DCIT vs. UPS Jetair Express Pvt. Ltd. (TS-102-ITAT-2015(Mum.)) dated March 10, 2015
Facts of the case
The assessee M/s. UPS Jetair Express Pvt. Ltd. an Indian company is a joint venture between UPS Worldwide Forwarding Inc. USA (UPS WWF) and Jetair Pvt. Ltd. engaged in the business of international express delivery services.
During the year, the assessee had obtained debtor collection services from RMS USA and legal services from TITUS an Indian firm. The payment for such services was made by M/s. UPS WWF USA and later reimbursed by the assessee to UPS WWF on cost-to-cost basis without any mark-up. No TDS was deducted on such services.
The AO contended that the assessee failed to deduct TDS u/s. 195 r.w.s. 9(1)(vii) and made the disallowance of such expenses
u/s. 40(a)(ia).
In appeal, CIT(A) rejected assessee's contention and AO's order was upheld.
Being aggrieved, the assessee preferred an appeal before Mumbai ITAT.
Issues
Facts of the case
The assessee M/s. UPS Jetair Express Pvt. Ltd. an Indian company is a joint venture between UPS Worldwide Forwarding Inc. USA (UPS WWF) and Jetair Pvt. Ltd. engaged in the business of international express delivery services.
During the year, the assessee had obtained debtor collection services from RMS USA and legal services from TITUS an Indian firm. The payment for such services was made by M/s. UPS WWF USA and later reimbursed by the assessee to UPS WWF on cost-to-cost basis without any mark-up. No TDS was deducted on such services.
The AO contended that the assessee failed to deduct TDS u/s. 195 r.w.s. 9(1)(vii) and made the disallowance of such expenses
u/s. 40(a)(ia).
In appeal, CIT(A) rejected assessee's contention and AO's order was upheld.
Being aggrieved, the assessee preferred an appeal before Mumbai ITAT.
Issues
