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2010 (2) TMI 186 - AAR - Income TaxNon Resident - The appellant, a Russian Company, which was engaged in the business of construction and Commissioning of power projects, applied successfully to a bid of the National Thermal Power Corporation (NTPC) and entered into three contracts of which the offshore supply contract was one. Claiming that the transaction of off shore plant and equipment were liable to be taxed in India under the Income Tax Act, 1961. On the facts stated the authority ruled- that no portion of the consideration was received by the appellant in India. Further, no income accrued or arose in India to the applicant as all the transaction took place outside India. The material were shipped outside India. The title to the property passed outside India and the payment was received outside India. Therefore, the appellant was not liable to pay tax under the provisions of Income Tax Act, 1961, read with the agreement for Avoidance of Double Taxation between India and Russia in respect of the amount received from the NTPC for execution of the off shore supply contract.
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