Benteler Automative (China) Investment Limited Vs ACIT (IT) (Bombay High Court)
Bombay High Court held that application for NIL withholding tax certificate rightly rejected since matter of taxability of fees for technical services [FTS] rendered from China for previous assessment years is already pending before ITAT. Accordingly, writ petition is disposed of.
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 is not taxable in India.
It is the Petitioner’s case that it is a company incorporated under the laws of China and a resident of China. Under the Service Agreement entered into by the Petitioner with Benteler India (its subsidiary), the Petitioner supplies technical services to Benteler India. It is conceded before us that any payment made by Benteler India to the Petitioner [for the supply of technical services] would be taxed in India under the provisions of the IT Act, and more particularly Section 9(1)(vii) thereof. According to the Petitioner, it has no “Permanent Establishment” in India, and hence, is not liable to pay any tax in India under Article 7 thereof, for the technical services provided by it to Benteler India.
