Case nº AAR No. 493 of 2000 of Authority for Advance Rulings, March 07, 2001 (case In Re: Balu Doraisamy Vs)
|Judge:||Divya Baweja, Deepika Nigam and R.K. Lachhiramaka, Advs.|
|President:||D.P. Sharma, Mohini Bhussry and Suhas C. Sen|
|Defense:||Income Tax Act, 1961 - Section 10(5B)|
|Resolution Date:||March 07, 2001|
Mr. Balu Doraisamy is a resident of Singapore. He is employed with M/s. Compaq Computers India (P) Ltd. ("CCIPL") as managing director. Earlier he was with M/s. Compaq Computers Asia (P) Ltd. ("CCAPL") which is a subsidiary company of Compaq Group of Computers Corporation (COMPAQ), a US based company. It manufactures several ranges of notebook computers, which are subsequently distributed worldwide.
The Indian subsidiary was set up to market and distribute Compaq's products in India. As managing director, his responsibilities include overseeing the day-to-day operations of the company, accountability to the customers for the technical performance of the products and financial performance and well being as well as security of the employees of the company. It was also stated that his services are also utilised for checking the feasibility of new technologies in India, which would help in cost cutting and providing custom made computers and solutions.
The applicant has sought a ruling under s. 10(5B) of the IT Act, 1961 on the following questions.
(a) Whether the applicant will qualify as a "technician" in accordance with s. 10(5B) of the Act; and accordingly;
(b) Whether, the taxes paid by Compaq Computer Asia (P) Ltd., Singapore on behalf of the applicant would be exempt from taxation under s. 10(5B) of the Act, for a period of forty-eight months commencing from the date of arrival in India
The eligibility criteria under s. 10(5B) of the Act requires the applicant to be a technician, thereby meaning a person having specialised knowledge and experience in the fields referred to in the said section or such other field as the Central Government may specify by notification in the Official Gazette and who is employed in India in a capacity in which such specialised knowledge and experience are actually utilised. It is also essential that the applicant must not be resident in India in any of the four financial years immediately preceding the financial year in which he arrived in India Coming to the facts of the case, the applicant holds a master's degree in mathematics as well as master's in computer science. According to the jurisdictional CIT, he appears to have vast experience in the field of information technology. He also satisfied the residence...
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