1. The applicant, Oxford University Press, is an Indian branch of Oxford University Press, U.K., a Department of Oxford University U.K. It is engaged in publishing, printing and reprinting of educational books for schools, Universities, Professional and other educational institutions or scholarly books. The applicant has appointed Ms Geetha Kumararaja (hereinafter referred to as "Ms Geetha"), a resident of Colombo, Sri Lanka and designated her as "Resident Executive" as per letter of appointment dated 31st May, 2011, with duties and responsibilities contained in communication dated 6th June, 2011 for a period of 12 months commencing on 1st June, 2011. She is being paid remuneration and reimbursement of expenses as per the said letter of appointment and is carrying on duties and responsibilities exclusively for the applicant as per the said communication dated 6th June, 2011. The monthly remuneration and reimbursement of expenses are set out in the said letter of appointment dated 31st May, 2011. These are remitted to Ms Geetha's Bank account in Colombo, Sri Lanka from the Applicant's bank Account in India.

2. Presenting the above facts, the applicant seeks ruling of this Authority on the following questions:—

'(1) Whether on the facts and in the circumstances of the case and in law payment to Ms Geetha Kumararaja (hereinafter referred to as "Ms Geatha") in her bank account in Sri Lanka, of monthly remuneration of retainer fees for services rendered in 'Sri Lanka should be subjected to tax deduction under the income tax act, in India?

(2) Whether on the facts and in the circumstances of the case and in law fixed monthly sum paid to Ms Geetha in reimbursement of expenses on storage space, telephone and internet should be subjected to tax deduction under the income tax act, in India?

(3) Whether on the facts and in the circumstances of the case and in the law fixed monthly sum paid to Ms. Geetha in reimbursement of expenses for local conveyance should be subjected to tax deduction under the income tax act, in India?

(4) Whether on the facts and in the circumstances of the case and in the law payment of fixed sum to Ms. Geetha outstation tours towards Dearness Allowance for overnight stay outside Colombo should be subjected to tax deduction under the income tax act, in India?

(5) Whether on the facts and in the circumstances of the case and in the law payment of fixed sum to Ms Geetha in reimbursement for outstation tours conveyance, in addition to reimbursement of actual train/bus fare should be subjected to tax deduction under the income tax act, in India?

(6) Whether on the facts and in the circumstances of the case and in the law, upon Ms Geetha being appointed as a regular employee on applicant's payroll, the salary and other payments made to her and paid into her bank account in Sri Lanka will be subjected to tax deduction under the income tax act, in India?'

3. It was submitted that Ms Geetha is a resident of Sri Lanka and all the activities undertaken by her are entirely in Sri Lanka and no part of activities are to be taken by her in India. The role of Ms Geetha was basically marketing executive that involves promotion of sale of books published by the applicant. No managerial, technical or consultancy services are involved in her work and, therefore, provision of section 9(1)(vii) of the Income-tax Act, 1961(hereinafter referred to as the Act) is not applicable. It was further submitted that Ms Geetha is also entitled to claim the benefit of Article 14 of the DTAA in respect of income derived from her professional services and activities of an independent character. As per Article 14 of the India-Sri Lanka DTAA, her income is taxable only in the country in which she was rendering the services as a resident in Sri Lanka. Being resident of Sri Lanka and non-resident the remuneration received by her is not taxable in India both under section 5(2) and section 9(1)(vii) of the Act and Article 14 of the DTAA of India-Sri Lanka DTAA. I