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TMI BlogClarification regarding taxability of consortium membersX X X X Extracts X X X X X X X X Extracts X X X X ..... Clarification regarding taxability of consortium members X X X X Extracts X X X X X X X X Extracts X X X X ..... nstruction (EPC) contracts/turn key projects has been a subject matter of dispute between Income-tax Department and the consortium. This has been particularly so in cases where each member of the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortium has a clear and district role in scope of work, responsibilities and liability of the consortium even though each member is jointly and severally liable to the contractee. To bring about consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stency in approach while handling cases of consortium, the Central Board of Direct taxes has issued Circular No. 7/2016 clarifying the attributes of a consortium arrangement which may not be treated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s an Association of Persons(AOP). The list of attributes is not exhaustive. There may be additional factors which may justify not treating a consortium as an AOP depending on specific facts and circum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stances. The Circular will not apply to cases where all or some of the members of the consortium are Associated Enterprises as defined in section-92A of the Income-tax Act. This Circular is expected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to reduce litigation with consortium of contractors implementing EPC contracts/turnkey projects.
Circular No.7/2016 is available on the website of the Department www.incometaxindia.gov.in. X X X X Extracts X X X X X X X X Extracts X X X X ..... - Press release - PIB ..... X X X X Extracts X X X X X X X X Extracts X X X X
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