Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Foreign Remittance: Taxability: Case Law Analysis 2015: Series 3

Income Tax - Direct Tax Code - DTC - By: - CA Rohit Gupta - Dated:- 18-4-2015 - International Tax Update 1. Reimbursement of Technical Expenses to Head office: Bureau Veritas-Indian Division vs. ADIT 2015 (4) TMI 578 - ITAT MUMBAI: The Assessee was a French company which operated in India through its Indian Division. Assessing Officer had observed that 'the head office expenditure allocated to the Indian division was in the nature of technical and administrative expenses'. According to A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ax treaty are confined to payment for such services 'as make available' technical knowledge, skill, experience, etc. In instant case, payment in question was in nature of reimbursement of technical expenses to head office and not on account of any specific technical services having been 'made available' and, therefore, said amount could not be brought to tax in hands of assessee under article 13 of Indo-French Tax Treaty. Also, said amount could not also be taxed in hands of asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

expenses to HO in the hands of Indian PE for non-deduction of TDS u/s 40(a)(ia) b) Taxability of Foreign Company for income in India: Taxability of Income of Non-resident Company In Respect Of Income earned from Indian branch office. 1.1(b): The tribunal has rightly observed that assessee was not required to deduct tax at source from the impugned payment, consequently no disallowance could be made of the said amount of fee for technical services paid by the assessee to its Head Office, therefore .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

taxation. 1.1(e): DTAA requires that Indian PE should be treated as separate entity for the purpose of computation of income and hence payments by the Indian PE to its foreign head office is also required to be deducted for the purpose of computation of Income of Indian PE and determining its tax liability. Also, it allows under Article 7(3)(b) the deduction for amounts towards reimbursement of actual expenses by PE to head office. However, In Income Tax Act, Indian PE and foreign head office a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

any S.A. 2015 (3) TMI 148 - ITAT MUMBAI: Assessee, a Switzerland based company, was engaged in business of operation of ships in international waters. Assessee filed its return claiming refund of tax liability on freight earnings contending that profits arising out of operation of shipping activities was not taxable in India - Assessing Officer held that profits earned by assessee from operations of ships in international traffic was taxable in accordance with provisions of section 44B. HELD, It .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gement has brought the taxability of shipping Income under Article 22 Other Income as there is no specific article dealing with shipping profits under India -Swiss DTAA. Also, the income was not considered as business profits under Article 7 as the said article specifically excludes income from operation of ships in International traffic. 2.1(a) Also, It should be noted that normally DTAAs with other countries require income from operation of ships in international traffic be taxed in the state .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

profits after 1.4.2015 in respect of Swiss based companies as POEM at any time will make swiss company an Indian Resident and hence taxable in respect of other income in India. (For detailed discussion refer article Place of Effective Management (POEM) in India Corporate Taxation: Analysis & Safeguards) 3. Purchase of Technical Know-How not royalty: ITO vs. Heubach Colour (P.) Ltd. 2015 (4) TMI 579 - ITAT AHMEDABAD: Assessee-company was in business of manufacturing and sale of colour pigment .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f section 195 were not applicable. 3.1) Comment: Judgement has rightly held the payment as not royalty on the basis of judgement by Delhi high court in Asia Satellite Communications Ltd. 2011 (1) TMI 47 - DELHI HIGH COURT wherein it was held that The Term 'royalty' appearing in Explanation 2 to sub-clause (vi) of section 9(1) of the Act. Sub-clause (i) deals with the transfer of all or any rights (including the granting of a licence) in respect of a patent, etc. Thus, what this sub-claus .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e rights in rem, being good against the entire world and not merely against a specific person and such rights are indeterminate in duration and residuary in character. the definition of term 'royalty' in respect of the copyright, literary, artistic or scientific work, patent, invention, process, etc. does not extend to the outright purchase of the right to use an asset, In case of royalty, the ownership on the property or right remains with owner and the transferee is permitted to use th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r US $ 28,940,000. The CSA provided for the ownership rights in the Flag Cable System with all the rights and obligations in he capacity sold i.e., VSNL can transfer, assign or sell the capacity. It also lays down the concept of standby maintenance, payments, obligations, management decisions etc. The entire procedure for ownership of capacity in the cable system and all other terms and conditions has been contained in a separate agreement titled as Construction and Maintenance Agreement (CandMA .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Notification: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017

Forum: Trans1 return

News: Exchange Rate of Foreign Currency Relating To Imported and Export Goods Notified

Forum: Credit on Repair of Company Car & Its Insurance

Circular: Promote the officers of the Indian Revenue Service (Customs and Central Excise) to the grade of Principal commissioner of customs, GST & CX

Circular: Allocate the charges amongst the Members of the Central Board of Excise and Customs

Circular: Strategy for audits in 2017-18 consequent to GST - Audit by Central Excise and service Department to continue for the accounting year 2016-17 and for the past period

Circular: Appoint the IRS (C&CE) officers as Principal Commissioner (Revision Application) and ex-officio Additional Secretary

Circular: Time limit for filing intimation for composition levy under Rule 3(1) of the CGST Rules, 2017 extended to 16-8-2017

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

Circular: C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regime

Circular: List of Reduced Tax Liabilities under GST regime in comparison to present combined Indirect Tax rates

Circular: Works Contract for construction of Flats, Complex — Builders to pass on GST benefit to buyer otherwise anti-profiteering provisions of Section 171 of GST Act to apply

Circular: Clarification regarding applicability of section 16 of the IGST Act, 2017, relating to zero rated supply for the purpose of Compensation Cess on exports – Regarding.

Circular: Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance- regarding

Forum: Duty Drawback & Input Credit - under GST

News: RBI Reference Rate for US $

Highlight: Addition u/s 23(1)(a) - deemed rent - once the property is let out and at any point of time this remained vacant during the same cannot be brought to tax under the head House properties income.

News: Haryana constitutes screening committee on anti-profiteering

Highlight: Valuation of imported goods - it is necessary to re-examine the matter of both license agreement as well as supply contract simultaneously, to see if the enhanced royalty was in the guise of adjustment of the price of components.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

Highlight: Cenvat credit availed on Club Membership for the Director is not admissible as it cannot be said to be remotely connected with the activity of manufacture

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

News: Jaitley asks biz not to wait till last day to file GST returns

Circular: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg.

Article: 20 Things You must know about E Way Bills in GST Law

Article: ‘DUTY DRAWBACK’ CANNOT BE EQUATED WITH ‘REBATE OF DUTY’

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version