1. The applicant is a Company based in United States of America which is engaged in the business of manufacture of process control instruments, engineering and research and technology based services, co-operative or consortium services etc. The applicant entered into an Agreement titled as Cost Allocation Agreement with Invensys India (P.) Ltd. (for short "IIPL"), which is part of the Invensys Group. This Company was incorporated in India on 19-12-1996. The applicant incurs expenditure in relation to the functions enumerated in Schedule I to the said Agreement for the benefit of the Group as a whole. Pursuant to the Agreement the applicant raises invoice on IIPL for the amounts worked out on the basis of the formula in the Agreement. It is stated that none of the personnel of the applicant visited nor would in the future visit India for providing the centralized assistance to IIPL.

2. On these facts stated in the application, the applicant seeks advance ruling on the following two questions :

"1.On the facts and in the circumstances of the case whether the payment made by IIPL towards the costs allocated by the Applicant is taxable in India as per the provisions of the Double T