Taxability of income received by foreign company for procurement support services rendered by its Indian office to other foreign company

AAR held that income received by a foreign company for procurement support services rendered by its Indian office in connection with purchase operations undertaken by other foreign company in India, is taxable in India. Recently, the Authority for Advance Ruling (AAR) in the case of Aramco Overseas Company BV [2010-TIOL-14-ARA-IT] held that a non resident, who is neither the purchaser of the goods nor an agent of such purchaser purchasing goods for the purpose of export to the holding company outside India would be liable to tax in India. It was held that clause (b) of the explanation 1 to sec...