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2012 (2) TMI 74 - AAR - Income TaxOff- shore supply contract – India-China Double Taxation Avoidance Convention - applicant being company of China – contract for supply of equipment to Indian company - Indian company, defined as the 'owner' in the contract - passing of the title to the equipment outside the country - title passed at the port of loading : Shanghai - Bill of Lading, Bill of Entry shows owner to be Indian company – Transit insurance in name of owner - taxability of the payment received under the contract – Revenue contending that pre-commissioning and commissioning activities must be taken as one and indivisible and the liability to tax should be determined on that basis - Held that:- On perusal of aforesaid, it is found that this would be an offshore sale in the light of the decision in case of Ishikawajima-Harima Heavy Industries Ltd (2007 - TMI - 3467 - Supreme Court ) and hence not liable to tax in India. We clarify that the ruling relates only to off-shore supplies – Decided in favor of assessee.
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