195- taxatability of non resident professionals

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This query is : Resolved

Pratik Vora (Querist)

28 June 2012 1. Whether definition of “ Professional Services ” under section 194J and “ Fees for technical services” as per section 9 (1) (vii) are mutually exclusive ? Whether definition provided under section 194J (machinery provision ) be used for section 9 which is chargeability section (Substantive provisions) ?

2. Whether services of lawyer and legal counsel are in the nature of “technical ,managerial or consultancy services”?

3. Whether services provided by professionals can be taxed as “ fees for technical services” under section 9 (1) (vii) if it is in the nature of technical ,managerial or consultancy in nature OR it can be taxed only if there is business connection in India as per section 9 (1) (i) of the Act, 1961?

4. If services of Brazilian law firm (Partnership Firm ) obtained to defend anti – dumping case in relation to export of goods, can it be said that source of income is outside India even after Delhi HC’s adverse judgment in case of Havells India?

sudarshan

sudarshan (Expert)

29 June 2012 1.any payment to NR should be seen wrt section 9 and DTAA

2.lawyer can get exemption under article independent personal services under DTAA

3.if professionals are providing consultancy they can also claim exemption as they dont make available any technology to indian co.

4.if Brazilian firm is defending from abroad they can claim exemption under independent personal services

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

15 November 2013 India Brazil DTAA has a unique Article on Independent Personal Services which allows the taxation of fees paid to lawyers based in Brazil by an Indian Company(present case)to be taxable in India.

Anuj
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