Home » Alerts » Tribunal Broadens ‘Professional Services’ Scope Under India-Sri Lanka DTAA

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In a significant ruling, the Delhi Tribunal clarified that ‘professional services’ under Article 14 of the India-Sri Lanka DTAA encompass specialized services like spa consultancy. Consequently, payments to non-residents for such services aren’t taxable in India if the recipient doesn’t meet the 183-day presence requirement.

The Tribunal also emphasized that, per the Supreme Court’s decision in GE India Technology Centre, no tax deduction at source is necessary when the income isn’t chargeable to tax in India.

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