Withholding Tax Concession for the purpose of Form 1CB

[JAYANTL AASHER]

Can the following be treated as NO PE Certificate from the foreign remittee for the purpose of withholding tax concession ?

We have a PE in India during the year but the services mentioned under Procurement Expense Agreement dt.......... are not connected with PE in India.

[Manoranjan Behera]

Hi

The conditions as envisaged in the provisions related to withholding tax says about having a PE in India. So the expenses incurred is related to the PE or not, does not make any difference. But terms of agreement may give some insights to give a clear view.

AI Summary

Foreign Remittee's Withholding Tax Concessions Depend on Permanent Establishment Status in India, Not Agreement Terms. A query was raised about whether a foreign remittee can be treated as having a 'No Permanent Establishment (PE)' certificate for withholding tax concessions when services under a Procurement Expense Agreement are not connected to a PE in India. The response clarified that the presence of a PE in India is the key factor for withholding tax considerations, regardless of whether the expenses are related to the PE. However, the terms of the agreement might provide further insights.