Syed Shah Mohammed Quadri, J. (Chairman) - (1.) 1. In this application under Section 245Q(1) of the Income-tax Act 1961 (for short "the Act"), UAE Exchange Centre, LLC, having its registered office in Abu Dhabi, UAE, through its liaison office in Kochi (Kerala), seeks advance ruling of this Authority on the following question : "Whether any income is accrued/deemed to be accrued in India from the activities carried out by the company in India ?"
(2.) The applicant is a limited liability company incorporated in the United Arab Emirates (UAE). It is engaged in offering, among others, remittance services for transferring amounts from UAE to various places in India. It was granted licence by the Reserve Bank of India (RBI) for the purpose of setting up liaison offices in India for undertaking only the following approved activities. (i) Undertaking reconciliation of bank accounts held in India with correspondent banks under Draft Drawing Arrangement ; (ii) Acting as a communication centre receiving computer advices of mail transfer from UAE and transmitting to Indian correspondent banks ; (iii) Printing drafts and dispatching the same to the addresses ; (iv) Following up with the Indian correspondent banks. The applicant set up its first liaison office in Kochi, Kerala (India) in January, 1997. At present, the applicant has liaison offices in Chennai, New Delhi, Mumbai and Jalandhar in India.
(3.) THEY are carrying on the activities strictly in terms of the conditions specified by the RBI. The entire expenses of the liaison offices in India are met exclusively out of funds received from UAE through normal banking channel. The liaison offices undertake no activity of trading, commercial or industrial nature. No immovable property is acquired, transferred or disposed of in India (otherwise than by way of lease) by the applicant/liaison offices. No fee/ commission is charged or received in India by any of the liaison offices for services rendered in India. It is claimed that no income accrues or arises or deemed to accrue or arise directly or indirectly through or from any source in India to the liaison offices within the meaning of Section 5 or 9 of the Act.;