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The Tax Publishers Dimension Data Asia Pacific (P) Ltd. v. Dy. CIT [SA No. 72/Mum/2016, ITA No. 684/M/16, dt. 8-3-2016] : 2016 TaxPub(DT) 1624 (Mum-Trib) Stay petition in the case of disproportionate demand *Facts:* Assessee a non-resident based out of Singapore had provided management services to its entities in the Asia Pacific region (more so to Indian subsidiary). The employees of the assessee visited India for 9 days in relation to the management fees and 89 days for supporting BSNLs data center setup. There was no fee for the BSNL set up activity as it was reimbursement of costs of the employees who visited India. Assessing officer and DRP held that the assessee constituted a service PE in India thus assessed the income at 90% of 22.5 crores which was the management fee. This was in appeal while the department pestered for the recovery of tax. It was also contended that the management fee was subject to TDS in India while the assessees plea was that it did not make available any service in India. Thus stay application arose before the ITAT: Held that the TDS impact on this was only 10% while the demand by the department was 9.8 crores. This was an unconscionable amount thus stay was granted.

The Tax Publishers

Dimension Data Asia Pacific (P) Ltd. v. Dy. CIT [SA No. 72/Mum/2016, ITA No. 684/M/16, dt. 8-3-2016] : 2016 TaxPub(DT) 1624 (Mum-Trib)

Stay petition in the case of disproportionate demand

Facts:

Assessee a non-resident based out of Singapore had provided management services to its entities in the Asia Pacific region (more so to Indian subsidiary). The employees of the assessee visited India for 9 days in relation to the management fees and 89 days for supporting BSNLs data center setup. There was no fee for the BSNL set up activity as it was reimbursement of costs of the employees who visited India. Assessing officer and DRP held that the assessee constituted a service PE in India thus assessed the income at 90% of 22.5 crores which was the management fee. This was in appeal while the department pestered for the recovery of tax. It was also contended that the management fee was subject to TDS in India while the assessees plea was that it did not make available any service in India. Thus stay application arose before the ITAT:

Held that the TDS impact on this was only 10% while the demand by the department was 9.8 crores. This was an unconscionable amount thus stay was granted.