[aaykarbhavan] No withholding taxes from debtor collection charges paid by co-venture and in-turn reimbursed by assessee

No withholding taxes from debtor collection charges paid by co-venture and in-turn reimbursed by assessee

May 6, 2015[2015] 56 taxmann.com 387 (Mumbai - Trib.)

IT/ILT-I: Where assessee, a joint venture between UPS WWF, USA, and 'J' Ltd., made reimbursement of debtor collection charges to US based company, in view of fact that had assessee made direct payment to payee, it would not have fallen within ambit of 'fee for technical services', assessee was not required to deduct tax at source while making payment in question

IT/ILT-II: Where assessee made reimbursement of legal expenses to UPS WWF in respect of services taken from Titus, i.e., an Indian company, without deducting tax at source, since payment was made to resident legal firm, matter was to be remanded back to Assessing Officer with a direction to verify as to whether Titus had paid tax on impugned payments by incorporating same in their respective income

 

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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