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.

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