Assessee is\u00a0 engaged in business of software development services to its US based holding company. During year, Assessing Officer\u00a0 held\u00a0 that assessee had not deducted TDS under section 195 on international transaction for payment made on account of data line charges to its holding company. Assessing Officer\u00a0 made an addition as shortfall of TDS amount on data line charges and further calculated interest under section 201(1)\/201(1A) of the Act. On appeal the\u00a0 Commissioner (Appeals) deleted the addition. Tribunal held that\u00a0 the\u00a0 amount paid to holding company was on actual cost basis without any element of markup and was in nature of reimbursement of expenses incurred by way of using network connectivity provided by service provider and, therefore, same was not chargeable to tax on any account. Order of CIT(A) is affirmed. (AY. 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Data line charges-Neither royalty nor fees for technical services-Reimbursement of expenses on actual cost basis-Not chargeable to tax-Not liable to deduct tax at source-DTAA-India-USA [S.9(1)(vii, 195, 201, Art. 12] <\/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-42830","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-b8O","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42830","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=42830"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42830\/revisions"}],"predecessor-version":[{"id":42831,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42830\/revisions\/42831"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=42830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=42830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=42830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}