Withholding taxes on cross-border payments A conundrum? Ernst & Young Webcast Held on 10 February 5.00 p.m. (IST)

Size: px
Start display at page:

Download "Withholding taxes on cross-border payments A conundrum? Ernst & Young Webcast Held on 10 February 5.00 p.m. (IST)"

Transcription

1 Withholding taxes on cross-border payments A conundrum? Ernst & Young Webcast Held on 10 February 5.00 p.m. (IST)

2 Contents Background Key issues/ challenges Karnataka High Court ruling Technical analysis Way forward Generally asked questions (GAQs)

3 Background

4 Background Withholding tax (WHT) on cross-border payments a significant issue in international taxation Availability of foreign tax credit in home country? Double taxation concerns Real time taxes Difficult/impossible to retrieve the horse after it has bolted Need to control the gates at points of actual or deemed payment Tax Authorities like WHTs it puts them in control of cash flows Page 4

5 Overview of non-resident WHT provisions WHT provision (Sec 195) applicable on: any sums payable by any person to a non-resident (NR) which is chargeable to tax in India at rates in force Arises at the time of credit or payment, whichever is earlier Certificate for tax authority for appropriate rate or appropriate amount of WHT Possible to seek advance ruling Procedural rules require the payer to obtain an Accountant s certification before making remittance Page 5

6 Overview of non-resident WHT provisions Final tax liability (where tax liability is on gross amount) or could be a collection on account of the final tax liability Tentative in nature, subject to determination of final tax liability Recipient can file tax return and claim refund for excess WHT Typical payments subject to WHT Any sums which are chargeable to tax in India Interest Royalty Service Fees (managerial, technical or consultancy services) Capital gains Business profits attributable to a PE/ business connection in India Any other income accruing or arising in India Page 6

7 Overview of non-resident WHT provisions Consequences of WHT default: Payer treated as assessee in default (AID) under Section 201 Recovery of taxes not withheld from payer Payer subject to interest and possibly penalties Expense disallowance Net of taxes clauses in contracts Common but may be expensive Section 195A requires gross up of taxes borne by payer Page 7

8 Key issues/ challenges

9 Key issues/ challenges Payments subject to WHT Any sums chargeable to tax in India Issues in determining sums chargeable to tax in India A substantive question of law and fact Determining character and source of income Determining appropriate amount where taxation is on net income Characterization of income Royalty/ fees for technical service (FTS) v business profits Broader definition of FTS in domestic tax law v narrower definition in some tax treaties Payments for purchase of computer software, communication services and e-commerce / technology transactions Source of income Services rendered from outside India? Page 9

10 Key issues/ challenges Persons responsible for WHT Any person responsible for making any payment to a NR Any person includes individual, firm, company etc., whether resident or not Extra-territorial application as even NR s (not having any territorial nexus with India) subject to WHT compliance Recent controversy on extra-territorial application of the provision Persons subject to WHT WHT applicable on payments to NR Branch office or PE of a foreign company subject to WHT on all chargeable sums Possibility of payer applying WHT on gross amount Provision for seeking a nil WHT certificate from the tax authorities Page 10

11 Key issues/ challenges Period of limitation for passing AID order Finance (No 2) Act, 2009 amendment provides time limit in case of payments to residents for orders passed after April 1, 2010 No specific time limit provided in tax law for payments to NR Case laws suggest the need to apply a reasonable time limit Mumbai Tribunal (Special Bench) in the case of Mahindra & Mahindra Ltd [2009-TIOL-255-ITAT-MUM-SB] should be at par with the time limit for initiating and completing assessment on NR Delhi High Court in NHK Japan Broadcasting Corporation [305 ITR 137] 4 years from the end of the financial year in which tax was deductible Page 11

12 Key issues/ challenges Mandatory requirement for Permanent Account No (PAN) Section 206AA introduced with effect from April 1, 2010 Recipients of payments on which tax is deductible need to provide PAN WHT at higher of rates in force or 20% in the absence of PAN Application for lower WHT certificate cannot be made without PAN Can Section 206AA operate to override tax treaties that provide for lower WHT rate? Page 12

13 Karnataka High Court Ruling

14 Karnataka HC Ruling in the case of Samsung & Others [2010] 320 ITR 209 (Kar HC) Background Tax Authority on appeal before Karnataka High Court (KHC) against order of Bangalore Income-tax Appellate Tribunal (ITAT) in a case involving several taxpayers Principal issue before HC whether payment for purchase of computer software should be subject to royalty WHT? Tax Authority argued that payment is in the nature of royalty, subject to WHT The first appellate authority ruled in favor of the Tax Authority while the ITAT ruled in favor of the Taxpayer Page 14

15 Karnataka HC Ruling in the case of Samsung & Others [2010] 320 ITR 209 (Kar HC) KHC decision Taxes have to be withheld on any payment made to a NR which is in the nature of income Reliance placed on certain observations of Supreme Court (SC) decision in Transmission Corporation [1999] 239 ITR 587 (SC) As the Taxpayers had not obtained certificate for lower WHT from Tax Authority contention that there is no liability to WHT cannot be sustained Charging provisions under the ITL are independent of the provisions governing withholding of taxes WHT provisions seek to withhold a tentative amount as taxes before determination of actual tax liability of the NR Page 15

16 Karnataka HC Ruling in the case of Samsung & Others [2010] 320 ITR 209 (Kar HC) KHC decision (Cont d) Tax Authority not required to assess the income of the NR for the purpose of WHT when an application is filed before it For failure to withhold taxes, Tax Authority can initiate proceedings for recovery of taxes and interest NR can contest its tax liability in India by filing a tax return under the ITL Principal question of characterization of payment for purchase of computer software not addressed Page 16

17 Karnataka HC Ruling in the case of Samsung & Others [2010] 320 ITR 209 (Kar HC) Likely implications Payments made to NR for all commercial transactions subject matter of WHT, irrespective of taxability Taxpayers would need to follow the process of seeking certificate under Section 195(2)/ 197 in each and every case Significant increase in number of such applications Adverse implications on international trade in case of delay/ reluctance in processing certificates Indiscriminate application of ruling can result in denial of deduction for most payments to NR Possibility of tax authorities seeking to re-open past matters Page 17

18 Karnataka HC Ruling in the case of Samsung & Others [2010] 320 ITR 209 (Kar HC) Current status of litigation Number taxpayers have filed or in process of filing special leave petition to SC Interim order in case of some taxpayers Stay on recovery of taxes Similar issue also under consideration by Special Bench of Chennai ITAT Page 18

19 Technical analysis

20 Technical analysis: scope of Section 195 Scope of section 195(1) WHT required if a sum is chargeable to tax as per the provisions of the ITL Where payment is not taxable in India (either exempt under the ITL or applicable tax treaty), Section 195 (1) should not have application To be read with Section 4(2) of the ITL In respect of the income chargeable under sub-section (1), income-tax shall be deducted at the source or paid in advance, where it is so deductible or payable under any provision of the Act Page 20

21 Technical analysis: scope of Section 195 Scope of section 195(2) Taxpayer may make an application to the Tax Authority to determine the appropriate portion of such sum so chargeable Taxpayer will have to file an application only when the sum is taxable The term such indicates that income has to be chargeable to tax. The term may indicates that it is not obligatory to approach the Tax Authority for an order. Reliance can be placed on the following: Circular No 152 dated 27 November 1974 Procedure for making remittance to NR on submission of CA certificate in Form No 15CB provided in Circular No 4 dated 29 June 2009 HC decision in Czechoslavak Ocean Shipping [1970] 81 ITR 162 ITAT Special Bench decision in Mahindra & Mahindra Ltd (Supra) Page 21

22 Technical analysis: scope of Section 195 Inappropriate reliance on SC decision in Transmission Corporation by KHC SC observed that any..sum chargeable under the provisions of this Act would mean sum on which tax is leviable Tax is required to be withheld when amount is taxable When some portion is taxable, taxpayer should approach the tax authority for WHT order under section 195(2)/197 Page 22

23 Technical analysis: scope of Section 195 Decisions not given due consideration by KHC Eli Lilly and Co. (India) P. Ltd [2009] 312 ITR 225 (SC) Machinery provisions are not independent of charging provisions ITL is an integrated code in which one cannot segregate the computation machinery from the collection and recovery machinery". Vijay Ship Breaking Corporation [2009] 314 ITR 309 (SC) No WHT obligation in respect of exempt income under the ITL as the liability to withhold tax arises only if tax is assessable in India Jindal Thermal Power Company [2009] 225 CTR 220 (KHC) SC decision in Transmission did not lay down that person making payment has no right to question the tax liability of payee State Bank of India [2008] 13 DTR 294 (Raj HC) Referred to the SC decision in case of Transmission and held that WHT obligation would not apply as the interest was exempt Page 23

24 Technical analysis: binding nature of ruling Legal principles on binding nature of court decisions Law declared by the SC binding on all Courts in India HC decisions binding on subordinate Courts/tribunals/authorities under its jurisdiction Could be considered by non-jurisdictional Courts/ Tribunals/ Authorities as having persuasive value Conflicting decisions of various HC s other than the jurisdictional HC Tribunal may follow that decision that seems to it to lay down the better view Special Bench decision binds the division bench of the Tribunal unless a contrary view is expressed by jurisdictional HC or SC Kanel Oil and Exports Industries Ltd. v. JCIT [2009] 126 TTJ 158 (Ahd) Page 24

25 Technical analysis: binding nature of ruling Taxpayers not subject to jurisdiction of KHC Does not establish a binding precedent Taxpayers can continue to rely on other SC/ HC decisions as well as Special Bench Decision Recent decision of Mumbai ITAT in the case of Anchor Health [ TIOL-767-ITAT-Mum] SB ruling in the case of Mahindra not referred Arguably decided per incuriam, case incorrectly decided Page 25

26 Technical analysis: binding nature of ruling Taxpayers subject to jurisdiction of KHC Possibility of decision setting a binding precedent for jurisdictional ITAT/ Tax Authorities Taxpayers taking contrary position would need to argue their case before larger bench of HC or before SC Is there a case for diluting the binding nature of the decision? Should taxpayers WHT on all NR payments or seek certificate from Tax Authorities? What is the status of CA certificate for NR payments? What is the impact on past transactions? Page 26

27 Way forward

28 Way forward WHT on NR payments has been an area of focus KHC ruling likely to strengthen enforcement efforts of Tax Authorities Consider reviewing current WHT practices and develop strategy for future payments Undertake a risk assessment for past transactions Evaluate options for mitigating risks (e.g. Advance Ruling, Sec 195/ 197 certificates) where appropriate Assess legal remedies that may be available in case of adverse action by Tax Authorities Need to monitor future judicial and legislative developments Page 28

29 GAQs on WHT

30 GAQs on WHT 1. What is the impact of stay granted by the SC pursuant to SLP filed against Samsung decision? Has the decision of the KHC been stayed? 2. What are the potential risks if the Tax Authority wins at the SC level? 3. Since the provisions of Forms 15CA and15cb have not been highlighted in the Samsung judgement, does the decision in Samsung be considered as being decided per incuriam? If so, what is the impact of the decision in Samsung? 4. Are WHT provisions applicable in respect of any payment made to NR pursuant to any commercial transaction (supply of goods/provision of services) with the NR? If not, then what is the impact of the contrary ruling passed in Samsung s case? Page 30

31 GAQs on WHT 5. Does the applicability of WHT depend on the Country or does it depend on the type of service or business? 6. In case of payments made for software subscription to software resellers, where such subscription charges are liable to service tax, would such payments be treated as FTS and be subject to WHT in India? 7. What would be the WHT rate applicable in case of payments made for professional fees overseas? How would it differ if the payment is made to a person resident in a country which a treaty partner of India e.g. US or UK? What would be the rate applied in such a case? 8. Is payment made by an Indian company to a US company for transfer of technology (pursuant to a technology transfer agreement entered with its US based parent company), subject to withholding of taxes in India? The US company does not have a PE in India, but the US parent has a PE in India. The Indian company does not have any relation/transaction with the PE in India. Page 31

32 GAQs on WHT 9. Is it mandatory to make an application under section 195(2) even if there is a business income payment and no PE in India? What if a PE does exist? 10. Is there any difference in WHT provisions which are applicable for the foreign company as against those applicable to a NR Individual that provides services in India? 11. A NR supplier or service provider would always want to recover from an Indian buyer, the taxes withheld in India. The amount recovered is the difference in the tax rates applied by the two countries whose authentic calculation is always a big question. What are the possible ways through which an authentic calculation can be ensured? 12. Is WHT dependent on the currency in which the payment is made? 13. At present, is it right that an Indian individual need not to pay any WHT to the Government of India if that Individual provides services in other countries and gets the payment in foreign currency. What are the points which one needs to take care of while providing service? Page 32

33 GAQs on WHT 14. With effect from 1 April 2010, non-residents are required to obtain a Permanent Account Number (PAN) to avoid withholding of tax at 20%. If a payment is not liable to withholding of tax, is the non-resident required to apply for PAN? 15. Update on the India-Mauritius tax treaty and litigation in the Vodafone case? Page 33

34 Ernst & Young Presenter Rajendra Nayak, Partner, Tax Knowledge & Solutions Recorded version of the webcast will be accessible till 12 March 2010 at: For enquiries, please write to: This Presentation provides certain general information existing as at the time of production. This Presentation does not purport to identify all the issues or developments pursuant to the transaction. Accordingly, this presentation should neither be regarded as comprehensive nor sufficient for the purposes of decision-making. Ernst & Young does not undertake any legal liability for any of the contents in this presentation. The information provided is not, nor is it intended to be an advice on any matter and should not be relied on as such. Professional advice should be sought before taking action on any of the information contained in it. Without prior permission of Ernst & Young, this document may not be quoted in whole or in part or otherwise referred to in any documents. Page 34

35 Ernst & Young Pvt. Ltd Ernst & Young. All Rights Reserved. Ernst & Young is a registered trademark. Thank you

TDS under section 195 of the Income-tax Act. CA Vishal Palwe 16 December 2017 Seminar on International Taxation at WIRC

TDS under section 195 of the Income-tax Act. CA Vishal Palwe 16 December 2017 Seminar on International Taxation at WIRC TDS under section 195 of the Income-tax Act CA Vishal Palwe 16 December 2017 Seminar on International Taxation at WIRC Overview of section 195 Overview of section 195 195(1) Any person paying to non-resident

More information

TDS on Non Residents. CA. Rajesh Patil

TDS on Non Residents. CA. Rajesh Patil TDS on Non Residents. CA. Rajesh Patil Western India Regional Council 12 February 2011 Contents (1) Introduction Analysis of section 195 Payers covered Payees covered Payments covered Point of Tax Withholding

More information

Overview of Taxation of Non Residents

Overview of Taxation of Non Residents Overview of Taxation of Non Residents CTC Vispi T. Patel Vispi T. Patel & Associates 13 th December, 2013 Scheme of Taxation for Non Residents under Income-tax Act, 1961 Section 4 (Charge of Income-tax)

More information

Tax Withholding Section 195 and CA certification

Tax Withholding Section 195 and CA certification Tax Withholding Section 195 and CA certification October 1, 2011 Bijal Desai Presentation Outline Non-resident payments Withholding tax Lower or NIL withholding of tax CA Certification Consequences of

More information

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOs OF 2010 (Arising out of SLP(C) No of 2009)

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOs OF 2010 (Arising out of SLP(C) No of 2009) IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOs.7541-7542 OF 2010 (Arising out of SLP(C) No. 34306-34307 of 2009) GE India Technology Centre Private Ltd.. Appellant(s) Versus

More information

TDS on Payments to Non-residents under section 195 Law and Procedures

TDS on Payments to Non-residents under section 195 Law and Procedures Study Course on International Taxation for Beginners Organised by - Western India Regional Council of the Institute Chartered Accountants of India TDS on Payments to Non-residents under section 195 Law

More information

SECTION 195 OF THE INCOME TAX ACT,1961 PROVISIONS, AMENDMENTS AND CONTROVERSIES

SECTION 195 OF THE INCOME TAX ACT,1961 PROVISIONS, AMENDMENTS AND CONTROVERSIES 1 WIRC Pune Camp CPE Study Circle January 19, 2013 SECTION 195 OF THE INCOME TAX ACT,1961 PROVISIONS, AMENDMENTS AND CONTROVERSIES CA JIGER SAIYA jigersaiya@mzsk.in Contents Introduction Recent Amendments

More information

EY Tax Alert. Executive summary. Kolkata Tribunal rules on taxability of online advertisement revenues. 18 April mber 2012

EY Tax Alert. Executive summary. Kolkata Tribunal rules on taxability of online advertisement revenues. 18 April mber 2012 18 April 2013 2013mber 2012 EY Tax Alert Kolkata Tribunal rules on taxability of online advertisement revenues Executive summary Tax Alerts cover significant tax news, developments and changes in legislation

More information

Sharing insights. News Alert 2 January, Amount paid to a non-resident net of taxes to be grossed up at the rates in force. In brief.

Sharing insights. News Alert 2 January, Amount paid to a non-resident net of taxes to be grossed up at the rates in force. In brief. www.pwc.com/in Sharing insights News Alert 2 January, 2013 Amount paid to a non-resident net of taxes to be grossed up at the rates in force In brief In a recent case of Bosch Ltd 1 (the assessee), the

More information

Withholding tax u/s 195 and filing of Form 15CA/ 15CB - Key issues April 2017

Withholding tax u/s 195 and filing of Form 15CA/ 15CB - Key issues April 2017 Withholding tax u/s 195 and filing of Form 15CA/ 15CB - Key issues April 2017 Section 195 Overview Section Provisions 195(1) Scope and conditions for applicability 195(2) Application by the Payer for determination

More information

The Institute of Chartered Accountants Of India

The Institute of Chartered Accountants Of India The Institute of Chartered Accountants Of India 15CA- 15CB Filing, Issues & Precautions Natwar G. Thakrar Saturday, 30 th December, 2017 Presentation Outline Brief Analysis of section 195 Determination

More information

Tax - Heads Up. 07 March Contents Page Judicial Updates 2-6 Other Updates 7

Tax - Heads Up. 07 March Contents Page Judicial Updates 2-6 Other Updates 7 Tax - Heads Up 07 March 2014 Contents Page Judicial Updates 2-6 Other Updates 7 1 Virola International ITAT Agra Context: Under the Indian tax laws, certain specified business expenditures including all

More information

In the High Court of Judicature at Madras. Date : The Hon'ble Mr. Justice R. Sudhakar and The Honble Ms. Justice K.B.K.

In the High Court of Judicature at Madras. Date : The Hon'ble Mr. Justice R. Sudhakar and The Honble Ms. Justice K.B.K. In the High Court of Judicature at Madras Date : 14.07.2015 The Hon'ble Mr. Justice R. Sudhakar and The Honble Ms. Justice K.B.K. Vasuki T.C.A. No: 398 of 2007 M/s. Anusha Investments Ltd. 8 Haddows Road

More information

Overview of Double Tax Avoidance Agreement Comparative analysis between OECD and UN Model Tax Convention. CA Hema Lohiya, 4 July 2015

Overview of Double Tax Avoidance Agreement Comparative analysis between OECD and UN Model Tax Convention. CA Hema Lohiya, 4 July 2015 Overview of Double Tax Avoidance Agreement Comparative analysis between OECD and UN Model Tax Convention CA Hema Lohiya, 4 July 2015 Contents About UN Model Comparative Analysis Comparative View Indian

More information

Overview of Section December, WIRC of ICAI

Overview of Section December, WIRC of ICAI Overview of Section 195 30 December, 2017 WIRC of ICAI 1 Payments to Non-resident Payments to Non-residents Key implications FEMA law and compliances GST on RCM basis Banking compliances and documentation

More information

Workshop on Practical Problems of Tax Treaty Interpretation and Application

Workshop on Practical Problems of Tax Treaty Interpretation and Application Workshop on Practical Problems of Tax Treaty Interpretation and Application TERMINATION PAYMENTS FOR NON-COMPETE CLAUSE BIJAL AJINKYA Partner, Khaitan & Co Facts Mr A, resident of R, works as a lawyer

More information

Vinodh & Muthu Chartered Accountants. Newsletter MAY 2016

Vinodh & Muthu Chartered Accountants. Newsletter MAY 2016 Vinodh & Muthu Chartered Accountants Newsletter MAY 2016 2 Dear Readers, Welcome to our newsletter. VMCA brings you the significant developments in taxation during the month of May 2016. We hope this edition

More information

Tax Dispute Resolution in India - How to effectively handle? Sanjay Sanghvi 29 April 2017

Tax Dispute Resolution in India - How to effectively handle? Sanjay Sanghvi 29 April 2017 Tax Dispute Resolution in India - How to effectively handle? Sanjay Sanghvi 29 April 2017 Income Tax in India An overview Residents taxed on worldwide income Non-residents taxed on Indian sourced income

More information

DEDUCTION OF TAX AT SOURCE SECTION 195 H PADAMCHAND KHINCHA CHARTERED ACCOUNTANTS

DEDUCTION OF TAX AT SOURCE SECTION 195 H PADAMCHAND KHINCHA CHARTERED ACCOUNTANTS DEDUCTION OF TAX AT SOURCE SECTION 195 H PADAMCHAND KHINCHA CHARTERED ACCOUNTANTS 1 Nature of TDS obligation Section 4(1) Charge of income tax Section 4(2) Income tax shall be deducted at source or paid

More information

Taxation of Foreign Telecasting & Hollywood Companies - Vishal Gada

Taxation of Foreign Telecasting & Hollywood Companies - Vishal Gada Taxation of Foreign Telecasting & Hollywood Companies - Vishal Gada WIRC-ICAI, February 26, 2010 1 Foreign Telecasting Companies 2 Overview of Telecasting Co s operations Operations of Telecasting Co.

More information

Indian subsidiary of group holding company of Netherlands entity does not constitute permanent establishment in India

Indian subsidiary of group holding company of Netherlands entity does not constitute permanent establishment in India 15 February 2017 Indian subsidiary of group holding company of Netherlands entity does not constitute permanent establishment in India Background Recently, the Delhi Bench of the Income-tax Appellate Tribunal

More information

CORPORATE UPDATE IN THIS ISSUE DIRECT TAX INTERNATIONAL TAXATION TRANSFER PRICING DOMESTIC TAXATION. September, 2018

CORPORATE UPDATE IN THIS ISSUE DIRECT TAX INTERNATIONAL TAXATION TRANSFER PRICING DOMESTIC TAXATION. September, 2018 CORPORATE UPDATE DIRECT TAX INTERNATIONAL TAXATION I. High Court upholds grossing up for withholding tax purpose where taxes are borne by customer on fees for technical services paid to non-resident even

More information

IN THE INCOME TAX APPELLATE TRIBUNAL L BENCH: MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL L BENCH: MUMBAI IN THE INCOME TAX APPELLATE TRIBUNAL L BENCH: MUMBAI BEFORE SHRI R. S. PADVEKAR, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA No.442/Mum/2009 (Assessment year: 2005-06), Devidas Mansion,

More information

An overview and practice aspects of withholding tax under Section 195 of the Income-tax Act Seminar on TDS, ICAI Western Region Mumbai

An overview and practice aspects of withholding tax under Section 195 of the Income-tax Act Seminar on TDS, ICAI Western Region Mumbai An overview and practice aspects of withholding tax under Section 195 of the Income-tax Act Seminar on TDS, ICAI Western Region Mumbai CA Shailendra S. Sharma 02 April 2016 Agenda Brief overview of TDS

More information

Divakar Vijayasarathy

Divakar Vijayasarathy Divakar Vijayasarathy Esops vested to an employee from the US parent while serving at the US After serving for a considerable period of time, the employee moves to India for employment with the subsidiary

More information

INTENSIVE STUDY GROUP 08/08/2013 CA SANJAY CHOKSHI

INTENSIVE STUDY GROUP 08/08/2013 CA SANJAY CHOKSHI CHAMBER OF TAX CONSULTANTS INTENSIVE STUDY GROUP 08/08/2013 CA SANJAY CHOKSHI CIT V. TEXTOOL CO. LTD. SUPREME COURT QUESTION REFERRED: Whether on the facts and in the circumstances of the case, the Appellate

More information

International Taxation

International Taxation International Taxation Presentation by: CA Amit Maheshwari Partner, Ashok Maheshwary & Associates Chartered Accountants, Gurgaon (Independent Member of the Leading Edge Alliance) E-Mail : info@akmglobal.com

More information

A Fresh look at disallowances u/s 14A of Income Tax Act - By CA. K.K.Chhaparia

A Fresh look at disallowances u/s 14A of Income Tax Act - By CA. K.K.Chhaparia A Fresh look at disallowances u/s 14A of Income Tax Act - By CA. K.K.Chhaparia Now a days, every assessee who is doing investment or trading in shares are getting hit hard by the impact of section 14A.

More information

Payments under section 195 of the I.T. Act

Payments under section 195 of the I.T. Act Payments under section 195 of the I.T. Act JB Nagar Study Circle of WIRC CA N. C. Hegde January 8, 2017 1 Table of content Particulars Section 195 of the Income Tax Act Chargeability to Income-tax Payments

More information

IN THE HIGH COURT OF DELHI AT NEW DELHI SUBJECT : INCOME TAX MATTER. Income Tax Appeal No. 1167/2011. Reserved on: 21st October, 2011

IN THE HIGH COURT OF DELHI AT NEW DELHI SUBJECT : INCOME TAX MATTER. Income Tax Appeal No. 1167/2011. Reserved on: 21st October, 2011 IN THE HIGH COURT OF DELHI AT NEW DELHI SUBJECT : INCOME TAX MATTER Income Tax Appeal No. 1167/2011 Reserved on: 21st October, 2011 Date of Decision: 8th November, 2011 The Commissioner of Income Tax Delhi-IV,

More information

IN THE INCOME TAX APPELLATE TRIBUNAL L Bench, Mumbai Before Shri B.R. Baskaran (AM) & Shri Ravish Sood(JM)

IN THE INCOME TAX APPELLATE TRIBUNAL L Bench, Mumbai Before Shri B.R. Baskaran (AM) & Shri Ravish Sood(JM) Per Bench :- IN THE INCOME TAX APPELLATE TRIBUNAL L Bench, Mumbai Before Shri B.R. Baskaran (AM) & Shri Ravish Sood(JM) I.T.A. No. 1532/Mum/2015 (Assessment Year 2014-15) I.T.A. No. 1533/Mum/2015 (Assessment

More information

Surcharge and education cess cannot be levied on the tax deducted at source based on Section 206AA of the Act

Surcharge and education cess cannot be levied on the tax deducted at source based on Section 206AA of the Act 1 February 2017 Surcharge and education cess cannot be levied on the tax deducted at source based on Section 206AA of the Act Background Recently, the Delhi Bench of the Income-tax Appellate Tribunal (the

More information

TDS provisions for payment to nonresident under Section 195 of the Income-tax Act

TDS provisions for payment to nonresident under Section 195 of the Income-tax Act TDS provisions for payment to nonresident under Section 195 of the Income-tax Act Seminar on issues in TDS ICAI, Mumbai CA Shailendra S. Sharma 23 January 2016 Agenda Brief overview of TDS provisions Concept

More information

TDS on Payments to Non-Residents u/s Laws & Procedures. CA Zeel Gala 13 December 2018

TDS on Payments to Non-Residents u/s Laws & Procedures. CA Zeel Gala 13 December 2018 TDS on Payments to Non-Residents u/s 195 - Laws & Procedures CA Zeel Gala 13 December 2018 Payments to Non-resident Payments to Nonresidents Key implications FEMA law and compliances GST on RCM basis Banking

More information

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B BEFORE SHRI JASON P BOAZ, ACCOUNTANT MEMBER AND SHRI N V VASUDEVAN, JUDICIAL MEMBER

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B BEFORE SHRI JASON P BOAZ, ACCOUNTANT MEMBER AND SHRI N V VASUDEVAN, JUDICIAL MEMBER Page 1 of 13 1 IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B BEFORE SHRI JASON P BOAZ, ACCOUNTANT MEMBER AND SHRI N V VASUDEVAN, JUDICIAL MEMBER (Asst. year 2005-06) M/s Synopsys International

More information

The Reckoner. keeping you ahead June 2009

The Reckoner. keeping you ahead June 2009 The Reckoner. keeping you ahead June 2009 March 2010 Contents INCOME TAX... 3 DOMESTIC TAXATION... 3 GENERAL... 3 CASE LAWS... 3 INTERNATIONAL TAXATION... 7 GENERAL... 7 CASE LAWS... 10 ACCOUNTS, AUDIT

More information

Royalty and Fees for Technical Services CA Hiten Sutar. 16 December 2017

Royalty and Fees for Technical Services CA Hiten Sutar. 16 December 2017 Royalty and Fees for Technical Services CA Hiten Sutar 16 December 2017 Royalty & FTS Overview under IT Act 1 Brief overview of provisions of Income Tax Act, 1961 Section 5 Scope of Total Income for Non

More information

Controversies surrounding Section 14A of the Income Tax Act

Controversies surrounding Section 14A of the Income Tax Act Controversies surrounding Section 14A of the Income Tax Act CA Vivek Newatia vnewatia@sjaykishan.com CA Puja Borar pujaborar@sjaykishan.com Background and Rationale for introduction Section 14A introduced

More information

Sharing insights. News Alert 22 April Use of hotel rooms for the purpose of business could result in a permanent establishment. In brief.

Sharing insights. News Alert 22 April Use of hotel rooms for the purpose of business could result in a permanent establishment. In brief. www.pwc.in Sharing insights News Alert 22 Use of hotel rooms for the purpose of business could result in a permanent establishment In brief In a recent ruling 1, the Mumbai Income-Tax Appellate Tribunal

More information

SOME RELEVANT TREATY ISSUES

SOME RELEVANT TREATY ISSUES SOME RELEVANT TREATY ISSUES Rahul Charkha August 29, 2018 CONTENT Sr. No. Topic 1 Glossary 2 Most Favoured Nation Principle 3 Tax Credit 4 Mutual Agreement Procedures 5 Annexure - 1 6 Our Team GLOSSARY

More information

Foreign Tax Credit. June 2016

Foreign Tax Credit. June 2016 Foreign Tax Credit June 2016 Table of content 1 Introduction 2 Types of Relief 3 Exemption Method 4 Credit Method 5 Double non-taxation 6 Excess FTC 7 Documentation 8 Cases where FTC not available 9 Case

More information

International Taxation: Recent Controversies & Jurisprudence

International Taxation: Recent Controversies & Jurisprudence WIRC of ICAI International Taxation: Recent Controversies & Jurisprudence September 15, 2012 CA Jiger Saiya CASE STUDIES DISCUSSED Turnkey Contracts Buyback of Shares Attribution of Profits to Dependent

More information

Gurgaon Branch of NIRC of ICAI

Gurgaon Branch of NIRC of ICAI Form 15 CB/15 CA A Discussion Gurgaon Branch of NIRC of ICAI 27 th August, 2016 by CA Sanjay Agrawal WHAT SHOULD BE OUR TAKE AWAYS? Understand the objective & importance of Form 15 CB & 15 CA.. Understand

More information

Special Bench rules ESOP discount is deductible on vesting of options

Special Bench rules ESOP discount is deductible on vesting of options 19 July 2013 2013mber 2012 EY Tax Alert Special Bench rules ESOP discount is deductible on vesting of options Executive summary Tax Alerts cover significant tax news, developments and changes in legislation

More information

July WHAT'S INSIDE... Direct Tax Transfer Pricing Indirect Tax

July WHAT'S INSIDE... Direct Tax Transfer Pricing Indirect Tax July 16-31 WHAT'S INSIDE... Direct Tax Transfer Pricing Indirect Tax What s inside DIRECT TAX 1. CBDT issues draft Buy-back tax rules for public comments 2. Export commission not taxable, applying Explanation

More information

Equalisation levy Genesis, Provisions and Interpretation Issues

Equalisation levy Genesis, Provisions and Interpretation Issues Equalisation levy Genesis, Provisions and Interpretation Issues By Shaily Gupta, Senior Associate, Vaish Associates Advocates Email: shailygupta@vaishlaw.com 1. Digital Economy The new Economy 'Digital

More information

Global Business Tax Alert Sharp Insights

Global Business Tax Alert Sharp Insights India Tax & Regulatory For private circulation only 24 May 2017 p Global Business Tax Alert Sharp Insights The Mumbai High Court in the case of 1 Marks & Spencer Reliance India Pvt. Ltd., has held that

More information

An overview of Section 195 and foreign payments of the Income-tax Act at The Institute of Chartered Accountants of India, Seminar of TDS

An overview of Section 195 and foreign payments of the Income-tax Act at The Institute of Chartered Accountants of India, Seminar of TDS An overview of Section 195 and foreign payments of the Income-tax Act at The Institute of Chartered Accountants of India, Seminar of TDS by CA Shailendra Sharma 07 April 2018 Agenda Brief overview of the

More information

23 September EY Tax Alert. Key amendments relating to assessment, appeal, penalty and withholding tax in the Direct Taxes Code, 2010

23 September EY Tax Alert. Key amendments relating to assessment, appeal, penalty and withholding tax in the Direct Taxes Code, 2010 23 September 2010 EY Tax Alert Key amendments relating to assessment, appeal, penalty and withholding tax in the Direct Taxes Code, 2010 Executive summary The Direct Taxes Code Bill, 2009 (DTC 2009) was

More information

H A R B I N G E R. B D Jokhakar & Co. Chartered Accountants October Updates on regulatory changes affecting your business

H A R B I N G E R. B D Jokhakar & Co. Chartered Accountants   October Updates on regulatory changes affecting your business October 2014 B D Jokhakar & Co. Chartered Accountants www.bdjokhakar.com INDEX Sr. No Topics covered Page No. 1 Company Law 3 2 Reserve Bank of India 4 4 Income Tax 5 5 Service Tax 6 7 Summary of Judgments

More information

T. P. Ostwal & Associates (Regd.) Key Budget Proposal Budget 2012 CHARTERED ACCOUNTANTS

T. P. Ostwal & Associates (Regd.) Key Budget Proposal Budget 2012 CHARTERED ACCOUNTANTS IMPORTANT AMENDMENTS & MAJOR DIRECT TAX PROPOSALS IN FINANCE BILL, 2012 CORPORATE TAX No change in the head corporate tax. Extension of sunset date for tax holiday for power sector to 2013; Initial depreciation

More information

Institute of Chartered Accountants of India. Taxation of Foreign Remittances

Institute of Chartered Accountants of India. Taxation of Foreign Remittances Institute of Chartered Accountants of India Taxation of Foreign Remittances 17.02.2017 Presented by CA.Shweta Ajmera cashwetaajmera@gmail.com "It was only for the good of his subjects that he collected

More information

Indian High Court rules on principles for admissibility of transfer pricing appeals by High Courts

Indian High Court rules on principles for admissibility of transfer pricing appeals by High Courts 29 June 2018 Global Tax Alert News from Transfer Pricing Indian High Court rules on principles for admissibility of transfer pricing appeals by High Courts NEW! EY Tax News Update: Global Edition EY s

More information

Seminar on NRI Taxation

Seminar on NRI Taxation Seminar on NRI Taxation Section 9(1) and Treaty Provisions PP Anand April 2017 Income deemed to accrue or arise in India [Section 9] Income deemed to accrue or arise in India Section 9 Following categories

More information

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA FULL DAY SEMINAR ON TDS

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA FULL DAY SEMINAR ON TDS THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA WESTERN INDIA REGIONAL COUNCIL FULL DAY SEMINAR ON TDS 12 TH FEB 2011 J S LODHA AUDITORIUM, CUFFE PARADE, MUMBAI Atul T. Suraiya asuraiya@hotmail.com JUSTICE

More information

Click to Close. Click to Print. Case Tracker. Passed by the. Date COMMISSIONER MUMBAI-II. Airline

Click to Close. Click to Print. Case Tracker. Passed by the. Date COMMISSIONER MUMBAI-II. Airline Click to Print Click to Close 2017-TIOL-3894-CESTAT-MUM IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL WEST ZONAL BENCH, MUMBAI Case Tracker DHL LOGISTICS PVT LTD Vs CCE [CESTAT] Appeal No.

More information

Section 14A and Rule 8D

Section 14A and Rule 8D Special Story recent Controversies in income tax assessments Sameer G. Dalal, Advocate Section 14A and Rule 8D When the case of an assessee is selected for scrutiny, it is always the endeavour of the Assessing

More information

CS Professional Programme Solution June Paper - 6 Module-III Advanced Tax Laws and Practice Part-A

CS Professional Programme Solution June Paper - 6 Module-III Advanced Tax Laws and Practice Part-A CS Professional Programme Solution June - 2013 Paper - 6 Module-III Advanced Tax Laws and Practice Part-A Answer: 2013 - June [1] (a) (i) Ch-14 The statement is True. As per Section 115 BBD, dividend from

More information

EY Tax Alert. Executive summary

EY Tax Alert. Executive summary 7 October 2015 EY Tax Alert Karnataka HC rules on availability of foreign tax credit relief where the income is exempt from Indian taxes under incomelinked incentive scheme Executive summary Tax Alerts

More information

The Reckoner. keeping you ahead June 2009

The Reckoner. keeping you ahead June 2009 The Reckoner. keeping you ahead June 2009 May 2010 Contents INCOME TAX... 3 DOMESTIC TAXATION... 3 GENERAL... 3 CIRCULARS... 4 CASE LAWS... 10 INTERNATIONAL TAXATION... 18 CASE LAWS... 18 ACCOUNTS, AUDIT

More information

Singapore-Thailand revised income tax treaty and protocol enter into force

Singapore-Thailand revised income tax treaty and protocol enter into force 14 March 2016 Global Tax Alert Singapore-Thailand revised income tax treaty and protocol enter into force EY Global Tax Alert Library Access both online and pdf versions Executive summary On 15 February

More information

Decisions and updates

Decisions and updates Article 10, 11 and 13 - Recent Decisions and updates Seminar on Recent Updates in International Tax WIRC ICAI 23 February 2013, Mumbai CA. Shabbir Motorwala 1 Contents Overview Recent updates Recent decisions

More information

Sharing insights. News Alert 31 May, No PE created by liaison office in absence of any violation noted by RBI. In brief. Facts.

Sharing insights. News Alert 31 May, No PE created by liaison office in absence of any violation noted by RBI. In brief. Facts. www.pwc.com/in Sharing insights News Alert 31 May, 2012 No PE created by liaison office in absence of any violation noted by RBI In brief In the recent case of Metal One Corporation 1 (the assessee), the

More information

Key Summary: Delhi HC ruled

Key Summary: Delhi HC ruled Limited (Canada) Nortel NetworksInc (Luxemburg) SA India International Inc. (Taxpayer) International Finance &Holding Key Summary: Delhi HC ruled that offshore supply of equipments neither lead to attribution

More information

EY Tax Alert. Executive summary

EY Tax Alert. Executive summary 5 December 2014 EY Tax Alert Karnataka HC rules discount allowed to distributors for prepaid SIM cards and recharge vouchers not liable for withholding as commission or brokerage Executive summary Tax

More information

Public Interest Litigation Petitions filed by AIFTP & Associate Members

Public Interest Litigation Petitions filed by AIFTP & Associate Members Public Interest Litigation Petitions filed by AIFTP & Associate Members Sr. 1. All India Federation of Tax 1052 of (1994) 209 ITR Circular 681 946-TDS on Govt. amended the Law. Practitioners jointly with

More information

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL No. 5114/2007. Commissioner of Income-tax, New Delhi

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL No. 5114/2007. Commissioner of Income-tax, New Delhi IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL No. 5114/2007 Commissioner of Income-tax, New Delhi Appellant(s) versus M/s Eli Lilly & Company (India) Pvt. Ltd. Respondent(s) with

More information

AAR ruling on taxability of reimbursement of salary costs of seconded employees to group company not based on proper reasoning Madras High Court

AAR ruling on taxability of reimbursement of salary costs of seconded employees to group company not based on proper reasoning Madras High Court www.pwc.com/in Sharing insights News Alert 16 December, 2011 AAR ruling on taxability of reimbursement of salary costs of seconded employees to group company not based on proper reasoning Madras High Court

More information

TDS on Payments to Non Residents Law and Procedures

TDS on Payments to Non Residents Law and Procedures TDS on Payments to Non Residents Law and Procedures Regional Conference of CAs on GST & Income-tax Rajkot Branch of WIRC, Institute of Chartered Accountants of India 16 th December 2017 Rutvik Sanghvi

More information

India s Delhi Tribunal rules on permanent establishment, profit attribution and royalty taxation

India s Delhi Tribunal rules on permanent establishment, profit attribution and royalty taxation 15 May 2013 Global Tax Alert India s Delhi Tribunal rules on permanent establishment, profit attribution and royalty taxation Executive summary This Tax Alert summarizes a recent ruling of the Delhi Income

More information

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE. BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER and SHRI JASON P BOAZ, ACCOUNTANT MEMBER

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE. BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER and SHRI JASON P BOAZ, ACCOUNTANT MEMBER IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER and SHRI JASON P BOAZ, ACCOUNTANT MEMBER ITA No.726/Bang/2014 (Assessment year: 2005-06) M/s.B & B Infotech

More information

Foreign Collaboration

Foreign Collaboration CHAPTER 17 Foreign Collaboration Some Key Points (a) The tax liability of a foreign collaborator and the Indian counter part is dependent on their residential status and the applicable provisions of DTAA,

More information

No TDS on general provision for expenses, made on estimate basis, at the end of the financial year

No TDS on general provision for expenses, made on estimate basis, at the end of the financial year No TDS on general provision for expenses, made on estimate basis, at the end of the financial year 1 [Published in 386 ITR (Jour) 8 (Part-1)] By S.K. Tyagi Recently, I was approached by one of my clients

More information

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI G. D. AGRAWAL, PRESIDENT AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI G. D. AGRAWAL, PRESIDENT AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER 1 ITA Nos. 6675 & 6676/Del/2015 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI G. D. AGRAWAL, PRESIDENT AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No. 6675/DEL/2015 ( A.Y 2013-14)

More information

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI N.S. SAINI, HON BLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HON BLE JUDICIAL MEMBER (Asst. Year : 2009-10) DCIT, Circle-1(1), Panaji.

More information

SIRC of ICAI CPE Study Circle Meeting Wednesday Issues!!! CA. V Sathyanarayanan, Kochi

SIRC of ICAI CPE Study Circle Meeting Wednesday Issues!!! CA. V Sathyanarayanan, Kochi SIRC of ICAI CPE Study Circle Meeting Wednesday 20.01.2016 Issues!!! CA. V Sathyanarayanan, Kochi Foreign Remittance Whether to liable to tax under The Income Tax Act No Yes No TDS No Whether liable to

More information

for private circulation only

for private circulation only NEWSLETTER M. V. DAMANIA & Co. Chartered Accountants CONTENTS DIRECT TAX Kamal Wahal - Delhi High Court Tarsen Kumar - P & H High Court INTERNATIONAL TAX Bosch Ltd. - Bangalore Tribunal Abbey Business

More information

MODE OF CITATION : [2015] 153 ITD

MODE OF CITATION : [2015] 153 ITD REGULAR BENCH 625-722 VOL. 153 ISSUE 6 JUNE 23 - JULY 7, 2015 TOTAL PAGES [164] ISSN : 0972-8155 AUTHORISED FORTNIGHTLY OF INCOME-TAX APPELLATE TRIBUNAL (MINISTRY OF LAW & JUSTICE) MODE OF CITATION : [2015]

More information

Updates on TDS. CA N. C. Hegde, Deloitte Haskins & Sells. 17 April Borivli Kandivali (East) Study Circle

Updates on TDS. CA N. C. Hegde, Deloitte Haskins & Sells. 17 April Borivli Kandivali (East) Study Circle Updates on TDS CA N. C. Hegde, Deloitte Haskins & Sells 17 April 2011 Borivli Kandivali (East) Study Circle Contents Overview of TDS provisions Sections 192, 194A, 194C, 194H, 194I, 194J Sec 195 Non-residents

More information

CENVAT CREDIT Recent Court Rulings Presented by: Ca. Jayesh Gogri

CENVAT CREDIT Recent Court Rulings Presented by: Ca. Jayesh Gogri CENVAT CREDIT Recent Court Rulings Presented by: Ca. Jayesh Gogri 7/2/13 CA JAYESH Organised GOGRI by: 1 Wrong availment of CENVAT Credit and interest thereon Mr. Inamdaar was engaged in the manufacture

More information

FINAL MAY 2018 INDIRECT TAX LAWS

FINAL MAY 2018 INDIRECT TAX LAWS FINAL MAY 2018 INDIRECT TAX LAWS Test Code F73 Branch (MULTIPLE) (Date : 25.02.2018) (50 Marks) Note: All questions are compulsory. Question 1 (5 Marks) This supply would be regarded as mixed supply, since

More information

Cost sharing by companies and Service Tax

Cost sharing by companies and Service Tax Cost sharing by companies and Service Tax CA Madhukar N. Hiregange & CA Roopa Nayak Background A group company could procure resources such as server space, software licenses, office space and various

More information

Mumbai Tribunal rules reimbursement of expenses on secondment of employees not FTS

Mumbai Tribunal rules reimbursement of expenses on secondment of employees not FTS 20 September 2013 2013mber 2012 EY Tax Alert Mumbai Tribunal rules reimbursement of expenses on secondment of employees not FTS Executive summary Tax Alerts cover significant tax news, developments and

More information

in NBFCs Presented by : Hitesh R. Shah Chartered Accountant 28 January

in NBFCs Presented by : Hitesh R. Shah Chartered Accountant 28 January Typical Tax issues in NBFCs Presented by : Hitesh R. Shah Chartered Accountant 28 January 2013 1 It is a company registered under the Companies Act, 1956 and is engaged in the business of financing whether

More information

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI D BENCH MUMBAI BENCHES, MUMBAI BEFORE SHRI VIJAY PAL RAO, JM & SHRI RAJENDRA, AM

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI D BENCH MUMBAI BENCHES, MUMBAI BEFORE SHRI VIJAY PAL RAO, JM & SHRI RAJENDRA, AM IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI D BENCH MUMBAI BENCHES, MUMBAI BEFORE SHRI VIJAY PAL RAO, JM & SHRI RAJENDRA, AM Reliance Industrial Infrastructure Ltd 5 th Floor, NKM International House 178

More information

India s Supreme Court establishes principles on evaluating real accrual of income for levy of tax

India s Supreme Court establishes principles on evaluating real accrual of income for levy of tax 16 October 2013 India s Supreme Court establishes principles on evaluating real accrual of income for levy of tax Executive summary This Tax Alert summarizes a recent ruling of the Supreme Court of India

More information

WHITE PAPER - WHETHER NON-RESIDENT FOREIGN COMPANIES ARE REQUIRED TO FILE RETURN OF INCOME IN INDIA.

WHITE PAPER - WHETHER NON-RESIDENT FOREIGN COMPANIES ARE REQUIRED TO FILE RETURN OF INCOME IN INDIA. WHITE PAPER - WHETHER NON-RESIDENT FOREIGN COMPANIES ARE REQUIRED TO FILE RETURN OF INCOME IN INDIA www.rsmindia.in 1.0 BACKGROUND 1.1 Taxation of non-residents has been a vexed issue for a long time.

More information

TDS on payments to non-residents

TDS on payments to non-residents TDS on payments to non-residents 291 ITR (Jour.) 18 (Part-5) -S.K. Tyagi 1 Of late, it has been observed that with the growth of the economy of the country the number of transactions of the tax-payers

More information

» Excise - Electronic payment of refund/ rebate» Grace period of 5 days for remitting of monthly Provident Fund contributions removed

» Excise - Electronic payment of refund/ rebate» Grace period of 5 days for remitting of monthly Provident Fund contributions removed January 2016 / Volume I / ASA The key amendments introduced in statutes, policies and procedures in respect of Direct Tax, Indirect Tax, Corporate Laws & Accounting Standards, Foreign Exchange Management

More information

2 the order passed by the AO dated for AY , on the following grounds:- 1 : Re.: Treating the reimbursement of the expenses as income

2 the order passed by the AO dated for AY , on the following grounds:- 1 : Re.: Treating the reimbursement of the expenses as income IN THE INCOME TAX APPELLATE TRIBUNAL "L" Bench, Mumbai Shri C.N. Prasad (Judicial Member) & Before Shri Ashwani Taneja (Accountant Member) ITA No.4659/Mum/2014-2009-10 ITA No.385/Mum/2016-2011-12 Dy.CIT

More information

J.M.PATEL COLLEGE OF COMMERCE 1

J.M.PATEL COLLEGE OF COMMERCE 1 UNDERSTANDING-- TAXATION SYSTEM TO UNDERSTAND TAXATION SYSTEM IN TOTALITY ONE HAS TO UNDERSTAND ALL OF THE FOLLOWING The Core 1 Taxation 2 3 5 4 6 8 7 1. Act 2. Rules 3. Notifications 4. Circulars The

More information

SEMINAR ON SECTION 14A DISALLOWANCE AND DEEMED DIVIDEND

SEMINAR ON SECTION 14A DISALLOWANCE AND DEEMED DIVIDEND SEMINAR ON SECTION 14A DISALLOWANCE AND DEEMED DIVIDEND Deemed Dividend-Legislative Intent The insertion of section 14A in 2001 was mainly done to make the following Supreme Court judgments non functional:

More information

[2016] 68 taxmann.com 41 (Mumbai - CESTAT) CESTAT, MUMBAI BENCH. Commissioner of Service Tax. Vs. Lionbridge Technologies (P.) Ltd.

[2016] 68 taxmann.com 41 (Mumbai - CESTAT) CESTAT, MUMBAI BENCH. Commissioner of Service Tax. Vs. Lionbridge Technologies (P.) Ltd. [2016] 68 taxmann.com 41 (Mumbai - CESTAT) CESTAT, MUMBAI BENCH Commissioner of Service Tax Vs. Lionbridge Technologies (P.) Ltd.* M.V. RAVINDRAN, JUDICIAL MEMBER ORDER NO. A/85873/16/SMB AND OTHERS FEBRUARY

More information

UNDERSTANDING-- TAXATION SYSTEM

UNDERSTANDING-- TAXATION SYSTEM UNDERSTANDING-- TAXATION SYSTEM TO UNDERSTAND TAXATION SYSTEM IN TOTALITY ONE HAS TO UNDERSTAND ALL OF THE FOLLOWING The Core 1 3 5 8 7 1. Act 2. Rules 3. Notifications 4. Circulars The outer effects affecting

More information

News Alert* pwc. Tax & Regulatory Services. 2 March, *connectedthinking

News Alert* pwc. Tax & Regulatory Services. 2 March, *connectedthinking Tax & Regulatory Services News Alert* 2 March, 2010 Taxability of consideration received upon assignment of rights and obligations under an assignment agreement - held to be business profits not taxable

More information

The relevant extract of Calcutta High Court order in the case of Balmer Lawrie & Co Ltd (1995) 215 ITR 249 (Cal) is reproduced below:

The relevant extract of Calcutta High Court order in the case of Balmer Lawrie & Co Ltd (1995) 215 ITR 249 (Cal) is reproduced below: Caselaws Analysis: The relevant extract of Calcutta High Court order in the case of Balmer Lawrie & Co Ltd (1995) 215 ITR 249 (Cal) is reproduced below: The relief under sec 80-I of the Act has to be calculated

More information

Sharing insights. News Alert 23 May, Payment made for airborne geophysical survey services is not FTS. In brief. Facts.

Sharing insights. News Alert 23 May, Payment made for airborne geophysical survey services is not FTS. In brief. Facts. www.pwc.com/in Sharing insights News Alert 23 May, 2012 Payment made for airborne geophysical survey services is not FTS In brief In the recent case of De Beers India Minerals Pvt. Ltd. 1 (the assessee),

More information

PAPER 2.05 INDIA OPTION

PAPER 2.05 INDIA OPTION THE ADVANCED DIPLOMA IN INTERNATIONAL TAXATION June 2016 PAPER 2.05 INDIA OPTION Suggested Solutions PART A Question 1 Under Indian tax law, profits of a non-resident are taxable if they accrue in India

More information

EY Tax Alert. Executive summary

EY Tax Alert. Executive summary 3 November 2014 EY Tax Alert Delhi Tribunal rules on deduction disallowance and deduction neutrality on application of non-discrimination article of tax treaties Executive summary Tax Alerts cover significant

More information

India releases revised Direct Taxes Code 2013

India releases revised Direct Taxes Code 2013 4 April 2014 EY Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International- Tax/Tax-alert-library#date India

More information