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2012 (8) TMI 465 - AUTHORITY FOR ADVANCE RULINGSIndia-Mauritius DTAA – chargeability to tax of the proposed transaction of sale of shares of GSKAPL, the Indian company, to GSK Pte. Singapore by applicant company being Mauritius resident and part of GSK group – Held that:- It is observed that shares were held by the applicant from the year 1996 and were held as an investment. Hence, it is ruled that the shares held would be considered as ‘capital asset’ Taxability of capital gains arising from transfer of shares in India – Held that:- Proposed sale will generate a gain that would qualify to be capital gains under the Act. However, capital gains that would arise would not be chargeable to tax in India in view of paragraph 4 of Article 13 of the DTAC between India and Mauritius. Applicability of transfer pricing provisions from Section 92 to Section 92F – Held that:- Section 92 to section 92F will be attracted since there is an international transaction between related parties. Whether that exercise is needed or would be fruitful is a different matter. Hence, Sections 92 to 92F would apply if the transaction is one coming within those provisions. Liability to withhold taxes u/s 195 – Held that:- Since there is no chargeability to tax in India there will be no obligation on the applicant to withhold tax u/s 195 Requirement to file return of income u/s 139 – Held that:- Since the income is not taxable in this country, under the Act, there is no obligation on the applicant to file a return of income u/s 139 Applicability of provisions of Section115JB – Held that:- Section 115JB overrides section 34 to 48 of the Act. Application of Section 115JB(1) is not confined to domestic companies alone, it would equally apply to a foreign company
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