TaxTMI 
TaxTMI 
1999 (8) TMI 964
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....ich is a wholly owned subsidiary of ALLTEL Information Services Inc., USA ("AIS"). AIPL is engaged in the business of developing and providing telecommunication services in India. It has entered into an Operational Support Services agreement ("OSS") with Hughes Ispat Limited (HIL), an Indian company, which has been awarded a contract for rendering telecommunication services in the Maharashtra telecom circle. Under the OSS agreement, the following services would be rendered by AIPL : * Systems integration ; * Development of software ; * Maintenance of software supplies sourced from both AIS and third party vendors ; * Information services ; * Disaster recovery ; and * Sub-contractor management. The applicant is in India to assist AIPL....
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...., 1994-95, 1995-96 and 1996-97. As per the agreement dated November 10, 1998, entered into with the applicant, the employer-company (AISIH) has undertaken to bear all Indian taxes arising on the compensation to be paid to the applicant for his services in India. An individual claiming exemption under section 10(5B)must satisfy the following four conditions : (i) He must be a "technician" as defined in the Explanation ; (ii) He must be in the employment of one of the several entities set out in the clause or in any business carried out in India ; (iii) He must not have been resident in India in any of the four financial years immediately preceding the financial year in which he arrived in India ; and (iv) The taxes on his salary income ....
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.... has the necessary resources to provide specialised personnel. Even though AIPL is also engaged in the business of developing and providing telecommunications related services, it being a newly incorporated company was in need of specialists to assist itself in carrying on its business efficiently. Therefore, AIPL entered into an agreement for deputation of specialists with AISIH as a result of which the applicant has been seconded to AIPL as telecom manager to assist AIPL in rendering services to HIL as agreed upon under the OSS agreement. The applicant has filed a detailed resume outlining his qualifications and experience. But he did not produce any certificate regarding his educational qualifications. He stated that he had not brought t....
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....tate call center operations along with conversion and implementation of a variety of support systems. He has over 14 years of experience with ALLTEL in the field of plant operations and has held service center/call center positions which have resulted in his developing a strong foundation of technical and administrative knowledge in both wireline and wireless operations. He has held responsibilities as supervisor and manager of wireless call centre quality and development and customer service department in the ALLTEL group. A certificate issued by AIS regarding previous work experience of the applicant within the ALLTEL group has also been furnished. It will be seen that in view of his knowledge and experience he is eminently suitable for t....
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....ee of specialised knowledge and experience. The applicant's entitlement for being treated as a technician is beyond question. The applicant's contention that he is a "technician" within the meaning of section 10(5B) of the Income-tax Act, 1961, read with the notification dated July 27, 1993, has not been opposed by the Department. The only objection raised by the Department is that since the applicant is an employee of a foreign company he is not eligible for exemption under section 10(5B) of the Act. The position in this behalf was considered at great length by the authority in the case of Robert W. Smith, In re [1995] 212 ITR 275 (AAR). In that case, it was held that the applicant, who is employed in any business carried on in India woul....