Tribunal holds that participation by a non-resident celebrity in a product launch event outside India, targeted for the Indian market, triggered business connection for him.
Recently, the Mumbai bench of the Income-tax Appellate Tribunal held that the income earned by an international celebrity for appearance/ participation in a product launch event outside India, for which all the benefits accrued to the payer in India, constituted an intangible business connection of the non-resident in India, and was taxable in India. Thus, the Indian payer (taxpayer) was obligated to withhold taxes on such payment under section 195 of the Income-tax Act, 1961.
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