HPL Resorts (Maldives) Pvt Ltd v MIRA

In the case of HPL v MIRA, the Tax Appeal Tribunal held that reimbursement of expenses made under management agreements are not subject to WHT unless they are for a service specifically stated in Section 6(a) of the BPT Act.

The key point noted by the TAT is that a payment will attract WHT, not because of the type of agreement under which it is paid, but because of the nature of the underlying service.