Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2010 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (9) TMI 717 - HC - Income TaxDTAA - The issue relating to the payment of interest on advance tax under section 234B of the Act has been decided by this court in a recent judgment in Director of Income-tax v. Mitsubishi Corporation (2010 -TMI - 78020 - DELHI HIGH COURT) in favour of the assessee and against the Revenue wherein it was held that: if the person (payer) who had to make payments to the non-resident had defaulted in deducting the tax at source from such payments, the non-resident is not absolved from payment of taxes thereupon. However, in such a case, the non-resident is liable to pay tax and the question of payment of advance tax would not arise. Taxability of services provided by assessee - The contention of the assessee was that the fee received from NHAI is to be treated as "fees for included services" as prescribed in article 12(4) of the Double Taxation Avoidance Agreement (DTAA) between India and Canada - The Tribunal has relied upon the aforesaid Treaty in support of its conclusion - The said article 12(4)(b) does not contemplate transfer of all rights totally or interest in such technical design or plan - Even where the technical design or plan is transferred for the purpose of mere use of such design or plan by the person of the other contracting State and for which the payment is to be made, article 12(4)(b) would be attracted - Decided in the favour of the assessee
|