Payments Made To Overseas Company For Services Utilized Abroad, Does Not Warrant Tax Deduction At Source U/s 195: Delhi ITAT

The Delhi ITAT ruled that payments made to an overseas company for services utilized abroad do not warrant tax deduction at source under Section 195 of the Income Tax Act. The tribunal emphasized that services used for business or income outside India are exceptions to TDS requirements. The case involved QAI India Ltd. and Everest Global Inc., where the payment was made for services provided and used outside India. The ITAT concluded that such payments are not taxable in India and deleted the addition made by the AO.