Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (9) TMI 344 - AUTHORITY FOR ADVANCE RULINGS NEW DELHI

2016 (9) TMI 344 - AUTHORITY FOR ADVANCE RULINGS NEW DELHI - [2016] 387 ITR 398 - Income chargeable to tax in India as ‘fees for included services’ - Program Fee received - India-US DTAA - PE in India - Held that:- The activity of the applicant cannot be said to be a business activity particularly because the applicant is registered in USA as a non-profit public benefit corporation formed for the purpose of providing education. This is not disputed by the Revenue. If the applicant is registered .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

has arranged for the place for conducting the programs. Northwest need not every time arrange for a same place. It may happen that Northwest may arrange different location for conducting the program. On this ground also there cannot be any fixed place of business on the part of the applicant. Therefore, on both the counts namely on the question of business and on the question of PE, the contention of the Revenue is unacceptable to us. - The program fee is held to be non-taxable as there is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

id party has entered into an agreement with one Northwest Universal Education Private Ltd. It is claimed by the applicant that it is a non-profit public benefit corporation formed for the purposes of providing education. The School of Management which is known as UCLA Anderson School of Management is a college affiliated and running under the umbrella of the applicant and that college provides executive education programs. 2. By an agreement dated 22.9.2014, the applicant agreed to launch a Mana .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hwest was to arrange the place for conducting these short duration programs in India. It is also clarified that relationship between the applicant and Northwest would be neither of independent contractor nor a joint venture nor would it be of the nature of employment agency or partnership. The applicant has raised questions regarding the taxability of the consideration that the applicant earns from Northwest for holding these educational programs. 3. The questions posed are as under:- Que.1 Whet .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Applicant in India, viz., teaching for 7 days, would constitute a Permanent Establishment ( PE ) of the Applicant in India in terms of Article 5 of the India-US Double Tax Avoidance Agreement? 4. As per the Revenue s version, they do not seem to have a serious objection to the fact that the activity of the applicant is an educational activity and is directly covered under Article 12(5)(C) of the of the Treaty between India and USA. 5. The Revenue however, objects and contends that this amounts .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

educational activity, it could not amount to fees for included services or at any rate Royalty particularly because of the provision of Article 12(5)(C). The question regarding PE had propped up in that application also on which we took a view that the applicant in that case could not be said to have a PE, particularly in view of the earlier Ruling of this Authority in AAR No.1037 of 2011 dated 20th September,2013 Eruditus Educational Private Limited Vs. DIT International Taxation, Chennai. 7. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

non-profit benefit corporation in USA then its activities i.e. providing education cannot be said to be business activity of the applicant. The reliance of Revenue, therefore, on Article 7 of the Treaty is completely uncalled for as Article 7 specifically deals with business income. 8. Similar is the case of the plea regarding the PE of the Applicant in India. Viewed from any angle there cannot be a PE as defined in Article 5 of the Treaty as indeed there is none in India. It is to be seen that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version