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1997 (10) TMI 393 - AAR - Income TaxWhether charges payable by TISCO to the applicant for work carried out by the applicant under the agreement in its office at Johannesburg, South Africa, including preparatory studies before each field visit, detailed under serial No. 3 of Appendix “B” of the agreement, are income liable to income-tax under the Income-tax Act, 1961 ? If so, at what rate ? Whether the consultancy fees to be received by the applicant from TISCO under the agreement as detailed under serial No. 2 of Appendix “B” of the agreement is income on which income-tax is payable under the Income-tax Act, 1961 ? If so, at what rate ? Is there any obligation on the part of TISCO to deduct at source, from the sums payable under the agreement to the applicant towards technical and consultancy fees, income-tax under the Income-tax Act, 1961, and, if so, to what extent and at what rate ? Can TISCO make payment to the applicant of the technical fees/charges in South Africa for the work to be done or services to be rendered in South Africa ? Will that be considered as an income deemed to accrue or arise in India ? Will tax be levied on such income ? If yes, then whether income-tax has to be deducted at source on such payment made in South Africa, and at what rate ? A daily living allowance as detailed in Appendix “B” of the draft agreement will be paid by TISCO to the foreign technicians of the applicant. Since the same do not fall within the purview of a perquisite, will tax be levied on such an allowance ? India does not have a Double Taxation Avoidance Agreement (DTAA) with South Africa. Hence, what rate of tax shall be applicable to the technical and consultancy fees paid in India by TISCO to the applicant under the agreement ?
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