Whether income from referral services amount to fees for technical services – whether in absence of a PE, same could be taxed in India

AAR Ruling: Referral fee received from an Indian based recruitment agency by a non-­resident is not liable to tax in India in view of the provisions of India-UK Double Taxation Avoidance Agreement [Real Resourcing Limited (AAR No. 828 of 2009)]. Facts: Real Resourcing Limited (applicant), a company incorporated in United Kingdom (UK), was a tax resident of UK. The applicant proposed to render the following services in India: Recruitment services where the applicant would place a candidate with an Indian company; Referral services where the applicant would refer potential Indian clients to th...