Case Law Details
Court : Authority for Advanced Ruling (AAR)
Citation : Bharti AXA General Insurance Corporation Ltd. (2010-TII-30-ARA-INTL) (AAR)
Brief : Authority for Advanced Ruling (AAR) held that payment for procurement of support services vis-a-vis business, marketing, information technology and strategy from foreign affiliate company are not Fees for Technical Services (FTS) and royalty within the meaning of Article 12 of the India-Singapore tax treaty (tax treaty).
Further, in the absence of Permanent Establishment of the foreign affiliate in India, the payment received by it cannot be taxed as business profits. Consequently, the applicant is not required to withhold tax under Section 195 of the Income-tax Act, 1961 (the Act) on such payment.
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