2014 (5) TMI 628

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....titutions or scholarly books. The applicant has appointed Ms Geetha Kumararaja (hereinafter referred to as "Ms Geetha"), a resident of Colombo, Sri Lanka and designated her as "Resident Executive" as per letter of appointment dated 31st May, 2011, with duties and responsibilities contained in communication dated 6th June, 2011 for a period of 12 months commencing on 1st June, 2011. She is being paid remuneration and reimbursement of expenses as per the said letter of appointment and is carrying on duties and responsibilities exclusively for the applicant as per the said communication dated 6th June, 2011. The monthly remuneration and reimbursement of expenses are set out in the said letter of appointment dated 31st May, 2011. These are remi....

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....under the income tax act, in India?         5) Whether on the facts and in the circumstances of the case and in the law payment of fixed sum to Ms Geetha in reimbursement for outstation tours conveyance, in addition to reimbursement of actual train/bus fare should be subjected to tax deduction under the income tax act, in India?          6) Whether on the facts and in the circumstances of the case and in the law, upon Ms Geetha being appointed as a regular employee on applicant's payroll, the salary and other payments made to her and paid into her bank account in Sri Lanka will be subjected to tax deduction under the income tax act, in India? 3. It was submi....

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....ng to marketing development, brand image enhancement and establishment of Oxford University Press and a respected brand in the minds of teachers, students and University in Sri Lanka. By virtue of the contract of retainship, it is clear that the income of the recipient is not chargeable under the head 'salaries'. It is submitted that payment will be deemed to accrue or arise in India according to the express provision of section 9(1) of the Act. 5. We have considered the rival contentions of both the applicant and the Revenue. There is no dispute regarding the services rendered by the applicant, details of which are given both at the time of application and in the course of hearing. The job descriptions of Ms Geetha are as under:- Job....

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....itor's product. * To use reporting tools efficiently in order to maintain & update information on the SMART OUP. * To communicate regularly with the centre for effective reporting. 6. On examination of the details we are of the view that the services rendered are basically for promotion of sales and brand name of the applicant in Sri Lanka. They are basically sales promotion. 7. As per the appointment of Ms Geetha, she was designated as resident executive for Sri Lanka operating from Colombo. The job description fits in more with a marketing executive than anything else. There is no definition of technical services in India-Sri Lanka Tax Treaty and, therefore, in order to examine whether the payment is fees for technical service....