No TDS on Service by non resident agent assisting in export obligations. Check Total Details for Following Case Citation: CIT, Chennai vs. M/s Orient Express, Madras HC, TCA Appeal No. 92/2015, Date of Declaration– March 2,2015 Recently we supply complete information for No Service Tax on Free Home Delivery/Pick up of Food. Now you can scroll down below and check more details for No TDS on Service by non resident representative facilitating export responsibilities.
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No TDS on Service by non resident agent assisting in export responsibilities
There was a recent case in Madras High court that the TDS was not deducted by assessee and the very same expense were disallowed by department on the note that the commission paid to the representative was not after deducting TDS, which typically ought to be done in any case. The court turned down the contention of department and gave the order in the favour of assessee.
This case was observed with among the assessee called M/S ORIENT EXPRESS, which is taken part in production and exporting of leather garments from India to abroad with the help of many representatives. The case came out when the assessee declared the expenditure which are in nature of commission paid to such representatives for facilitating exports with the assessee which may be resident or non resident, but the department prohibited the expense on the note that it was the commission earnings which needs TDS to be deducted and which was not deducted by the assessee therefore it was disallowed. The assessee replied for the exact same in the court and court authorized the contention of assessee.
The appeal which department laid was that the assessee has gotten the technical services which are provided for running the business in India and therefore TDS ought to be deducted for the same, but the reply offered by assessee was accepted by the court. Assessee provided the following reply:
Need To Read– No Service Tax on Free Home Delivery/Pick up of Food
The agent services were not in nature of technical services, it was just for the smooth working of the assessee’s export obligations which were completed by the agent. The agent didn’t supplied any services which are vital for the running of business, it were the services for completing the obligations which were needed from the government’s end. Even more it was likewise clarified that the agent who was offering services has no permanent establishment in India which symbolizes that income was not accruing or remitting to india, so no TDS is required to be subtracted in such case.
The court authorized the petition of assessee on the note that the services supplied by the representative were in nature of finishing export commitment and so it can not be called as technical services. 9( 1 )( i), only such part of income as is resonably attributable to the operations brought out in India can be taxed as income from business connection in India.
The case was in between CIT Chennai V/s M/s Orient reveal in Madras High court dated 2 nd March 2015 and the appeal of assessee was accepted which of department was declined.
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