The assessee had remitted Rs.65.50 lakhs to Abu-Ghazaleh Intellectual Property (AGIP), acting as agent of Al Houda Hotels & Tourism Co., Qatar, towards acquisition of the trademark \u201cJamawar\u201d. The assessee furnished the trademark assignment agreement, evidence of ownership, nature of right transferred, valuation and commercial terms and Tax Residency Certificate of the recipient, who was a tax resident of Jordan. The Tribunal held that the payment was towards outright acquisition of a capital asset and not royalty. Relying upon<\/p>\n
and<\/p>\n
, it held that the obligation under section 195 arises only where the remittance is chargeable to tax in India and not merely because the payment is made to a non-resident. Accordingly, the assessee was not liable to deduct tax and the demand under sections 201(1) and 201(1A) was deleted.<\/p>\n
<\/b><\/div>\n","protected":false},"excerpt":{"rendered":"
S.195: Deduction of tax at source \u2013 Payment to non-resident \u2013 Acquisition of trademark \u2013 Assessee acquired absolute ownership of trademark \u201cJamawar\u201d from a non-resident for lump-sum consideration \u2013 Assessee furnished trademark assignment agreement, proof of ownership, nature of right transferred, valuation details, commercial terms and Tax Residency Certificate of recipient \u2013 Payment was for acquisition of a capital asset and not for use of trademark or payment of royalty \u2013 Consideration for outright acquisition of trademark being capital gains in the hands of recipient, provisions of section 195 were not attracted \u2013 Assessee could not be treated as assessee-in-default under section 201(1) and interest under section 201(1A) was not leviable \u2013 Demand deleted. [S. 5, 9(1)(vi), 201, 201(1A).] <\/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-64978","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gU2","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64978","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=64978"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64978\/revisions"}],"predecessor-version":[{"id":64979,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64978\/revisions\/64979"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}