Our client has availed services of its directors in the nature of consultancy services.But they have not deducted any TDS from it.The AO is saying that since the directors are the only shareholders of the company, they are having 'fixed base' in the form of company in India,hence the income is taxable under Article 15 of DTAA btwn India and USA.
Please advice whether the contention of AO is correct.Also tell me if there is any difference btwn PE and fixed base.Tell me about any case laws where the concept of fixed base has ben discuused in detail.
CAclubindia
