Disallowance u/s 40(a)(iii) cannot be made in respect of salary paid to non

IT : Disallowance u/s 40(a)(iii) cannot be made in respect of salary paid to non-residents for services rendered abroad

Income-tax : Since the salary paid to non-residents for services rendered in Netherland is not chargeable to tax in India, provisions of section 40(a)(iii) will not be applicable and accordingly disallowance under section 40(a)(iii) cannot be made in respect of salary paid to non-residents for the services rendered abroad [Section 40(a)(iii) of the Income-tax Act, 1961 - Business disallowance - Salary payable outside India] - [2011] 10 taxmann 131 (Delhi - ITAT)