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2009 (6) TMI 21 - AUTHORITY FOR ADVANCE RULINGSDTAA – Mauritius Tax Treaty – Section 5 and 44BB of the IT Act – Article 7 of the treaty - Applicant is a foreign company undertaking contract for laying pipelines under the sea and constructing the structures inclusive of pre-commissioning of the pipelines – whole contract divided into parts i.e. activities wholly performed in India, activities wholly performed outside India and activities partly in India and partly outside India – Held that the applicant cannot be said to have permanent establishment within the meaning of Article 5 read with Article 5.2(i) of the DTAA between India and Mauritius. When there is no permanent establishment, the question of taxing any part of the business profits in India does not arise. It is not contended and it cannot be contended that payment received by the applicant under the contract constitutes ‘fee for technical services’. Whatever technical services are provided, they were only integral to the performance of the project work – No income is taxable in India.
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