Analyse whether the following persons fall under the definition of "applicant" under section 245N(b)(A) to apply for advance ruling with the Board…
CA Final · Direct Tax Laws and International Taxation · PYQS · January 2026
Analyse whether the following persons fall under the definition of "applicant" under section 245N(b)(A) to apply for advance ruling with the Board for Advance Ruling under the Income-tax Act 1961. (i) TBF India Pvt. Ltd. a closely held Indian company needs to pay75 crores to BIK Inc. of USA for some services provided by BIK Inc. on 12.04.2024. TBF India wants to know whether such services fall under the definition of technical service and thus determine the amount of tax to be deducted on the payment to be made to BIK Inc. The estimated tax liability arising out of this transaction is 15 crores in the hands of BIK Inc.
Suggested Answer and Working Notes:
(i) TBF India Pvt. Ltd. would fall under the definition of applicant for advance ruling in relation to tax liability of BIK Inc. USA, being a non-resident arising for providing services to TBF India Pvt. Ltd. for determining whether such services fall under the definition of technical services and subject to tax deduction at source.
Topics: Advance Rulings
Related Questions in this Topic
- Explain the correctness or otherwise of the following statements giving proper reasons thereof: (i) Mr. Jatin, a residen...
- M/s XYZ Limited, an Indian company engaged in providing Engineering Consultancy Services, entered into negotiations with...
- Explain the nexus approach recommended by OECD in BEPS Action Plan 5 which has been adopted in the Income-tax Act, 1961.
- M/s Solar Ltd., an Indian public sector company, wants to seek advance ruling from the Board for Advance Rulings (BAR) i...
- Explain the correctness or otherwise of the following statements giving proper reasons thereof: Mr. Karan Malhotra, a r...