Law:

Section:

Section 9 of the Income-tax Act, 1961, read with article 13 of the Double Taxation Avoidance Agreement between India and UK - Income - Deemed to accrue or arise in India - Applicant is an Indian company engaged in providing consultancy services such as chartered accountancy and management studies - It is one of member entities of Ernst & Young Global (EYG) which has such member entities in various countries - All member entities including applicant use brand name 'EY' and adopt international practices followed by EY organization worldwide for providing consultancy services to their clients - EMEIA is a British company which has been formed specifically to facilitate objective of providing support in various fields such as area, global and market development, etc., to all members of EY organization so that they may gain access to standardized human, financial and other resources to ensure that consistent and high quality professional services are provided to client base of all members of EY organization - Such support is provided from UK and it does not have any permanent establishment or fixed base in India - Under agreement, costs incurred for providing services are allocated to EY member entities and they reimburse such costs to EMEIA, UK - Whether dissemination of information, furnishing guidelines and suggesting plans of action aimed at uniformity and seamless quality in business dealings of participating group entities would per se amount to making available to them technical knowledge and experience possessed by EMEIA to a substantial extent - Held, no - Whether, therefore, amounts receivable by EMEIA from applicant under agreement are not liable to be taxed under Act as fee for 'included services' or as business profits, having regard to provisions of DTAA between India and UK - Held, yes FACTS The applicant is an Indian company engaged in providing consultancy services such as chartered accountancy and management studies. It is one of the member entities of Ernst & Young Global (EYG) which has such member entities in various countries. All member entities including applicant use the brand name 'EY' and adopt international practices followed by…

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