Services rendered outside India -- Income accruing or arising outside India

Facts: 

Assessee a US entity was providing cloud related data services to Infosys India for servicing its customer McDonald's in USA. Payments were made by Infosys to assessee for these services from India. It was the case of the revenue that these were incomes that arose or accrued from India and were also thus taxable under article 12(4) of Indo-US DTAA hence taxable in India. CIT(A) held it against the revenue for which revenue went in higher appeal to ITAT -

Held in favour of the assessee basing their earlier year verdict that no incomes arose in India, hence not taxable in India.

Income exclusion clause of 9(1)(vii) will cover payments made by Infosys to the assessee.

Ed. Note: The transaction structuring is worth noting.

Case: ITO v. Sungard Availability Services LP 2023 TaxPub(DT) 535 (Pune-Trib)