Benteler Automative (China) Investment Limited Vs ACIT (Bombay High Court)
Bombay High Court held that managerial and technical services provided from China to India through virtual means constitutes service rendered in India. Accordingly, rejection of application seeking NIL withholding tax based on pending assessments before ITAT justifiable.
Facts- By this Petition, filed under Article 226 of the Constitution of India, the Petitioner seeks a declaration that the consideration received/receivable by the Petitioner from its Indian subsidiary, Benteler India Private Limited, pursuant to the Service Agreement entered into between them, is not taxable in India. Consequently, a relief is also sought to quash and set aside the impugned order dated 1st August 2025 passed by Respondent No.1 rejecting the Petitioner’s application for “NIL withholding tax” Certificate and for a direction to the Respondents to issue a “NIL deduction of tax at source” Certificate under Section 197 of the Income Tax Act, 1961 as prayed for by the Petitioner in its application dated 1st July 2025. The Petitioner also seeks a declaration and/or a direction to the Income Tax Authorities to grant a refund to the Petitioner of the amount of tax deducted at source (TDS) by Benteler India pursuant to the above-mentioned Service Agreement.
