Payment to be made by Perfetti India for the cost to be allocated by the applicant is taxable under Article 12.5(a) and as also under Article 12.5(b) of the DTAC between India and The Netherlands – AAR
Re- Perfetti Van Melle Holding B.V., Netherlands (AAR) – Applicant seeks advance ruling on the following questions:-
1. On the facts and circumstances of the case whether the payment to be made by Perfetti Van Melle India Private Limited (‘Perfetti India’) for the cost to be allocated by Perfetti Van Melle Holding BV (‘the Applicant’) will not be taxable in India in the hands of the Applicant as per the provisions of the Double Taxation Avoidance Agreement (‘DTAA’) entered into between India and The Netherlands?
2. If the answer to the question 1 is negative, on the facts and circumstances of the case whether the cost to be allocated by the Applicant on Perfetti India will not be in nature of income and not chargeable to tax in India?
3. On the facts and circumstances of the case, if the Applicant is not taxable in India for the costs to be allocated to Perfetti India, whether Perfetti India will not be liable to withhold taxes under section 195 of the Act on the payments to be made by Perfetti India towards the cost to be allocated by the Applicant?
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