sec 10 (8) of the Income Tax Act.
Agreement covered within the vires of sec10(8) cannot be subjected to TDS.
The Learned Commissioner of Income Tax in exercise of his powers u/s 264 had disallowed the contention of the Assessee on the grounds inter alia that the particular exemption provisions will apply to only to foreign nationals. And further since the asssessee who worked as an employee of the State Government (Medical services ) this engagement was a “secondment”.The precise compliance of non eligibility to Tax is to be confined only to the two soverign powers or the States as the signatories and as Grantor and Grantee respectively in a Co operative Technical Assistance Programmethe remuneration received in the case of an individual who isassigned to duties in India in connection with any Cooperative Technical Assistance Programmes and Projects in accordance with such agreement entered into by the Central Government and the Government of a foreign State (the terms whereof provide for the exemption given by this clause), directly or indirectly from the Government of that foreign State for such duties, shall not be included in his total income (for the purposes of taxation under the Act 1961). The High Court in this singularly pertinent Order gives a definitive quietus to the issues raised and is arguably an important piece of Interpretation to this Otherwise rare applicability of sec 10 (8) of the Income Tax Act 1961.