2016 (9) TMI 344

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....Education, USA. The said party has entered into an agreement with one Northwest Universal Education Private Ltd. It is claimed by the applicant that it is a non-profit public benefit corporation formed for the purposes of providing education. The School of Management which is known as UCLA Anderson School of Management is a college affiliated and running under the umbrella of the applicant and that college provides executive education programs. 2. By an agreement dated 22.9.2014, the applicant agreed to launch a Management Program for duration of 60 days which would train the senior executives of the companies/corporations having a minimum working experience of 8 years. In short the applicant agreed to send its professors for training th....

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....enue's version, they do not seem to have a serious objection to the fact that the activity of the applicant is an educational activity and is directly covered under Article 12(5)(C) of the of the Treaty between India and USA. 5. The Revenue however, objects and contends that this amounts to business within the meaning of Article 7 of the Treaty and the applicant has a Permanent Establishment (PE) in India, hence the income will be treated as business income and hence would become taxable. 6. We have in earlier Ruling dated 9.3.2016 dealt with a similar, if not identical subject, that was an application made by UC Berkeley Center for Executive Education, USA. The questions were identical. In that, we had held that since the nature of t....

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....ndeed there is none in India. It is to be seen that every time the program is undertaken in India, it is Northwest which has arranged for the place for conducting the programs. Northwest need not every time arrange for a same place. It may happen that Northwest may arrange different location for conducting the program. On this ground also there cannot be any fixed place of business on the part of the applicant. Therefore, on both the counts namely on the question of business and on the question of PE, the contention of the Revenue is unacceptable to us. 9. Haltingly, the learned representative of the Revenue raised the question of Royalty also. We have referred to this objection only for rejecting the same as what the applicant does is t....