Important ruling on the taxation of foreign companies carrying calls abroad

The authority for advance rulings in an application filed under section 245Q(1) of the income tax act, 1961 by the Cable & Wireless Networks India Private Limited has held that since, (a) the payments made by the applicant to its foreign partner are in the nature of business profits; (b) in the absence of there being any permanent establishment of the its foreign partner in India this kind of income is not taxable here.