IN RE: WALLACE PHARMACEUTICALS (P.) LTD. Vs. STATE

JUDGEMENT

(1.) IN this application under section 245Q(1) of the Income -tax Act, 1961 (for short "the Act") , the applicant - M/s. Wallace Pharmaceuticals Private Limited - seeks advance rulings of this Authority on the following three questions: -

(2.) THE Commissioner, in his comments, to the first question, submitted, inter alia, that if any services are not rendered or deemed not to be rendered in India by the non -resident consultants, there would be no liability to deduct tax at source on payments made by the applicant to the non -resident. However, if any services are rendered or deemed to be rendered in India, tax will be required to be deducted under section 195 of the Act and it is not clear from the said agreement dated 1st March, 2004 that such services rendered would not include services rendered in India as the area of operation is not clearly defined therein. The same comments are reiterated in regard to the other questions.

(3.) MR . J.A. Salvi, Addl. CIT, Panaji, Goa invited our attention to various clauses of the agreement of 1st March, 2004 and argued that services were rendered in India, therefore, the consultancy fee would be a taxable income of Penser in India and under section 195 of the Act would be applicable for TDS.