[aaykarbhavan] TDS obligation arose even if hire charges were paid through settlement of accounts without actual cash payments

TDS obligation arose even if hire charges were paid through settlement of accounts without actual cash payments

May 31, 2014[2014] 45 taxmann.com 196 (Delhi - Trib.)

IT/ILT: Where, assessee a tax resident of Thailand, was engaged in execution of hydroelectric-power project of NTPC as a sub-contractor of another Thailand based company ITDL, in view of fact that ITDL provided certain machinery on hire to assessee, tax was required to be deducted at source while making payment of hire charges even though said payment was not made in cash and it was merely adjusted from amount due to assessee on account of execution of contract work

IT/ILT: Payment of legal expenses made by assessee to a law firm in Thailand in relation to arbitration proceedings conducted in said country, was not chargeable to tax in India and, thus, assessee was not required to deduct tax at source while making said payments

 

Regards

Prarthana Jalan

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

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