9911796707
TMI Blog2021 (2) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... Such employees are on a split payroll arrangement under which part salary is paid by the Applicant in India and part of the salary is paid by the host entity in the host country bank account of such employees. For administrative convenience and ease of disbursement of salary of such seconded employees, the Applicant effects appropriate part payments to such employees in India on behalf of the other BMW Group Entities. The Applicant deducts tax on the portion of the salary paid to the seconded employees in India, irrespective of whether the employees ore taxable in India or not. Il has been submitted that such employees are also liable to pay taxes in the host country as the employees were rendering services in the host country. 2. The App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents in India? 2. The residential status in India of the employees in the year of return would likely be Resident and Ordinarily Resident. Accordingly, whether the applicant while deducting Income tax at source under Section 192 of the Act may take credit for the taxes paid in the host country for Ms. Vaishali Ahuja and Mr. Vikrant Singh, as per Article 32 (2) of the India-Japan DTAA for Ms. Vaishali Ahuja and Article 32(2) of the India Germany DTAA for Mr. Vikrant Singh who are likely to qualify as Resident and Ordinarily Resident in the year of return to India? 3. The Revenue has raised an objection to the admission of this application. Ms. Radha Narang, Ld. DR for the Revenue submitted that the Applicant has filed Form 34D which is fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication may not be admitted. 4. Mr. Rajan R Vora. the Ld. AR of the Applicant submitted that the transaction was not at all designed for avoidance of tax and a ruling was being sought by the Applicant on the question of deduction of tax at source under Section 192, taking into account the foreign tax already paid by the concerned individual employees in the host country. The Applicant was only asking for a ruling on allowability or eligibility of claiming a credit to avoid double taxation in the light of the fact that the taxes were already paid by the employees in the host country. It was further submitted that the objections raised by the Department had no bearing on Admission of 'he present application at they in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revenue that the transaction was designed prima facie for avoidance of tax. When the Applicant is merely enquiring about its obligation to deduct TDS or otherwise under section 192 of the Act, it cannot he said that the transaction was for avoidance of tax. 6. The objection of the revenue that there was no clarity of the residential status of the seconded employees is also not correct. There residential status con be ascertained from the period of stay outside India as mentioned in Annexure-I of the application. The first question raised in the application is for A.Y. 2020-21 when both the seconded employees were non-resident. The second question pertains to the year in which they return to India and would qualify as Resident & ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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