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1996 (10) TMI 485 - AAR - Income TaxWhether the applicant will qualify as a technician in accordance with section 10(5B) of the Act ; and accordingly. Whether, the taxes paid by the employer of the applicant would be exempt from taxation under section 10(5B) of the Act, for a period of fortyeight months commencing from the date of arrival in India ?
Issues:
1. Qualification as a technician under section 10(5B) of the Income-tax Act, 1961. 2. Exemption of taxes paid by the employer under section 10(5B) for a specified period. Detailed Analysis: Issue 1: The applicant, a non-resident in India during the relevant financial year, sought a ruling on whether he qualifies as a "technician" under section 10(5B) of the Act. The provision defines a technician as a person with specialized knowledge and experience in certain operations. The applicant, despite lacking formal technical education, has over 35 years of experience in construction, planning, and cost engineering for industrial plants. His job responsibilities in India demonstrate the utilization of specialized knowledge and experience, making him eligible as a technician under the Act. Issue 2: The second issue pertains to the exemption of taxes paid by the employer for the applicant under section 10(5B) for a specified period. The applicant's employer paid Indian income tax on the remuneration for services rendered in India. As the applicant meets the criteria of a technician under section 10(5B) and the tax was paid by the employer, the taxes would be exempt from taxation for a period of forty-eight months from the date of his arrival in India. The Advance Ruling Authority, considering the applicant's qualifications and job responsibilities, ruled in favor of the applicant on both issues. The authority held that the applicant qualifies as a technician under section 10(5B) and that the taxes paid by the employer would be exempt from taxation for the specified period. The ruling provided clarity on the applicant's tax liabilities and entitlements under the Income-tax Act, 1961.
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