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| The Tax Publishers2019 TaxPub(DT) 1736 (Del-Trib) : (2019) 198 TTJ 0130 INCOME TAX ACT, 1961
Sectionn 9(1)(vii)
As evident from concerned buying agency services agreement, services rendered by non-resident assessee were purely in the nature of procurement services and could not be characterized as 'managerial', 'technical' or 'consultancy' services. Accordingly, consideration received by assessee was appropriately classified as 'commission' as against fees for technical services.
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Income deemed to accrue or arise in India - Fees for technical services - Buying agency commission -
Assessee, based at Hong Kong, received buying agency commission for sourcing of goods for Indian entities. AO held it as taxable in India as fee for technical services (FTS).Held: Services rendered by non-resident assessee were purely in the nature of procurement services and could not be characterized as 'managerial', 'technical' or 'consultancy' services. Accordingly, consideration received by the assessee was appropriately classified as 'commission' as against fees for technical services.
Followed:Linde AG v. ITO (1997) 62 ITD 330 (Mum-Trib) : 1997 TaxPub(DT) 1032 (Mum-Trib) and Adidas Sourcing Ltd. v. Asstt. DIT (International Taxation) (2013) 55 SOT 245 (Del-Trib) : 2013 TaxPub(DT) 303 (Del-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2004-05 & 2007-08
INCOME TAX ACT, 1961
Section 271(1)(c)
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