The Assessing Officer attributed 15% of receipts as income attributable to the assessee\u2019s PE in India and applied a 40% tax rate, resulting in a withholding tax rate of 6%. On writ, the assessee contended that, in a similar case, the Supreme Court had held that there was no taxable income in India where expenses exceeded the gross revenue attributable to the PE. The Court held that the Assessing Officer must consider expenses in determining the withholding rate. As the computation was based solely on gross revenue without expense allowance, the matter was remanded for fresh consideration. (AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 197: Deduction at source \u2013 Certificate for lower rate \u2013 Income deemed to accrue or arise in India \u2013 Business connection \u2013 Business profits \u2013 Assessing Officer required to take assessee\u2019s expenses into account in determining rate of withholding tax \u2013 Matter remanded \u2013 OECD Model Convention \u2013 Art. 7 [S. 9(1)(i), Art. 226]<\/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-55811","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ewb","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55811","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=55811"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55811\/revisions"}],"predecessor-version":[{"id":55812,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55811\/revisions\/55812"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=55811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=55811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=55811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}