TMI Blog2023 (1) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... filed, wherein subject income was offered for tax at 4%. Mr Jolly says, that intimation under Section 143(1) of the Act has been issued. What is, in substance, the issue, is: whether the subject income earned by the petitioner can be treated as Fees for Technical Services (FTS), as is contended by the respondents/revenue. Concededly, the Double Tax Avoidance Agreement obtaining between India and UAE does not contain any article concerning FTS. The petitioner, who is a non-resident and does not have a PE in India, claims that the subject income is business income. It is because of these varying stands, that a dispute arose with regard to the rate at which withholding tax had to be pegged. Thus, for the foregoing reasons, the rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration from the customers at lower rate of 4% during the pendency of present writ petition. 2. Notice in the writ petition was issued by the coordinate bench of this Court on 19.10.2022, wherein, inter alia, it was recorded that the petitioner seeks a direction for issuance of a certificate under Section 197 of the Income Tax Act, 1961 [in short, the Act ] as lower withholding tax certificate(s) under Section 197 of the Act had been issued in Financial Years (FYs) 2019-2020, 2020-2021 and 2021-2022. 3. Mr Sachit Jolly, who appears on behalf of the petitioner, has informed us that although the petitioner had sought issuance of certificates under Section 197 of the Act at Nil rate for the aforementioned FYs, the certificates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (FTS), as is contended by the respondents/revenue. 11. Concededly, the Double Tax Avoidance Agreement obtaining between India and UAE does not contain any article concerning FTS. 12. The petitioner, who is a non-resident and does not have a PE in India, claims that the subject income is business income. 13. It is because of these varying stands, that a dispute arose with regard to the rate at which withholding tax had to be pegged. 14. Thus, for the foregoing reasons, the rate of withholding tax, for the moment, will be pegged at 4%. 15. The respondents/revenue will issue a certificate under Section 197 of the Act as expeditiously as possible, though not later than two weeks from today. 16. Needless to state, the afore ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
