1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Export Commission to non resident director held chargeable at PE rate

ByCA Gopal Nathani

Aug 2, 2022

Normally export commission is not chargeable to tax in india unless services are technical or specialised in nature and go beyond mere order collection. If they are held taxable then TDS is required as in the the absence of deduction the expenditure is inadmissible.

However vide 29ITR (Trib) 263 the bench ruled that a non resident could be made subject to tax in india on export commission because of being a director in the payer company. The bench ruled that by being a director he shall be taken to have a fixed base in India.

In this case there is also reference to varied services rendered by the agent besides securing orders which r commonly found in most.