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2014 (5) TMI 628 - AAR - Income TaxRequirement to deduct TDS - India-Sri Lanka DTAA - Monthly remuneration of retainer fees for services rendered – Reimbursement of various expenses – Held that:- The services rendered are basically for promotion of sales and brand name of the applicant in Sri Lanka - they are basically sales promotion - Ms Geetha was designated as resident executive for Sri Lanka operating from Colombo - The job description fits in more with a marketing executive than anything else - Fees for technical services is defined in explanation 2 to section 9(1)(vii) of the Act - The services rendered by Ms Geetha do not fall under any of the items mentioned in the explanation namely, managerial, technical or consultancy services - The services rendered by her are not technical services as defined in the Act - the payment made to Ms Geetha is not taxable either under the Act or the India-Sri Lanka Tax Treaty - the payments falls under Article 14 of the India-Sri Lanka Tax Treaty and even on that account the same is not taxable in India - Regarding the reimbursement of expenses, they are directly linked with her services in Sri Lanka for the applicant – the reimbursement of the expenses will also not be taxable in India under the provision of the Act or under India-Sri Lanka Tax Treaty – Decided in favour of Assessee.
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