payment of interest by branch office to foreign head office not chargeable
May. 11, 2016
Assessee incorporated in Netherlands, with principal branch office in India, remitted funds to its head office as payment of interest. Assessee claimed exemption that branch and head office to be aken as one bank. High Court held both were separate entities and cannot be trated as on entitity for tax deduction u/s 195(1), and remittance of interest must result in an income cargeable under the Act. No obligation on assessee to deduct tax.