Home Case Index All Cases Income Tax Income Tax + AAR Income Tax - 1996 (8) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1996 (8) TMI 512 - AAR - Income TaxApplication of investor company (IC) - (a) Whether in view of the provisions of India-Mauritius double tax avoidance agreement, can it be construed that the applicant does not have a permanent establishment (PE) in India ? (b) Whether the applicant be liable to tax in respect of the management fees received from the CT ? (c) Whether the applicant be liable to tax in respect of the carried interest received from the CT ? (d) Whether there be a withholding tax liability on the CT, in respect of the payment of management fees and carried interest to the applicant ? Application of investment manager (IM) Whether the applicant would be assessed in respect of its proportionate share of income earned by the contributory trust as per the provision of section 161 of the Income-tax Act, 1961 (the Act) ? Whether the contributory trust would be regarded as a ‘see through’ or‘transparent entity’ vis-a-vis the applicant; i.e., to say, the applicant willbe taxed in respect of its proportionate share of income under section 161 of the Act ? Whether it is held that the provisions of section 161 do not apply to the incomeof the applicant from the contributory trust because of the power vestedin the trustees to add to the list of the beneficiaries on the terms laiddown in the indenture of trust and the contribution agreement, then ifsuch power is deleted, would the assessment of the applicant in respectof its proportionate share of income of the trust be made in accordancewith section 161 ? Whether if it is held that the shares of the additional beneficiaries are indeter-minate whether the capital gains arising to the applicant will be chargedto tax at the rate of 20 per cent. as prescribed in section 112 of the Act ? Whether will there be any tax withholding by the investee companies at the time of distribution of income to the CT ? Whether, on the facts and circumstances of the case,the character of the applicant’s proportionate share in the income of thecontributory trust will be same as in the hands of the contributory trust? Whether the applicant’s share in the dividend earned by the contributorytrust will be chargeable to tax and if so at what rate? Whether the applicant’s share in the interest earned by the contributory trustbe chargeable to tax at the rate of 20 per cent. ? Whether, on the facts and in the circumstances ofthe case, the applicant’s share in the capital gains earned by the contribu-tory trust will be chargeable to tax ? Whether there would be any withholding tax liability on the CT in respectof the distributions made to the applicant ? Whether, on the facts and in the circumstances ofthe case, the applicant’s proportionate share in the surplus arising on therealisation of the investments made by the contributory trust would constitute capital gains ? Whether, in case the answer to question No. 11 is in the negative, the proportionate share of the applicant in such surplus will be chargeable to income-tax in India in the applicant’s hands ?
|