services in their respective countries is not taxable in India hence not liable to deduct tax at source–DTAA-India -Hong Kong- Art.7 OECD Model tax Convention. [ S. 9(1)(i), 195 ]