Tax on foreign facilitators

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2016 I want to know what is tax liability of the Clinic/ Hospital under Income tax/ DTTA if a foreign patient is referred by foreign facilitator and fees/ commission is paid to facilitator through foreign remittance if the facilitator is not having any office in India for these referral. Please support the solution with the appropriate section under the act.

Thanks

Guest

Guest (Expert)

19 February 2016 Since the facilitator does not have a permanent establishment/business connection, no income deem to accrue / arise in India under section 9

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2016 I was told that there is changes made by Tax in 2015 and saw it also in act that, according to which PE in India is now not the criteria to have exemption claimed. Please advice.

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Guest

Guest (Expert)

20 February 2016 No. Even under DTAA if there is no PE, there is no tax.

Guest

Guest (Expert)

20 February 2016 No. Even under DTAA if there is no PE, there is no tax.

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2016 Do we have to take documents from foreign party to prove their residence/ business place for this purpose i.e. Tax Residency certificate or any other document will be sufficient like Passport/ DL/ IT return etc.

Guest

Guest (Expert)

22 February 2016 You have to get Tax residency certificate and declaration from him that there is no PE, get form 15CA from Auditor, file form 15CB with department.