ITAT : Only markup under manpower supply agreement subject to TDS, not salary reimbursement

Delhi ITAT upholds CIT(A)'s order deleting Sec 40(a)(i) disallowance on reimbursement of salary of seconded employees to Cyprus resident entity pursuant to manpower supply agreement, holds assessee rightly deducted TDS only on markup; Notes that invoices clearly showed bifurcation towards reimbursement of salary and 5% markup, observes that TDS inapplicable on reimbursement absent income element; Also notes that non-resident only supplied workforce/ employees on secondment basis and was not responsible with regard to the services performed by seconded employees; Further notes that non-resident has deducted TDS u/s 192 while making payment to seconded employees and thus, there was no loss to Revenue; Also upholds CIT(A)'s conclusion that reimbursement of salary cannot be considered as fees for technical services under Article 12 of India- Cyprus DTAA as services did not make available any technical knowledge, experience, skills etc., relies upon Bombay HC ruling in Marks and Spencers Reliance India P Ltd and Mahanagar Gas Ltd.:ITAT