Allowing the appeal of the assessee the Court held that service of market survey rendered by foreign agents is only incidental to function of commission agent, it cannot be regarded as FTS .Accordingly the assessee is not liable to deduct tax at source. ( AY.2009-10)
Evolv Clothing Co. (P.) Ltd. v. ACIT (2018) 407 ITR 72 / 257 Taxman 171/ 168 DTR 1 (Mad) (HC) Editorial: Order in ACIT v. Evolv Clothing Co. (P.) Ltd ( 2013) 142 ITD 618( Chennai) ( Trib) is reversed
S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident – Fes for technical services -Service of market survey rendered by foreign agents is only incidental to function of commission agent, it cannot be regarded as FTS- Not liable to deduct tax at source [ S.9(1)(vii), 40(a)(ia),195 ]