Court : Authority for Advance Rulings
Reported in : (2005)198CTRAAR417
In Re: Abdul Razak A. Meman; In Re: UAE Exchange Centre LLC, 2004 268 ITR 9 (AAR); In Re: Sutron Corporation, 2004 268 ITR 156 (AAR) Double taxation relief--Agreement between India and UAEApplicant an individual non-resident UAE nationalHeld: Since there is no tax regime for individuals in UAE they are not covered by the expression "resident of a Contracting State" as contained in article 4(1) of the DTAA between India and UAE as such, the applicant is not entitled to claim the benefit of the DTAA, in view of article 4(1) of DTAA between India and UAE.Income deemed to accrue or arise in India--Under section 9(1)(i), Expln. 2Business connectionThe applicant, owned by a non-resident UAE national, is based at Dubai, UAE and as per law prevelant there, its legal status is "individual establishment". It is an agent of "GVB", a group of foreign companies. The applicant has proposed to set up communication channels in India, termed as "Liasion offices" (LO) to provide information of technolo...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (2005)198CTRAAR195
Indian Companies Act, 1956; Income Tax Act, 1961 - Sections 5(2), 9 and 245Q(1); Finance Act, 2005 - Sections 7, 9, 9(1) and 195 Income deemed to accrue or arise in India--FEES FOR TECHNICAL SERVICESServicesThe applicant is the owner of mines. It is engaged in prospecting and extraction of minerals, metals, ores, etc. It is carrying on business of exporting minerals. For the purpose of its business, the applicant gets the analysis of samples and ores conducted from technical lab of the consultant-Met-Chem, Canada Inc. Under the agreement between the applicant and the consultant, the material required to be analyzed and tested in the laboratory in Canada in respect of specific contents has to be sent to the consultant who will send reports to the applicant from time-to-time. For technical services rendered outside India the consultant s lab fees were required to be paid by the applicant in dollars in Canada. Fee is paid by the applicant, to the consultant for rendering of technical con...
Tag this Judgment!Court : Authority for Advance Rulings
Justice Syed Shah Mohammed Quadri The applicant, a company registered under the Indian Companies Act, 1956, and a tax resident of India, filed this application under section 245Q(1) of the Income-tax Act, 1961 (for short the Act). The applicant is the owner of mines. It is engaged in prospecting and extraction of minerals, metals, ores, etc. It is carrying on business of exporting minerals. For the purpose of its business, the applicant gets the analysis of samples and ores conducted from technical lab of the consultant - Met-Chem, Canada Inc.. Under the agreement between the applicant and the consultant the material required to be analyzed and tested in the laboratory in Canada in respect of specific contents has to be sent to the consultant who will send reports to the applicant from time to time. For technical services rendered outside India the consultant and the lab fees are required to be paid by the applicant in dollars in Canada. However, the technical consultants will also vis...
Tag this Judgment!Court : Authority for Advance Rulings
Justice Syed Shah Mohammed Quadri In this application under section 245Q(1) of the Income-tax Act, 1961 (for short the Act), the applicant M/s Wallace Pharmaceuticals Private Limited seeks advance rulings of this Authority on the following three questions:- a. Whether applicant is required to deduct tax at source in respect of the monthly payments (consultancy fees $ 10000) made to consultant whose office and area of operation is situated in U.S.A. [ As per agreement dated 1st March, 2004- Copy of Agreement Attached]. b. Whether applicant is required to deduct tax at source in respect of commission payable @ 10% on the orders procured by the consultant to the applicant. c. Whether applicant is required to deduct tax at source in respect of the reimbursement of payments made to Consultant who had engaged/engages the services of professionals for rendering services to the applicant from time to time. [copy of bill dated 8th November, 2004 attached] 2. The applicant is engaged in the ma...
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