The obligation to comply with withholding provisions(WHPs) under the IT Act, 1961 (Act),by non-residents (NRs) has been a subject matter of judicial scrutiny in the past. Based on the interpretation placed by the Apex Court, it was accepted as a settled proposition that an NR making any payment to any person resident in India was not obliged to comply with WHPs of the Act except in cases where the NR had a permanent establishment (PE) in India or otherwise had territorial nexus with India.The obligation to comply with withholding provisions(WHPs) under the IT Act, 1961 (Act),by non-residents (NRs) has been a subject matter of judicial scrutiny in the past. Based on the interpretation placed by the Apex Court, it was accepted as a settled proposition that an NR making any payment to any person resident in India was not obliged to comply with WHPs of the Act except in cases where the NR had a permanent establishment (PE) in India or otherwise had territorial nexus with India.taxmann.com Latest ArticlesRead More
