06 August 2020
What is the meaning of "Independent Personal Service' Article in DTAA? Please explain the meaning of this article in simple words, if possible with example.
06 August 2020
It's professional or consultancy services. Such services provided to other country is taxable based on residential status of the person rendering the service.
07 August 2020
Then if Resident of UK providing technical service to Indian Co. to inspect in a co. based in UK (Client of Indian Co.), whether TDS is required to be deducted by Indian Co.??
07 August 2020
No TDS applicable if such services rendered outside India by non resident for earning income outside India by the company.
The Gujarat High Court observed that the payments made by the taxpayer were for technical services provided by a non-resident. It was for providing services to be utilised for serving the taxpayer’s foreign clients. Thus, FTS was paid by the taxpayer for the purpose of making or earning any income from any source outside India. Accordingly, the source of income namely the taxpayer's customers were the foreign-based companies4 . Consequently, the tax was not required to be deducted on payment of such FTS.
07 August 2020
Thank you very much sir.. Can you please provide the case details as mentioned above? Which documents are required by Indian Co. to claim such expenses from non resident?
07 August 2020
. The Supreme Court in the case of GVK Industries Ltd5 while dealing with the exception under Section 9(1)(vii)(b) of the Act observed that such exception applies to a situation when fee is payable in respect of services utilised for business or profession carried out by an Indian payer outside India or for the purpose of making or earning of income from any source outside India.
Agreement copy and invoice copy are the documents required.
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