The Income Tax Appellate Tribunal (ITAT) delivered a ruling dated 6 March 2009 in the case of Deputy Commissioner of Income Tax v. Venkat Shoes Pvt. Ltd. (2009 TIOL 241-ITAT-MAD) on the need to approach the Tax Authorities for a withholding tax order when making payments to a non-resident who is not chargeable to tax in India.

(a) Facts. The Taxpayer (i.e. Venkat …

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