9911796707
TMI Blog1996 (2) TMI 559X X X X Extracts X X X X X X X X Extracts X X X X ..... nies in India and to be in the process of acquiring more than ten per cent. of the shares of certain other companies in India. "The Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion (DTAA) with respect to taxes on income and on capital gains" between the Government of the Republic of India and the Government of the United Arab Emirates, which came into force on September 22, 1993, makes a provision for the avoidance of double taxation in respect of dividends paid, by a company in one of the two countries, to a recipient in the other country. This provision, in so far as it is relevant for our purpose, reads as under (see [1994] 205 ITR (St.) 57) : "Article 10 Dividends: (1) Dividends paid by a company which is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication. The objection is that as there is no company law or law regarding corporations in the UAE, and the applicant is only a trade name for an individual XYZ who owns the business of the applicant and that since this individual was resident in India in the financial year 1994-95 within the meaning of section 6(1)(a) of the Act, this application is not maintainable as a ruling under Chapter XIX-B of the Act can be sought for only by non-residents. The first question that arises for consideration is, therefore, whether the applicant is a company or an individual. If the applicant is treated as a company within the meaning of the Act, then its control and management being entirely located in the UAE, it will be a non-resident company and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant would have been resident in India for that financial year, if his stay in India during that period was for 182 days or more. The applicant has furnished the dates of its physical presence in India during the above financial year. The details are as follows: STAY IN INDIA DURING THE FINANCIAL YEAR 1994-95 Sl. No. Entry Exit No. of days 1. 01-04-1994 07-04-1994 7 2. 15-04-1994 16-04-1994 2 3. 21-04-1994 24-04-1994 4 4. 05-05-1994 11-05-1994 7 5. 20-05-1994 08-06-1994 20 6. 13-06-1994 02-07-1994 20 7. 07-07-1994 08-07-1994 2 8. 20-07-1994 16-08-1994 28 9. 20-08-1994 21-08-1994 2 10. 28-08-1994 15-09-1994 19 11. 26-09-1994 16-10-1994 21 12. 26-10-1994 28-10-1994 3 13. 03-11-1994 05-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 94 13-12-1994 4 17. 14-12-1994 19-12-1994 5 18. 21-12-1994 04-01-1995 14 19. 05-01-1995 11-01-1995 6 20. 17-01-1995 31-01-1995 14 21. 04-02-1995 24-02-1995 20 22. 18-03-1995 19-03-1995 11 Total 187 For the applicant it is said that it would be absurd to say that he was in India for 198 days when he was out of India for 187 days as per his calculation as a year consists of only 365 days. It is not possible to accept the contention put forward on behalf of the applicant. The calculation relevant for the purposes of section 6(1)(a) of the Act is that of the number of days during the previous year on which the applicant was present in India. For this purpose, the days on which the applicant entered India as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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