S.9(1)(i): Income deemed to accrue or arise in India –Business connection- Service rendered abroad-
Deduction at source-DTAA-India- UK-Poland- Brazil-Canada-Australia- Business profit- Assessee was not
liable to deduct tax at source from said payments and Assessing Officer was not liable to deduct tax at source,
hence the assessee cannot be treated as in default under section 201. (S.9(1) (vii), 195, 201)
Assessee company was engaged in business of production of films, shooting of which was often done outside India. For shooting films outside India, its production unit used to go abroad and services required in connection with work of shooting abroad were availed from various overseas providers. The assessee made payment to five such overseas service providers for services availed in connection with shooting of different films. It was held that the services rendered by overseas service providers would not fall within ambit of technical services as given in Explanation 2 to section 9(1) (vii) instead they were in nature of commercial services and amount received for such services constituted business profit. (AY 2005-06 & 2006-07)
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