Treatment of technical expenses when being reimbursed to head office of a non-resident enterprise by its branch office in India

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.... deduction of head office expenditure in the case of non- residents. It defines "head office expenditure" to mean executive and general administrative expenditure incurred by the assessee outside India, including certain specified expenditure. The Board had occasion to examine the treatment to be given to technical fees being remitted to the head office of a non-resident enterprise by its Indian b....

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....other hand, if the fees are paid to a resident of a country with which there is no tax treaty then the payment will be taxable in accordance with the provisions of section 115A read with section 44D of the Income-tax Act. 3. The above position will hold good when the technical services are provided by a third party and the payment is made by the permanent establishment in India to the head office....