International taxation

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Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2012 i have a client for whom we provide 15 CB as applicable u/s 195.
The client has taken services in the nature of smses. i.e a company situated outside India( not having permanent establishment in India) provides bulk sms service facility to my client to the people in India as well as people in UAE.
Will the remittance for this service be taxable in India u/s 195?

Arihanth Jain

Arihanth Jain (Expert)

29 June 2012 The service may be taxable.
For example in case of FTS, PE is irrelevant to decide on taxability.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2012 Sir , could you pls further elaborate on the taxability of service i.e under which clause and how?

Arihanth Jain

Arihanth Jain (Expert)

03 July 2012 Country of NR?

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2012 The country that provides service to my client is UAE

Arihanth Jain

Arihanth Jain (Expert)

03 July 2012 UAE treaty does not have any specific article on FTS. As such referred income shall be covered under Article 7 - Business Profits read with Article 5 - PE. As there is no PE, the income is not liable to tax in India.

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