Case Law Details
Re AREVA T&D India Limited (AAR) –
Providing information technology sharing services make available the technical knowledge and therefore taxable as fees for technical services under section 44DA of Income-tax Act in the presence of permanent establishment of a French company in India
The payments under the IT agreement were not in the nature of reimbursement as the preamble stated that the French company had the capacity and resources to provide and co-ordinate IT services. There was nothing on record from which it could be inferred that the transaction was in the nature of reimbursement. For providing services under both, the wide area network as well as the messaging system, some hardware was to be utilized.
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