AAR held that payment received by the applicant from the Indian hotel owner for provision of global reservation services\u00a0 ( \u201cCRS\u201d) would be chargeable to tax in India under S.9(1)(1) read with articles 5 and 7 of the India -Luxemburg DTAA as business income and is attributable to the \u00a0applicant\u2019s permanent establishment in India. \u00a0In view of this the question whether these payments would be\u00a0 characterised as \u201c royalty\u201d or fees for technical services \u201c becomes wholly academic and is therefore , not considered necessary to be answered . AAR also held that \u00a0\u00a0duty of Authority to look at all aspects of questions set forth to enable it to pronounce ruling on substance of questions posed. Giving Ruling on stream of income without regard to other business operations and streams of income leaving other provisions open for regular assessment.<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(1) : Income deemed to accrue or arise in India \u2013 Permanent Establishment \u2013 Payment received by the applicant from the Indian hotel owner for provision of global reservation services ( \u201cCRS\u201d) would be chargeable to tax in India under S.9(1)(1) read with articles 5 and 7 of the India -Luxemburg DTAA as business income and is attributable to the applicant\u2019s permanent establishment in India. Duty of Authority to look at all aspects of questions set forth to enable it to pronounce ruling on substance of questions posed . Giving Ruling on stream of income without regard to other business operations and streams of income leaving other provisions open for regular assessment – DTAA-India \u2013 Luxembourg [ Art , 5,7 12, R.12 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1535","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-oL","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/1535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=1535"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/1535\/revisions"}],"predecessor-version":[{"id":2388,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/1535\/revisions\/2388"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=1535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=1535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=1535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}