ITAT Allows TDS Exemption for Technical Services Income Received from Abroad for Project Work u/s 9(1)(vii)(b)

The ITAT has ruled in favor of granting TDS (Tax Deducted at Source) exemption for income from technical services received from abroad for project work under Section 91(1)(b) of the Income Tax Act. This provision applies when income is earned from a foreign source and relates to services provided for a specific project, subject to the conditions specified in the relevant tax treaty or legislation. The tribunal’s decision highlights that such income is exempt from TDS if it falls within the scope of the bilateral agreement between the two countries involved, ensuring that the taxpayer is not doubly taxed.