Accrual of income

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Souvik Kumar Ghosh (Querist)

26 January 2012 Payment made to foreign professional for by an indian company controlled from india- does it constitute income deemed to be accrued in india in the hand of the foreign professional, under the Income Tax Act?

Please mention applicale provisions or case law.

Regards

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 January 2012 If an Indian company makes payment to a foreign professional in/outside India towards his services rendered by him in India such income accrues and arise in India so it is taxable in the hands of foreign professional.
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In respect of services rendered outside India where even payment received outside is considered to be income deemed to accrue or arise in India provided he has been paid the fee for technical services. Please refer Section 9(1)(vii)(b) and its explanation (2).
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CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 January 2012 Please follow the link to read in a detailed manner-

taxguru.in/income-tax-case-laws/taxability-of-a-non-resident-for-charging-fees-for-services-rendered-to-indian-companies.html

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Souvik Kumar Ghosh

Souvik Kumar Ghosh (Querist)

26 January 2012 What is effect of DTAA with UAE in the above case?

Souvik Kumar Ghosh

Souvik Kumar Ghosh (Querist)

26 January 2012 What is effect of DTAA with UAE in the above case?

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)

26 January 2012 You can read Section 9 for clear reference and if the services have been used by a resident for any business other than outside India...it shall be taxable in India and the provisions of sec 195 too shall get attracted

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