Home Case Index All Cases Income Tax Income Tax + AAR Income Tax - 2011 (12) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (12) TMI 17 - AAR - Income TaxDouble taxation Agreements - Meaning of fees for technical services (FTS) - allocation of cost - the Applicant will incur cost in providing various operational and other support services for the benefit of group companies by drawing its own resources as well as on those available from other Group Companies or third parties and will invoice the cost incurred for providing such services on cost to cost basis without charging any mark up. The employees and other personnel engaged by the Applicant for providing these services will not visit India. - held that:- the applicant is taxable under Article 12.5(a) and as also under Article 12.5(b) - the payment made by Perfetti India would be chargeable to tax in India. - As the applicant is liable to tax in India, it is required to file a tax return under the provisions of the Act and the transfer pricing provisions of sections 92 to 92F would be applicable in respect of the payment to be made by Perfetti India.
|