CASE STUDY III - Refund of taxes for an engineering and consulting company based in Austria, dealing with refractories

The company was undertaking a turnkey contract for technical assistance and supervision of the construction of a magnesium sinter plant in India, for an Indian major. The company’s global advisors opined that 30% tax was deductible from the fees receivable in India. SKP was asked to provide an opinion on the appropriate withholding tax in India on technical fees and royalties received from the Indian major.

The SKP team studied and researched the case in detail and submitted an opinion stating non-taxability of the income received from India (over US $1.5 mln) which was endorsed by leading counsel and the client’s Austrian advisers. SKP also assisted the client in filing suitably revised tax returns in India and obtained a refund of the entire tax withheld in India.