This Q from SM
Qno 3 of PGBP
In the (ii) of A part why not expenses disallow 100% ?
As per section 40 (a)(i)
KkBeginner
Section 40 (a)(i)
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The agent in UK is a non resident and he is rendering his services in UK which means income from those services are accrued outside India. Also the payment is made to him in UK so payment is received outside india too.
Hence as per the concept of scope of total income, income of non resident is not chargeable to tax in india unless it either accrues in India or received in India.
In this case it is neither accrued nor received in India hence not taxable in India.
Therefore no TDS shall be deducted from such payment.