Landmark Cases on TDS and Withholding
317 decisions, ranked by how many judgments on BharatTax rely on them.
The Assessing Officer can disallow expenses under section 40(a)(i) for non-deduction of tax at source on payments to foreign entities. The assessee can apply to the AO for determination of the income portion subject to TDS or for issuance of a certificate.
Payments made by stock exchange members for services rendered by the stock exchange are not fees for technical services for the purpose of TDS, and therefore, disallowance under Section 40(a)(ia) is not warranted for non-deduction of TDS.
A contract is a works contract, attracting Section 194C, if its dominant purpose is to carry out work, even if some materials are involved in its execution.
Tax Deducted at Source (TDS) provisions cannot be applied when the identity of the ultimate recipient of the amount is not known. TDS cannot be made when there is no reasonable certainty on the amount of income accruing in the hands of a Non-Resident, or when the recipient has already offered the income to tax.
Amendments to Section 200A of the Income-tax Act are prospective, not retrospective. Therefore, fees under Section 234E cannot be demanded for TDS deducted before the amendment's effective date of June 1, 2015.
Tax is not required to be deducted at source under Section 195 from commission paid to a non-resident agent for services rendered outside India, especially when the agent has no participation in the event organized in India and the services do not fall under the definition of technical services.
Proceedings to declare an assessee in default under Section 201 of the Income Tax Act, 1961, initiated after a period of four years from the end of the relevant assessment year, are not permissible after the amendment of Section 201(3) by the Finance (No. 2) Act, 2009, effective from April 1, 2010.
Commission payments made abroad are not liable to be disallowed for non-deduction of TDS. The disallowance by the Assessing Officer on this ground is not justified.
The Income Tax Officer (ITO) bears the onus to verify tax payment by recipients when the assessee provides declarations confirming income has been offered for tax.
A non-jurisdictional decision of a higher judicial body must be followed, especially when it aligns with decisions from higher courts and previous tribunal rulings on similar facts. The deduction of TDS is allowable if paid by the due date of filing the return under Section 139(1), and the revenue must substantiate any claims of double deduction.
The delay in filing TDS statements is not penalized if there was no intentional delay and the statements cannot be filed before the payment of taxes.
Tax is required to be deducted at source under section 195 only if the income payable to a non-resident is chargeable to tax in India. Income is chargeable if it is received or deemed to be received, or has accrued or arisen or deemed to have accrued or arisen in India.
Interest under section 201(1A) is compensatory and cannot be charged for the period beyond the date when the recipient has deposited the tax.
Penalty under section 272A(2)(k) for late issuance of TDS certificate is deleted when TDS is paid in time, returns are filed on time, and there is no loss to revenue, as the delay is technical or venial.
Payments do not partake the character of fees for technical services under section 9(1)(vii), thus, the provisions of section 195 are not applicable.
Delay in filing a buyer's declaration under Section 206C of the Income-tax Act, 1961, does not empower the Assessing Officer to deny the benefit of the declaration to the assessee.
Payments for the operation and maintenance of windmills attract the provisions of Section 194C of the Income Tax Act, requiring tax deduction at source.
