Hewelett Packed India Software Operation P.Ltd In, re ( 2018) 401 ITR 339/162 DTR 337 301 CTR 12(AAR)

S. 192: Salary – Deduction at source – Non-Resident — Employees rendering services on deputation at USA and Germany on assignment basis – Not liable to tax in India as services were rendered there hence not liable to deduct tax at source -DTAA- India – USA- Germany [ S. 2(45) 4, 5(2), 9(i)(ii), 90, 192 , 195,Art. 25 , 23 ]

AAR held that , employees of Indian company sent on assignments to render services in U. S. A. and Germany to companies ,income earned from services rendered in those countries chargeable to tax there, and not in India, during period of assignment hence the Indian company is not liable to deduct tax on salaries paid in India . Employees residents of those Countries and liable to tax on their worldwide income in those countries for period of their assignment Income did not accrue in India and not chargeable to tax in India .