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An Indian hospital wants to engage an Australian doctor for surgical works and consultancy services. For this, the Australian national will require to come in and stay India for which the Indian Hospital will make payment to him. He stays in UK and the payment will be required to be remitted to UK.
In this process, he may be required to stay in India during a previous year:
a)   more than 182 days or;
b)   less than 182 days

Under situation a); where he stays for more than 182 days in India he will become a "resident" in India under the Income Tax Act and the provisions applicable to a resident, will apply to him. In this case, DTAA with Australia or UK will not apply and the provisions of the Act will only apply. Also TDS will be made u/s 194J @ 10%, if PAN is available or 20% if no PAN is available.
Also, his other income which accrued or arises outside India will also be taxed in India for that relevant previous year.
Suppose, he stays in India for 200 days in previous year 2012-13 and remaining 100 plus days in UK or Australia then his Indian income as well as world income will be taxed in India for the FY 2012-13. He may get credit for taxes paid in Australia or UK as per DTAA in India.

Under situation b), DTAA with UK or Australia will come into play. Article 14 of DTAA with Australia and Article 15 of DTAA with UK contains the provisions related to 'Independent personal services'. Under Australia DTAA, income from fixed base in India will be taxed in India and withholding rate of tax will apply to such income. Another condition is that if he stays in India for more than 183 days then also such income will be subject to TDS in India. Under DTAA with UK, the former condition is similar whereas in the later condition, 183 days is replaced with 90 days. His other world income will not be subject to tax in India.

Is my understanding for both the situations correct; especially under situation a) where he will be liable for world wide income in India and that he will get credit  for taxes paid outside India?

Members may throw light on new angles which I have missed.
Thanks and regards
Sujit Talukder

Thanks for the reply.
This means if FTS is not covered under DTAA it will be construed as business income and as the organization has no PE in India, no TDS liability arises.

Thank you sir for the reply.
This means if my understanding is correct the FTS to Dubai company is taxxable under IT Act but not taxable under DTAA. so no tax is required to be withheld from the payment.
Is my understanding correct?
Also, is there any case law supporting the view in your knowledge..
Thanks and regards
Sujit Talukder

I have a query on TDS u/s 195. A company is required to pay fees for technical services (FTS) to another company in Dubai. The DTAA with UAE does not cover FTS payment. Also the Dubai company does not have any PE in India in any form, but the services for which FTS is paid will be utilized in India.
Now my query is whether TDS is required from FTS payment? I have been told that if a payment doesnot covered under DTAA then TDS is not required. In the given case, FTS is not covered in DTAA with UAE and therefore it will be treated as Business Income and fall under that clause of DTAA. Since for Business Income, PE in India is essential for TDS and in the absence of PE in India, no TDS is required.

Is this correct? or TDS is required to be deducted as 'Other Income' clause, keeping in view of amendments made by Finance Act  2010 in Section 9 by inserting/substituting the foloowing explanation-

[Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this section, income of a non-resident shall be deemed to accrue or arise in India under clause (v) or clause (vi) or clause (vii) of sub-section (1) and shall be included in the total income of the non-resident, whether or not,—

(i)  the non-resident has a residence or place of business or business connection in India; or

(ii)  the non-resident has rendered services in India.]

Please enlighten me on the topic and cases that supports the correct view.

Regards
Sujit Talukder

Thank you for the reply.

Dear Members,

I have a query on signing of Form 16. An employee of a company sign Form 16 for all the employees including himself.

For eg., Finance Manager or Tax Manager signs the form 16 of all the employees of the organisation.

Now, the query is:
Who will sign the Form 16 of that Finance Manager or Tax Manager? Whether he can sign self for his own Form 16?

Please clarify.

Regards
Sujit Talukder

Thank you Mr Majumdar for the reply.
No I am casual user as mentioned by you. The case laws required by me for doing official works only. Though taxpundit or google search serves the purpose most of the time only in certain cases I have to come to this forum. Anyway, if I need help then I will come here in future and I am sure people like you would help me to sort the out the matter.
regards
Sujit Talukder

you can find out the case laws on taxpundit.org

Satish

Thank you Satish for the reply. But the case law (and some others too) are not there in the mentioned site. Also only ITR/DTR/ITD is available and not CTR/SOT/TTJ/Taxman etc.
Any other site known to you?
Regards
Sujit Talukder

Thanks to duo for the text of the case.
May I know any online service or website which provides ITR/DTR/ wise etc. the case laws?
Regards
Sujit Talukder

[G. Rahguram (2010) 46 DTR 136 (Hyd.)]

Dear Friends,
Can anyone please provide the detail case law of the following:

G. Rahguram (2010) 46 DTR 136 (Hyd.)

related to Section  48 of Income tax Act,1961

I searched for the same but failed to found the same.

Regards
Sujit Talukder

Thank you Mr Majumdar for the reply and guidance.
Regards
Sujit Talukder

Thank you for the reply.
As you said the correlation is important. But in case where there are alrge number of certificates and deductors and various types of income are paid by them and also whre certain income is chargeable to tax and certain are not, it is possible to match Amount paid and Income shown in P&L a/c?
For eg., Rent is not subject to TDS upto Rs 180,000. No TDS on reimbursement like Electricity bill amount recovered from tenants, etc.
Can you throw some more light on it?
regards

Dear Members,

Is there any correlation between the Amount Paid as shown in TDS certificates issued by deductors and the income as shown in the P&L account?

What to do in case reconciliation statement is asked to make by the department to deductee?

On the basis of discrepancy between the same, the department has issued reassessment Notice u/s 148 and that too after the expiry of 4 years but within 6 years?

Is there any case laws on the same issue.
Your cooperation will be of immense help to me.

Regards
Sujit Talukder

Can you please tell what is last time period upto which reassessment u/s 147 can be opened under various provisions of IT Act?

Thanks for the reply.