Assessee, a US based company is\u00a0 subsidiary of SEPL India. Assessee-company procured focal sales orders in US for its AE for products to be manufactured, executed by SEPL India, and received payment from customers which was remitted to SEPL India.Assessee received certain sum as commission on sales and marketing services\u00a0 Assessing Officer held\u00a0 that payments received by assessee from SEPL India were in nature of FTS under section 9(1)(vii) and was chargeable to tax in India under article 12 with Indo-USA DTAA. On appeal the Tribunal held that the\u00a0 assessee, performed pure sales function with connecting potential customers from US by performing pre sales activity of introducing SEPL India to potential customers and rest of activity was predominantly taken care by SEPL India. The assessee did not render services resulting in provision FTS or make available technical knowledge to SEPL India. Accordingly\u00a0\u00a0 commission on sales and marketing services\u00a0 cannot be treated as FTS in hands of assessee in terms of section 9(1)(vii). (AY. 2013-14, 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Marketing services-Commission on sales-Subsidiary of SEPL India-Performed pure sales function by connecting potential customers from US by performing presales activity of introducing SEPL India-Not taxable in India-DTAA-India-USA[Art. 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":[21],"tags":[],"class_list":["post-50482","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-d8e","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50482","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=50482"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50482\/revisions"}],"predecessor-version":[{"id":53162,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50482\/revisions\/53162"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}