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Authority rules overseas fees not taxable in India

March 05, 2010

An Indian authority has ruled that the assignment of rights and obligations is not taxable in India in the absence of a permanent establishment (PE).

The Authority for Advance Rulings (AAR) held that the amount of consideration received by Laird Technologies India, an electronic component manufacturer, from its US operations is not subject to Indian tax as stated by the double tax agreement between the two countries.

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