Case Law Details
Shell Global Solutions International BV Vs DCIT (ITAT Ahmedabad)
Services Rendered Outside India by Non-residents to foreign clients of Indian Entity will not Fall under Deeming Provisions of Section 9 of Income Tax Act, 1961
The Ahmedabad bench of Income-tax Appellate Tribunal (herein referred to as “ITAT” or “Tribunal”) has recently held that where the services performed by a non-resident taxpayer outside India for foreign clients of an Indian entity for it business outside India and for those services the non-resident has also received payments outside India, such income cannot be deemed to accrue or arise in India. The tribunal has held that in the case of Shell Global Solutions International BV v. Deputy Commissioner of Income Tax, International Taxation-I [2023] 155 taxmann.com 242 (Ahmedabad – Trib.)[11-10-2023].
Facts of the case:
1. Shell Global Solutions International BV (herein referred to as “Assessee” or “Taxpayer”), an entity incorporated in Netherlands, was engaged in providing engineering services in relation to manufacturing of coal and gasification equipment to Larsen & Toubro (for sake of brevity referred as “L&T”).
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