R.R. DONNELLEY INDIA OUTSOURCE PRIVATE LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE applicant, RR Donnelley India Outsource Private Limited (for short "RRD India?) is an Indian company, provides solutions in commercial printing, direct mail, financial printing, product customization, print fulfillment, forms and labels, logistics, call centres, transactional print and mail, print management, online services, digital photography, colour services. It also provides high end support services to the customers identified by its associated enterprises. It further provides data capture and processing services, transcription services, online transaction processing, shared accounting and financial transaction services, health care, insurance, advertising and call center services.

(2.) THE applicant has entered into a data processing services agreement with RR Donnelley Global Document Solutions Group Limited (RRD,UK) effective from 14.11.2006 for efficient discharge of its services to the customers. RRD, UK is a foreign company and is a tax resident of UK. It is engaged in the business of communications management - delivering creative and presentation services, pre -media, print management, transactional print and mail, warehousing, logistics and distribution, and data processing.

(3.) THE learned Counsel appearing for the applicant argues that the applicant provides solutions in commercial printing. No technology is involved. The applicant has a contract with a bank in UK for data capturing and processing. It is basically converting applications into readable form. The bank has an agent with the applicant. The applicant has contract with RRD UK for scanning and then sending the information to India. The service description given in schedule -I to the agreement to be rendered by RRD UK is as follows: