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Yum Restaurant India unit V-P's services not taxable, rules Delhi ITAT

The case pertains to the agreement between the Yum Restaurants (Asia), the assessee and its Indian counterpart, where Vinod Mehboobani was deputed to India as the vice president (VP).

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The assessing officer held that technical services were being provided by the VP on behalf of the assessee company, hence the salary reimbursement was actually ‘Fee for Technical Services’ (FTS).

Dilasha Seth New Delhi

3 min read Last Updated : Jul 16 2020 | 2:47 AM IST

The income tax appellate body has ruled in favour of Yum Restaurants (Asia), which operates brands - KFC, Pizza Hut and Taco Bell - saying that the services of the vice president of its Indian counterpart are not taxable.

The case pertains to the agreement between the Yum Restaurants (Asia), the assessee and its Indian counterpart, where Vinod Mehboobani was deputed to India as the vice president (VP).

The assessing officer held that technical services were being provided by the VP on behalf of the assessee company, hence the salary reimbursement was actually ‘Fee for Technical Services’ (FTS).

However,

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