1. Both the above two applications M/s Endemol India Private Limited (EIPL) are in relation to payment made to the same company incorporated and a tax resident of Brazil namely Utopia Films. The facts and questions raised in both the applications are also similar except in the case of application No.1082 the services are line production services and in application No.1081 the payments are for line production services for stunts. In both the applications the disputes are under convention between the Government of Republic of India and the Government of Federative Republic of Brazil for the avoidance of Double Taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains (hereinafter referred to as India-Brazil Tax Treaty). The applications are disposed of by a common order for the sake of convenience.

2. The Endemol India Pvt. Limited (the Applicant) is a resident company incorporated under the Companies Act, 1956. It is engaged in the business of producing and distributing television programs. It mainly produces reality shows and has also ventured lately into soap operas. The applicant started stunt operations in 2006 with the non-fiction format show Bigg Boss (Big Brother) and also has other reality shows in India such as Fear Factor - Khatron Ke Khiladi etc. During the financial year 2010-11 the Applicant had produced the reality show ' Khatron Ke Khiladi - Series-3' i.e. India's version of Fear Factor which was aired on Colors channel. As per the format of the program/show, the shooting took place outside (primarily in Brazil). For the purpose of shooting the program/show, outside India, the applicant engaged Utopia Films which is a company incorporated in Brazil and is a tax resident of Brazil, for providing line production services and for providing line producer, local crew for providing stunt services, transport necessary for stunts for production of the show in Brazil. The contract agreement dated 3.8.2010 was signed between the applicant and the Utopia Films for the purpose.

3. As per the aforesaid agreement the following services are provided by Utopia Films to the applicant for the program/show:

(a) Arranging for crew and support personnel as may be requisitioned;

(b) Arranging for props and other set production materials'

(c) Arranging for safety, security and transportation;

(d) Arranging for filming and other equipments as may be requisitioned.

4. The anchor and the participants of the show are engaged and paid separately by the broadcaster and is not the responsibility of Utopia Films. Accordingly, there is no payment made by Utopia Films in this regard.

5. Utopia Films would provide the entire scope of services to the Applicant outside India. Utopia Films has been engaged for a particular season of a reality TV series and there is no continuity of relationship.

6. As per the agreement, the Applicant has paid towards the line production services provided by Utopia Films. Further, the taxes (if any) applicable in respect of the payments to be made to Utopia Films were to be borne by the Applicant.

7. Presenting the above facts, the applicant seeks ruling from the Authority on the following questions:—

(1) Whether the payments made by the applicant to Utopia Films for availing the line production services under the terms of the agreement would be in the nature of Independent Personal Services ('IPS') within the meaning of the term in Article 14 of 'Convention between the Government of Republic of India and the Government of the Federative Republic of Brazil for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains' ('India-Brazil Tax Treaty')?

(2) On the facts and circumstances of the case, given that the India-Brazil Tax treaty does not contain a specific Article for the taxation of Fees for Technical Services ('FTS'), would the liability to tax, if any, of the consideration paid to Utopia Films in respect of the line produc