https://www.taxtmi.com/caselaws?id=211903 For a non-resident governed by a tax treaty, royalty and fees for technical services are taxable on receipt basis rather than accrual basis where the treaty so provides. Reimbursements for SAP licence charges and remote access services, not shown to be incurred for earning royalty or technical service income, are not automatically taxable receipts in India absent a permanent establishment. By contrast, reimbursements of travelling expenses incurred in performing the services form part of gross receipts where the treaty taxes such income on a gross basis and no deduction of expenses is contemplated. The note also states that surcharge was not payable under the treaty rate structure and interest under section 234B was not leviable where tax was deductible at source. en-us Fri, 17 Feb 2012 00:00:00 +0530 Mon, 09 Apr 2012 08:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211903 For a non-resident governed by a tax treaty, royalty and fees for technical services are taxable on receipt basis rather than accrual basis where the treaty so provides. Reimbursements for SAP licence charges and remote access services, not shown to be incurred for earning royalty or technical service income, are not automatically taxable receipts in India absent a permanent establishment. By contrast, reimbursements of travelling expenses incurred in performing the services form part of gross receipts where the treaty taxes such income on a gross basis and no deduction of expenses is contemplated. The note also states that surcharge was not payable under the treaty rate structure and interest under section 234B was not leviable where tax was deductible at source. Case-Laws Income Tax Fri, 17 Feb 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211903