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2023 (3) TMI 89 - AT - Income TaxIncome deemed to accrue or arise in India - ‘FTS’ or ‘FIS’ - taxing the reimbursements of salaries of expat employees made by Google India Pvt. Ltd. (GPIL) to the assessee - characterising such reimbursements as fees for “technical services” (FTS) as per Explanation 2 to Section 9(1)(vii) of the Act as well as “Fees for Included services” (FIS) as per Article 12(4) of the DTAA between India and USA (India-US Tax Treaty) - HELD THAT:- In light of the judgement of Hon'ble Jurisdictional High Court in the case Flipkart Internet (P.) Ltd. [2022 (6) TMI 1251 - KARNATAKA HIGH COURT] which was followed by Bangalore Tribunal in the case Biesse Manufacturing Company (P.) Ltd. [2022 (11) TMI 186 - ITAT BANGALORE] we hold that the amounts paid by GIPL to the assessee with reference to seconded employees does not come within the ‘FTS’ or ‘FIS’ under the Act or under DTAA.
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