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TMI Blog1999 (1) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... yawahare RULING Mr. Stanley Keith Kinnett, the applicant in this case, is a citizen of the U.S.A. holding an American passport. He is employed by Whirlpool Corporation (WC), a company incorporated under the laws of the U.S.A. and is a resident of that country. This company has got a 100 per cent. subsidiary by the name of Whirlpool India Holdings Limited which is also incorporated under the laws ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore to be treated as a non-resident for the pur poses of the present application. The applicant has stated that he gets his remuneration from the U.S. company, Whirlpool Corporation (WC). The letter of appointment to him was given by WC. The remuneration is paid to him in terms of his contract of employment with the assessee. Expenses borne in India by the subsidiary company are reimbursed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... employer in India. Article 16 of the DTAA between U.S.A. and India has dealt with "salary" in the following manner (see [1991] 187 ITR (St.) 102, 119) : "Article 16. Dependent Personal Services : (1) Subject to the provisions of articles 17 (Director's fees), 18 (Income earned by entertainers and athletes), 19 (Remuneration and pensions in respect of Government service), 20 (Private pensions, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not exceeding in the aggregate 183 days in the relevant taxable year ; (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State ; and (c) the remuneration is not borne by a permanent establishment or a fixed base or a trade or business which the employer has in the other State. (3) Notwithstanding the preceding provisions of this article, remun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of payment of the remuneration was actually borne by a permanent establishment or a fixed base or trade or business located in India. Therefore, all the conditions laid down in article 16(2) are fulfilled by the applicant on the basis of facts as stated by him. The questions, therefore, will have to be answered in the following manner. "In view of the specific provisions of article 16 of the Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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