The Tribunal held that the remittances made by the assessee outside India to these agents consultants could not be deemed to accrue or arise in India and, therefore, were not chargeable to tax in India. The assessee was not under an obligation to deduct tax at source and the assessee could not be treated as an assessee-in-default. The Tribunal also held that the evaluators had not provided to the assessee any technical services but merely applied their skill for evaluating Ph. D. theses, The Commissioner (Appeals) was not justified in holding the assessee-in-default for not deducting tax at source from the remittance made to the Ph. D. theses evaluators. Income earned by the non-resident in the form of faculty development expenses could not be said to be chargeable to tax in India and the assessee was not liable to deduct tax at source under section 195 of the Act. The assessee was not in default under section 201 of the Act and consequently interest could not be charged under section 201(1A) of the Act. (AY. 2011-12 to 2017-18)
Sharda Educational Trust v. ITO, (TDS)(IT)(2022) 97 ITR 456 (Delhi)(Trib)
S. 195 : Deduction at source-Non-resident-Consultant-Commission on student recruitment-terminology ‘consultants’ not conclusive-Marketing of educational courses-Agents having no permanent establishment-Medical education programs-Payment outside India to persons for evaluation of PH. D. Thesis-Evaluation not a rendering of technical services-Faculty development-Not liable to deduct tax at source-DTAA-India-Singapore. [S. 5(2), 9(1)(vii), 201,201(IA), Art. 7, 12(5)]