Syed Shah Mohammed Quadri, J. - In this application under section 245Q(1) of the Income-tax Act, 1961 (for short "the Act"), the applicant - M/s. Wallace Pharmaceuticals Private Limited - seeks advance rulings of this Authority on the following three questions:-

a.Whether applicant is required to deduct tax at source in respect of the monthly payments (consultancy fees $ 10000) made to consultant whose office and area of operation is situated in U.S.A. [As per agreement dated 1st March, 2004 - Copy of Agreement Attached].

b.Whether applicant is required to deduct tax at source in respect of commission payable @ 10% on the orders procured by the consultant to the applicant.

c.Whether applicant is required to deduct tax at source in respect of the reimbursement of payments made to, "Consultant" who had engaged/engages the services of professionals for rendering services to the applicant from time to time. [copy of bill dated 8th November, 2004 attached]

2. The applicant is engaged in the manufacture and sale of Pharmaceuticals products. With a view to expand its business, it entered into an agreement with Penser Group (a limited Company incorporated in USA) - Penser - on 1st March,