Dismissing the appeal of the revenue, the Court held that fees for professional services in nature of audit and advisory outside India, which is not chargeable to tax in India hence not liable to deduct tax at source. Accordingly no disallowances can be made. (Arising from ITA No. 1918/1480/ M/2013 dt. 18-03-2016) (ITA No. 690 of 2017 dt 24-09-2019 dt 24-09-2019 ( AY. 2008-09)
CIT v. KPMG (2019 ) BCAJ-October-P. 55 (Bom.)(HC)
S. 40(a)(ia) : Amounts not deductible-Deduction at source– Professional fees–Payment made outside India–Not chargeable to tax in India – Not liable to deduct tax at source-DTAA-India-China. [S. 9(1)(vii), 90(2), 195]