Monday, August 5, 2013

Dy. CIT (IT) v.ReutersTelevision Ltd.(2013) 55 SOT 235 (Mum.) (Trib.)

S.9(1) (vii): Income deemed to accrue or arise in India - Fees for technical services –Royalty-Television news
services- DTAA-India-Matter remanded. (Art 13 )

Assessee, a tax resident of UK, is engaged in business of providing television news services including audio-visual feed together with textural scripting information, desktop library services, etc. Assessee received certain amount for rendering 'location special' service to customers in India. According to assessee 'location special' was a service wherein a customer requested assessee to film a particular event, meeting, etc., and, thus, payment was in respect of services for producing a television film - Which did not quality as royalty or fees for technical services under article 13 of Indo-UK treaty. Assessing Officer, however, took a view that amount received for rendering said service was covered as 'fees for technical services' under section 9(1) (vii) (b) read with Explanation 2. Tribunal held thatin absence of relevant material as well as agreement on record in terms of which assessee had rendered services and received payment, it was not possible to determine real nature of activity carried out /services rendered by assessee. Therefore, matter was to be remanded back for disposal afresh remanded. (A.Y. 2001-02)


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