9911796707
TMI Blog2013 (10) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... e Partnership Agreement with Ms. INSEAD, a tax resident company at Singapore which is in the business of providing various management education programmes globally. As per the Programme Partnership Agreement INSEAD is obliged to conduct teaching intervention as per the agreed terms while Eruditus , the applicant, shall assist in the marketing, organizing, managing and facilitating a conduct of the programme. The duration of the programme shall be 11 months and the teaching intervention to be conducted by INSEAD will be for a period of 30 days that will consist of in-class teaching on INSEAD global campuses in Singapore and France, in- class teaching in India and teaching through telepresence in Singapore in the manner set out in the agreeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Double Taxation and the Convention of fiscal evasion with respect to taxes on income' ("the India-Singapore Tax Treaty") and/or under the provisions of Section 9(1)(vii) of the Income tax Act, 1961? 2. Whether the recipient in the stated facts and circumstances, would have a Permanent Establishment ("PE") in India under Article 5(1) or 5(8) of the India-Singapore Double Taxation Avoidance Agreement ("Treaty") in relation to the activity of conducting in-class teachings through telepresence in India? 3. Based on the answers to questions (1) and (2) above and in view of the facts as stated in Annexure 1 whether the payments received by INSEAD are chargeable to tax in India? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical Services both under Section 9(1)(vii) of the Income-tax Act and Article 12(2)(4) of the DTAA with Singapore. In reply to the Revenue's contention, the applicant stated that the services rendered are neither managerial nor consultancy nor technical and the payment on the services cannot be brought to tax under the head "Fees for Technical Services" under section 9(1)(vii) of the Income-tax Act. It was submitted that at the most the payment for the service falls under the business profit and since the non-resident company namely INSEAD does not have any Permanent Establishment in India, no tax is chargeable under the Indian Income-tax Act or the India-Singapore Tax Treaty. However, the Department changed its stand vide the submission dt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion institution. Questions raised by the applicant are answered as under : (1) Whether the payments made by the applicant to INSEAD for various services under the terms of the programme partnership agreement is in the nature of "Fees for Technical Services" within the meaning of the term in Article 12 of the Convention between the Govt. of Republic of India and the Govt. of Republic of Singapore for the Avoidance of Double Taxation and the Convention of fiscal evasion with respect to taxes on income' ("the India-Singapore Tax Treaty") and/or under the provisions of Section 9(1)(vii) of the Income tax Act, 1961? Ans. As per Section 90(2) of the Indian Income-tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the Revenue that based on the facts stated, the recipient (INSEAD) does not have a Permanent Establishment in India and within Article 5(1) or 5(8) of the India-Singapore Tax Treaty. Que.3. Based on the answers to questions (1) and (2) above and in view of the facts as stated in Annexure 1 whether the payments received by INSEAD are chargeable to tax in India? Ans. The payments are stated toward the costs involved in the components of the Programme taught by INSEAT faculty. In view of our answer to Que. No.1 & 2 the payments received by INSEAD from the applicant on the stated facts and to the extent shown in the chart as "INSEAD Costs" are not chargeable to tax in India. & ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
