NO TAX ON FOREIGN TELCOS FOR CARRYING CALLS ABROAD: AAR

The Authority for Advance Ruling (AAR) has ruled that the foreign telecom firms operating without a permanent establishment in India are no more required to pay any tax on income from carrying international calls and data services in pacts with domestic operators. Giving a ruling on an application from Cable & Wireless Networks India which proposed to enter a pact with the UK arm of the same parent company, AAR said that in the absence of there being any permanent establishment of C&W Uk in India, this income is not at all taxable here.