Income tax
dadibattini
(Querist) 16 May 2013
This query is : Resolved
Kindly help to answer the questions as my colleague's exam in coming Monday 20.5.13.Tks
1.. Discuss critically the provision relating to income which shall be deemed
to accrue or arise in India' particularly with reference to "business
connection in India" citing recent decisions of the courts in India .
adv. rajeev ( rajoo )
(Expert) 16 May 2013
S.9: Income deemed to accrue or arise in India – DTAA-India –USA Telecom engineering services – As contract for providing technical experts and making available expertise, hence held as fees for included services [Art 12(4b)]
The assessee was a US company specialized in providing highly qualified technocrats and technology relating to telecom sector and higher solutions in telecom engineering services. The assessee entered into an agreement with an Indian company for providing qualified technocrats for its project in India. It was held that as it was clear from various clauses of agreement that it was a contract for providing technical experts and making available expertise of assessee in this field, hence the service rendered assessee clearly fell within purview of clause 4(b) of Art 12 of Indo- US DTAA, and thus amount received in respect of said services was taxable in India as fees for included services. (A.Y. 2003-04)
