TMI Blog2014 (2) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... ll not be taxable without Permanent Establishment in India - the payment will not suffer withholding of tax under section 195 of the Income-tax Act, 1961. - A.A.R. Nos. 1081 &1082 of 2011 - - - Dated:- 19-2-2014 - Dr. Arijit Pasayat and Mr. T.B.C. Rozara, JJ. For the Appellant : Mr. Rajan Vora, CA,SRBC Asso. Mr. Ashish Gupta, Mr. Sachin Shah, CA, SRBC Asso., Mr. Aditya Modani, CA, Ms. Priyanka Minawala For the Respondent : Mr. RS Rawal, CIT-DR (AAR), New Delhi, Mr. Raj Kumar, ACIT-II(I), Mumbai RULING Both the above two applications M/s Endemol India Private Limited (EIPL) are in relation to payment made to the same company incorporated and a tax resident of Brazil namely Utopia Films. The facts and questions raised in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... razil and is a tax resident of Brazil, for providing line production services and for providing line producer, local crew for providing stunt services, transport necessary for stunts for production of the show in Brazil. The contract agreement dated 3.8.2010 was signed between the applicant and the Utopia Films for the purpose. 3. As per the aforesaid agreement the following services are provided by Utopia Films to the applicant for the program/show: (a) Arranging for crew and support personnel as may be requisitioned; (b) Arranging for props and other set production materials (c) Arranging for safety, security and transportation; (d) Arranging for filming and other equipments as may be requisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , would the liability to tax, if any, of the consideration paid to Utopia Films in respect of the line production services under the agreement be governed by Article 7 of the Indi-Brazil Tax Treaty, which deals with taxation of business profits? 3) Whether the payments made by the Applicant to Utopia Films in respect of provision of equipment and services by Utopia films in Brazil would be in the nature of Royalty within the meaning of the term as per Article 12 of the India-Brazil Tax Treaty? 4) Whether the payments made by the Applicant to Utopia Films for availing the line production services under the terms of the agreement would be in the nature of Other Income within the meaning of the term in Article 21 of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reserved for consideration the question whether the transaction is designed for avoidance of tax in India. The applicant was also directed to take out notice of the application alongwith the copy of the admission order on Utopia Films and file an affidavit affirming service of such notice on Utopia Films. No Objection Certificate from Utopia Films was accordingly filed. 9. According to the applicant the payment made to Utopia Films outside India for line production services and line production services for stunts as per the agreement do not fall within the purview of Fees for Technical Services (FTS) as per Explanation 2(2) section 9(1)(vii) of the IT Act or Royalty as per Explanation 2 of 9(1)(vi) of the Income-tax Act. It was also sub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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