Case Law Details
Citation : SET Satellite (Singapore Pte Ltd.) Vs. ADIT, ITA No. 7349/Mum/2004
Court: Income Tax Appellate Tribunal, Mumbai
In a recent case of SET Satellite Singapore Pvt. Ltd. the Income Tax Appellate Tribunal, Mumbai (“ITAT”) has held that royalty payments made by a resident of Singapore to another Singaporean entity, as consideration of rights to transmit and broadcast matches etc. in India, are not subject to Indian withholding tax requirements. The ITAT in this case relied on Article 12(7) of the India-Singapore Tax Treaty (“Treaty”), which provides that royalty payments will be considered to arise in India, only if the royalty is paid by a resident of India or incurred in connection with its permanent establishment (“PE”) in India and such royalty is borne by such PE.
Tribunal Ruling: Royalty paid by a non-resident does not arise in India if there is no economic nexus between a permanent establishment of the non-resident and the royalty paid [Set Satellite (Singapore) Pte. Ltd. – I.T.A. No. 7349/Mum/2004].
Facts:
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An organization is a propriotary concern.
Tax is not being deducted from any payment. However consultancy payment is being received net of TDS. In such a case is it necessary to obtain TAN.
While applying for Refund is TAN is necessary?