INCOME TAX ACT, 1961

Section 9(1)(vii)

Income deemed to accrue or arise in India - Under section 9(1)(vii) - Fees for technical services - Amount received by non-resident assessee from Indian entity being reimbursement of salary paid to seconded employee

Assessee based at France, received a sum of Rs. 47 lakhs by way of reimbursement of salary cost of expatriate, who was seconded to Indian entity. AO taxed the amount received by assessee as 'fees for technical services'.Held: Non-resident assessee had no role to play with rendition of services by employee seconded to Indian entity except that a part of salary payable by Indian entity was initially paid by assessee in France which was later on recovered without any profit element, thus, reimbursement received by assessee from Indian entity was not in the nature of fees for technical services under section 9(1)(vii).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12

INCOME TAX ACT, 1961

Section 9(1)(vii)

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