{"id":15018,"date":"2021-01-22T11:59:27","date_gmt":"2021-01-22T11:59:27","guid":{"rendered":"https:\/\/itatonline.org\/digest\/snap-computer-systems-pvt-ltd-v-itoit-2020-83-itr-28-sn-indoretrib\/"},"modified":"2021-01-22T11:59:27","modified_gmt":"2021-01-22T11:59:27","slug":"snap-computer-systems-pvt-ltd-v-itoit-2020-83-itr-28-sn-indoretrib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/snap-computer-systems-pvt-ltd-v-itoit-2020-83-itr-28-sn-indoretrib\/","title":{"rendered":"Snap Computer Systems Pvt. Ltd. v. ITO(IT) (2020) 83 ITR 28 (SN) (Indore)(Trib.)"},"content":{"rendered":"<p>Tribunal held that the non-resident company did not have any permanent establishment or any business connection in India and hence its income could be deemed to have accrued or arisen in India only if the payments were of the nature provided under section 9 of the Act.\u00a0 The Tribunal also held that \u00a0section 9(1)(vii) provides for accrual of income only for the \u201cfees for technical services\u201d which includes specialised services like managerial, technical and consultancy. But the non-resident had not rendered any technical or managerial services to the assessee but was merely a project work procurement agent. The payments were only towards charges for procurement or orders and reimbursement of expenses and were not in the nature of \u201cfees for technical services\u201d and thus did not fall in the ambit of section 9 of the Act.\u00a0 Accordingly the payments for procurement of orders were not subject to deduction of tax at source under section 195 of the Act and the demand for default and interest levied under section 201(1A) of the Act were liable to be deleted. Relied on\u00a0 \u00a0DR. Reddy laboratories ltd., IN RE\u00a0<a href=\"http:\/\/www.taxlawsonline.com\/%5b2016%5d%20387%20ITR%200337\">(2016) 387 ITR 337<\/a>\u00a0(AAR). (AY. 2015-16, 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 195 : Deduction at source-Non-resident-Fees for technical services-Consulting services-Commission for procuring orders from customers -No permanent establishment or  business connection in India-Not liable to deduct tax at source. [S. 9(1)(vii),  201(1), 201(IA)]<\/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-15018","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3Ue","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/15018","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=15018"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/15018\/revisions"}],"predecessor-version":[{"id":15019,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/15018\/revisions\/15019"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=15018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=15018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=15018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}