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TMI Blog2013 (12) TMI 1169X X X X Extracts X X X X X X X X Extracts X X X X ..... the format of the show, the shooting was to take place outside India (primarily Brazil). For the purpose of shooting the show outside India, the Applicant engaged Noise Associates to procure the services of Ms. Chantal Prud' Homme as an executive producer for the show. 2. An agreement was signed between M/s. Noise Associates Private Limited (hereinafter referred to as 'NAPL'), a company incorporated under the laws of Singapore and having its registered office at 350, Orchard Road, Park Ave Suites #11-26 / 27, Shaw House, Singapore 238868 and the applicant, Endemol India Private Limited (Endemol) on 1st June 2010. NAPL is a tax resident of Singapore. As per the terms of the agreement, NAPL is responsible for the overall production and also for handling business issues. The agreement also provides that NAPL will provide specialized services to Endemol to aid in the production of Endemol Show programmes for which NAPL agreed to commission its representative to Ms. Chantal Prud' Homme who is an executive producer for the Endemol India Private Limited shows/programmes). As per the agreement the applicant was to pay a total consideration of US Dollar 49,000 to NAPL for their services f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verall production of the programme and for that purpose the services of Ms Chantal Prud' Homme was commissioned. Ms. Chantal Prud' Homme was to supervise and to ensure that the programme being produced by the applicant was commenced and completed on time as per the agreed proposal. She was not involved in the technical aspects of production of the programme. She prepared production schedule and ensured that the same was followed and she was a point of contact between talent and the production unit. 5. According to the learned AR of the applicant, the services obtained by the applicant from NAPL were merely support services and routine in nature in relation to the show/programme and did not involve any professional or technical experts. The NAPL also did not perform any function on behalf of the applicant and therefore, the payment for the services is not covered under FTS definition. The learned AR submitted that the NAPL being a resident company of Singapore, the payment is covered by the India Singapore Tax Treaty. Definition of the term 'Fees for Technical Service' on the said treaty being narrower than the provision of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment is that the applicant did not give documentary evidences indicating the exact nature of services provided and failed to satisfactorily substantiate the specific nature of services provided by NAPL. The invoice copies provided by the applicant do not fully illustrate the nature of the services rendered. In the course of the hearing, the learned AR of the applicant simply stated that the relevant evidences were already submitted before the Assessing Officer. In his final submission dated 27th September, 2013 the learned AR stated that detailed submission have been filed on 15 July, 21 August and 27 August, 2013. We do not find any material evidences to show the specific services rendered by NAPL apart from the submission made by the learned AR. We have noted that the agreement dated 1.6.2010 between NAPL and the applicant clearly states that NAPL will provide specialized services to Endemol to aid in the production of Endemol's shows/ programmes for which NAPL has agreed to commission its representative Ms. Chantal Prud' Homme as an executive producer of Endemol India Private Limited's shows/programmes." The services may be in the nature of supervision as contended by the AR of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment (PE) in India. It was stated that NAPL does not have any office in India and none of its employees visited India for providing the services. It was submitted that in the absence of PE of NAPL in India, the payments made to NAPL are not taxable under Article 7 of the India-Singapore Tax Treaty. The AR cited following judicial precedents in support of the submissions: 1.1 Dun and Bradstreet Espana S.A., In re (272 ITR 99) (AAR) 1.2 Fidelity Advisor Series VIII (271 ITR 1) (AAR) 1.3 Morgan Stanley & Co. International Ltd (272 ITR 416)(AAR) 10. The Department simply stated that the payment made to NAPL for procuring services under the terms of the agreement is squarely covered under the definition of FTS as per India-Singapore Tax Treaty and there is no requirement of having PE for this purpose. 11. Article 7 of the India-Singapore Tax Treaty states: "The profits of an enterprise of a Contacting State shall be taxable only in the State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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