Assessee is \u00a0an Indian software development company. Assessee sub-contracted its onsite overseas work to its subsidiary in China and made payment of sub-contracting charges to said subsidiary. \u00a0Assessing Officer held that payments made to subsidiary in China was liable for tax deduction under section 9(1)(vii) as fees for technical services (FTS) in view of retrospective amendment to section 9 by Finance Act, 2010 and substitution of Explanation to said section.\u00a0 High court \u00a0held that substitution had taken place in Finance Act, 2010 which was effective from 2011-12, thus, same would not apply to assessee during relevant years. Accordingly the\u00a0 assessee is \u00a0not liable to deduct tax at source on payments made by it to its subsidiary in China. Special leave petition filed against said order of High Court is dismissed was to be dismissed\u00a0 as there is gross delay of 296 days and also on merits. (AY. 2009-10, 2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii):Income deemed to accrue or arise in India-Fees for technical services-Software-Sub-contracted certain overseas subsidiary-Not liable to deduct tax at source-Special leave petition filed against said order of High Court is dismissed was to be dismissed as there is gross delay of 296 days and also on merits.[S. 195, 201(1), 201(IA), Art. 136] <\/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-49178","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cNc","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49178","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=49178"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49178\/revisions"}],"predecessor-version":[{"id":49179,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49178\/revisions\/49179"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=49178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=49178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=49178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}