The assessee paid US $ 4,40,000 in respect of a celebrity appearance at Dubai without withholding any tax from the remittance. The Assessing Officer held that the payment made to the celebrity was taxable in India particularly as royalty under section\u00a09(1)(vi)\u00a0of the\u00a0Income-tax Act, 1961\u00a0. He examined the provisions of article 12 of the Double Taxation Avoidance Agreement between India and the U. S. A. and held that the provisions thereof did not come to the rescue of the assessee. The Commissioner (Appeals) not only confirmed the action of the Assessing Officer but held that the whole purpose of organising an India centric event at Dubai was to avoid attraction of the clause regarding income accruing or arising in India and referred to the provisions of section\u00a09(1)(i)\u00a0. He confirmed the withholding demand under section\u00a0201\u00a0read with section\u00a0195\u00a0. On appeal the Tribunal affiriming the oder of the CIT (A) held that , the\u00a0 target audience in India, potential customers in India, intended benefits in India\u00a0 therefore\u00a0 business connection is established hence the assessee is\u00a0 liable to deduct tax at source \u00a0\u00a0( AY.2015-16)<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 195 :Deduction at source – Non-resident – Taxability in India \u2014 Payment to international celebrity appearance at Dubai – Target audience in India, potential customers in India, intended benefits in India \u2014 Business connection \u2013 Liable to deduct tax at source-DTAA -India -USA [ S. 5(2), 9(1) (i), 115BBA,201 Art.12, 23(3) ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-14005","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3DT","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=14005"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14005\/revisions"}],"predecessor-version":[{"id":19725,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14005\/revisions\/19725"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=14005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=14005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=14005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}