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2009 (6) TMI 7 - AAR - Income TaxConstruction of power station – offshore supplies made by the applicant (a company incorporated in Korea) and onshore operations are undertaking by an Indian Company – Question:- On the facts and circumstances of the case, whether the amounts received/receivable by the applicant i.e. Hyosung Corporation from Power Grid Corporation of India Limited (“PGCIL”) for offshore supply of equipments, materials, etc., are liable to tax in India under the provisions of the Act and India-Korea tax treaty – AAR held that under the terms of the contract, the sale of equipments and materials took place outside the territories of India and the income in relation thereto cannot be said to accrue or arise in India and, therefore, not liable to be taxed under the Income-tax Act, 1961 – Further the applicant cannot be said to have a Permanent Establishment within the meaning of Art. 5.3 of DTAA - However, question of PE left open to AO subject to inquiries.
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