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

Permanent establishment status determines withholding tax concession eligibility despite services not being connected to the PE. The withholding tax concession inquiry turns on the existence of a Permanent Establishment (PE) in India: if a PE exists, whether specific services under a procurement agreement are connected with that PE does not change the statutory focus on PE presence. Terms of the agreement and the remittee's documentation may supply factual clarity relevant to Form 1CB and withholding compliance.