\u00a0<\/p>\n
The assessee made payments to a non-resident for technical services rendered outside India in connection with projects executed outside India. The non-resident had no permanent establishment in India, and the payments were made for earning income from a source situated outside India. The Assessing Officer disallowed the expenditure under section 40(a)(i) for failure to deduct tax at source under section 195. The Tribunal held that the payments were covered by the exception contained in section 9(1)(vii)(b), since the services were utilised for a business carried on outside India and for earning income from a source outside India. Accordingly, the income was not chargeable to tax in India, there was no obligation to deduct tax at source under section 195, and the disallowance was deleted. (AY. 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40(a)(i): Amounts not deductible-Deduction at source-Non-resident-Fees for technical services-Services rendered and utilised outside India -No tax deductible at source -Disallowance was deleted. [S. 9(1)(vii)(b), 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-62513","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ggh","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62513","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=62513"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62513\/revisions"}],"predecessor-version":[{"id":62514,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62513\/revisions\/62514"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}