408 October 20 To October 26, 2018 u Taxmann’s Corporate Professionals Today u Vol. 43 u^50
parties on loans but similar charges were not
collected from them. Thus, projected accounts
were not acceptable, and, hence, application
was rejected.
The High Court held in favour of revenue
as under
It was undoubtedly true that the deduction
of tax at source and depositing it with the
Government by the payee would not decide
the final tax liability of the recipient of the
income which would be the subject matter
of assessment of the return.
If tax higher than what was actually due to
be paid by the assessee to the Department
was recovered in form of TDS, the assessee
could always claim refund of such excess tax.
By suggesting collection of tax at reduced
rate of 1 per cent, AO had not expressed
his final decision, his opinion would not be
binding on department and, thus, assessee’s
application to deduct tax at reduced rate
could not be accepted, particularly when
assessee had option to claim refund of tax
deposited with Government.
Since projection of losses by assessee were
found questionable as Commissioner had ex-
pressed an opinion that the losses projected
by the company didn’t appear to be genuine,
assessee’s application for reduced rate of TDS
could not be granted.
Survey ees f paid to NR for assessing
only damages in transit of goods to
Foreign Country not taxable as FTSRoyal Sundaram Alliance Insurance Co.
Ltd. v. Dy. CIT [2018] 97 taxmann.com 644
(Chennai - Trib.)
Assessee-insurance company hired services
of non-resident surveyors to assess loss or
damage in transit of goods exported to foreign
country. It paid survey fees without deducting
tax at source. Surveyors had assessed damages
to goods outside country.
Moreover, surveyors assessed damages as
per their experience and knowledge but said
knowledge was not made known to asses-
see and what was reported to assessee was
only extent of damages for so as to enable
assessee to compensate loss to customers. It
was held by the ITAT that payments made
to surveyors were not liable for taxation in
India as fees for technical services.Statutory changes
Govt. issues Sovereign Gold Bond
Scheme 2018-19NOTIFICATION [F. NO. 4(22)-B(W&M)/2018,
DATED 08-10-2018
The Central Government has issued Sovereign
Gold Bond Scheme 2018-19. The Sovereign
Gold Bonds will be issued every month from
October 2018 to February 2019 as per the
specified schedule given below:S.
No.Tranche Period of
SubscriptionDate of Issuance- 2018-19
Series II
October 15-19, 2018 October 23, 2018- 2018-19
Series III
November 05-09, 2018 November 13, 2018- 2018-19
Series IV
December 24-28, 2018 January 01, 2019- 2018-19
Series V
January 14–18, 2019 January 22, 2019- 2018-19
Series VI
February 04-08, 2019 February 12, 2019The Bonds will be sold through banks, Stock
Holding Corporation of India Limited (SHCIL),
designated post offices, and recognised stock
exchanges, viz., National Stock Exchange of
India Limited and Bombay Stock Exchange
Limited.Weekly reVieW