No TDS since commission income of foreign agent not taxable in India: ITAT Ahmedabad

The Ahmedabad ITAT has held in the case of DCIT, Cir – 2(1)(1), Ahmedabad vs. M/s. Gujarat Microwax Pvt. Ltd. that the provisions relating to deduction of tax at source under section 195 of the Income Tax Act would not be applicable on the commission of a foreign agent as the same was not taxable in India. The ITAT held that the same cannot be taxed in India as income was received by foreign agents on account of services rendered by them in their respective countries and income was not accrued in India.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s