The assessee, a public financial institution carrying on general insurance business under relevant laws and IRDAI regulations, had paid an amount as commission to non-resident agents. The Assessing Officer disallowed this amount under S. 40(a)(ia) for non-dedication of TDS under S. 195. However, the Commissioner (Appeals) deleted the disallowance on appeal.<\/p>\n
The Tribunal held that the non-resident agents had no permanent establishment or business activities in India, and the commissions were taxable only in the agents\u2019 foreign countries. Therefore, s. 195 did not apply.<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Commission payment outside India-: Income deemed to accrue or arise in India-Commission paid to non-residents for services rendered outside India is not taxable in India; hence, the assessee is not liable to deduct TDS under S. 195. [S. 9(1)(i), 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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-61353","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fXz","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61353","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=61353"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61353\/revisions"}],"predecessor-version":[{"id":61354,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61353\/revisions\/61354"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=61353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=61353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=61353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}