Whether World Bank Mission Staff and other international organisations are exempt

,Under the provisions of section 5 of the Expenditure Tax Act, 1987, any expenditure incurred by persons within the purview of the Vienna Convention on Diplomatic Relations, 1961 or the Vienna Convention on Consular Relations, 1963, is not to be considered as a chargeable expenditure for the levy of the expenditure tax. The Board has been advised that this exemption is available to the officials of all international organisations to which the provisions of section 18 of the Schedule to the United Nations (Privileges and Immunities) Act, 1947, apply. Under this section, Diplomatic Missions and their personnel and the World Bank Mission Staff staying in hotels on official duty are covered. The expenditure incurred by such persons is, therefore, not to be considered as a chargeable expenditure under the Expenditure Tax Act, 1987.

Circular : No. 637, dated 2-9-1992.


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Category : Income Tax (27495)
Type : Circulars (7761) Notifications/Circulars (31853)

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