REFERRAL FEE TO FOREIGN COS NOT TAXABLE IN INDIA, RULES AAR

Giving relief to companies that procure clients on referral basis, the Authority for Advance Ruling (AAR) had held that fee paid to overseas clients will not be subject to taxes in India. The AAR while giving a ruling in a reference made by Singapore based real estate consultant held that the receipt on account of the referral fee arising to the applicant would not be taxable in India.