INCOME TAX

Expenditure-tax--Whether World Bank Mission Staff are exempt--Clarification regarding.

Circular No. 637

Dated 2/9/1992

Under the provisions of section 5 of the Expenditure-tax Act, 1987, any expenditure incurred by persons within the purview of the Vienna Convention on Diplomatic Relations, 1961, or the Vienna Convention on Consular Relations, 1963, is not to be considered as a chargeable expenditure for the levy of expenditure-tax. The Board has been advised that this exemption is available to the officials of all International Organisations to which the provisions of section 18 of the Schedule to the United Nations (Privileges and Immunities) Act, 1947, apply. Under this section, Diplomatic Missions and their personnel and the World Bank Mission staff staying in hotels on official duly are covered. The expenditure incurred by such persons is, therefore, not to be considered as a chargeable expenditure under the Expenditure-tax Act, 1987.

(Sd.) M.N. Dikshit,

Director (OT),

Central Board of Direct Taxes