The Dispute Resolution Panel had also observed that the agreements with overseas agent did not signify that any quality checks of the products were carried out by foreign commission agents. Thus, in the absence of any services of technical nature, the commission payments to selling agents outside India were outside the ambit of provisions of section\u00a09(1)(vii)\u00a0read with section\u00a05\u00a0of the Act. The property in goods was transferred in overseas jurisdiction. When the overseas agents were paid commission for securing orders, and such services were utilised for the purpose of making or earning income from a source outside India, the assessee is\u00a0 under no obligation to comply with provisions of section\u00a0195\u00a0of the Act for the reasons that commission paid to overseas agents was not taxable under the Act. The Assessing Officer is\u00a0\u00a0 not justified to disallow the commission expenses under section\u00a040(a)(i)\u00a0of the Act. (AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Commission-Procurement of orders overseas-No disallowance can be made for failure to deduct tax at source.[S. 5,9(1)(vii),195] <\/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-50981","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dgh","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50981","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=50981"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50981\/revisions"}],"predecessor-version":[{"id":52402,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50981\/revisions\/52402"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}