International Tax Knowledge Hub

Tax deductors should thus ensure that TDS on payments to non-residents is made at the lower DTAA rate, provided all other DTAA conditions are satisfied..

Taxpayers entering into similar service arrangements, where no proprietary rights are transferred and technical knowledge is not “made available,” can rely on this precedent to justify non-deduction of TDS..

This action safeguards against arbitrary or inconsistent treatment of recurring claims and reinforces procedural fairness in tax administration..

The AO’s discretion and application of mind were evident from the record, and the assessment order was thus immune from revisionary interference..

The Tribunal’s decision provides relief to the assessee by deleting the additions made under Section 69 and Section 56(2)(vii)(b), based on the thorough documentation of the source of investments and the timing and mode of property payments..

The methodology adopted by the assessee stands validated..

The Revenue is consequently directed to give effect to the DRP’s directions and process the assessee’s refund claim..

Taxpayers should ensure robust documentation for support services and be vigilant about the appropriate selection of comparables and valuation methodologies..

This conclusion is actionable for taxpayers making similar intra-group captive consumption arrangements..

Taxpayers whose allocation keys have been accepted by the TPO during transfer pricing proceedings are thus protected from subsequent AO challenges on the same issue..