EY Tax Alert. Executive summary. Supreme Court rules on characterization of property rental income as income from house property.
|
|
- Tiffany Sullivan
- 5 years ago
- Views:
Transcription
1 16 May 2017 EY Tax Alert Supreme Court rules on characterization of property rental income as income from house property Executive summary Tax Alerts cover significant tax news, developments and changes in legislation that affect Indian businesses. They act as technical summaries to keep you on top of the latest tax issues. For more information, please contact your EY advisor. This Tax Alert summarizes a recent ruling of the Supreme Court (SC) in the case of Raj Dadarkar & Associates (Taxpayer) [1], wherein the issue before the SC was whether property rental income received by the Taxpayer was assessable under the head Income from House Property (House Property head) or the head Profits and Gains from Business or Profession (Business Income head). The characterization of the head of income is critical under the Indian Tax Laws (ITL), as it determines the methodology of computation of taxable income. Generally, assessment under the Business Income head leads to lower taxable income due to depreciation allowance and deduction for expenses. In the present case, the Taxpayer, a partnership firm, was set up with the object of taking premises on rent and sub-letting the same. It acquired certain premises on long-term lease and developed them into a marketplace by constructing shops and stalls. The units were sub-let with certain amenities such as electricity, sanitation, security, water etc. A part of the monthly amount was collected as service charges. The taxpayer claimed its income from rent and service charges as taxable under the Business Income head on the basis of earlier SC rulings in the cases of Chennai Properties & Investments (Chennai Properties ruling) [2] and Rayala Corporation Pvt. Ltd [3]. (Rayala Corporation ruling), wherein the SC had held that where the main object of the taxpayer as per its Memorandum of Association (MoA), as also the actual activities carried on by the taxpayer, comprised only acquisition and holding of properties and letting them out, the property rental income is assessable under the Business Income head. [1] Civil Appeal No of 2017 [2] [(2015) 373 ITR 673 (SC)] [3] [TS-437-SC-2016]
2 The SC, in the present case, held that the object clause of the business is not a determinative factor to arrive at the conclusion that the income is income from business and that classification depends on the facts of each case. The SC noted that, as per the undisputed finding of facts, the Taxpayer was not engaged in any systematic or organized activity of providing services to the occupiers so as to constitute its income as income from business. Also, the Taxpayer did not furnish sufficient material to show that its entire income or substantial income was from letting out of the property so as to constitute the principal activity of the Taxpayer. On the facts of the case, the SC concluded that the facts on hand were distinguishable compared to its earlier ruling in the case of Chennai Properties, while the facts were comparable to its earlier ruling in the case of East India Land Development Trust (East India ruling) [4], wherein property rental income was assessable under the House Property head, as the core or main object and activity of the company was not letting out of property but developing and setting up of markets. As compared to the House Property head, the Business Income head permits depreciation allowance and deduction for a large number of expenses. This usually results in taxable income being lower than the one computed under the House Property head. The question which has been a subject matter of debate for a while is whether rental income earned by a taxpayer from letting out the properties held by it as an owner would be taxable under the House Property head or the Business Income head. Tests which are to be applied for determining the real nature of income are laid down in judicial decisions on the interpretation of the provisions of these two heads. The judicial developments on this controversy may be traced as under: In the East India ruling, the taxpayer was incorporated with the object of buying and developing landed properties and promoting and developing markets. It earned rental income from some of the shops and stalls developed by it. The SC held that property rental income, in these facts, was assessable under the House Property head, as the core or main object and activity of the company was not letting out of property but developing and setting up of markets. Judicial developments The ITL classifies income under five heads and provides the methodology of computation of taxable income under each head. The House Property head is attracted for property rental income in a case where a taxpayer is the owner or deemed owner of [5] the property, other than properties which the taxpayer may occupy for the purposes of any business or profession carried on by it. Under this head, the ITL merely permits a standard deduction [6] and deduction for certain specified expenses (including interest). [4] [(1961) 42 ITR 49 (SC)] [3-judge Bench] In Sultan Brothers (P) Ltd [7]. (Sultan Brothers ruling), the taxpayer was incorporated with the object of acquiring land and buildings and turning them into account by construction and reconstruction, decoration, furnishing and maintenance, and by leasing and selling the same. The taxpayer owned a building which it furnished with furniture and fittings for being run as a hotel and let out the fully equipped building to another party for running the hotel. The SC considered the letting out activity as incidental to the development of the hotel building. The SC held that the activity of leasing did not, by itself, constitute a core business activity. The SC relied on its earlier ruling in the case of East India and held that the property rental income, though from a commercial asset, was assessable under the House Property head. [5] Including special circumstances under which a taxpayer is deemed to be owner of the house property for the purposes of the ITL (Illustratively, transfer of property by way of lease for a term of not less than twelve years) [6] Currently 30% of rental income (net of property taxes paid) [7] [(1964) 51 ITR 353 (SC)][ 5-judge Bench]
3 In the Chennai Properties ruling, there was letting out of bare premises. However, having regard to the fact that the main object of the taxpayer as per its MoA), as also the actual activities carried on by the taxpayer, comprised only acquisition and holding of properties and letting them out with no other activities being carried on by the Taxpayer, the SC held that owning and letting out of properties was part of the taxpayer s core trading operations and, hence, the property rental income was assessable under the Business Income head [8]. The SC distinguished its earlier rulings in the cases of East India and Sultan Brothers on the ground that, in those cases, the main objective of the company was never letting out of properties, but developing and setting up the properties. Facts of the case The Taxpayer is a partnership firm registered with the main object, as borne out by its partnership deed, of: (a.) Acquiring premises on rent and subletting the same; or (b.) Undertaking any other business activity. The Taxpayer, in a bid, acquired the ground floor of buildings constructed by the Maharashtra Housing and Area Development Authority (MHADA) on a monthly license in the form of a right to run and maintain the municipal market in the said area. The premises allotted to the Taxpayer was a bare structure with pillars and columns and the Taxpayer converted the area into 95 shops and 30 stalls of different carpet areas by constructing walls, common amenities like toilet blocks, etc., at a substantial cost. The Taxpayer also obtained the necessary licenses under the Shops and Establishment Act and other permissions from the Government to carry on trading activities on the said premises. [8] To the similar effect, the SC ruling, in the case of Rayala Corporation (P) Ltd. [TS-437-SC-2016], which applied the ratio of the SC in the Chennai Properties ruling Additionally, the Taxpayer was responsible for the day-to-day maintenance, cleanliness and upkeep of the market premises and incurred expenses on water charges, electricity charges, taxes and repair charges. The Taxpayer sub-licensed the premises to small vendors and businessmen and collected the following receipts as consideration for the sub-licensing activity: Compensation for sub-license representing monthly charges payable by the Taxpayer to MHADA. Leave and license fees. Service charges for providing various services, including security, utilities etc. The Taxpayer had been offering the income from the sub-licensing activity under the Business Income head and the income had been assessed accordingly. However, for the tax year , the Tax Authority assessed the sub-licensing income of the Taxpayer under the House Property head on the ground that the Taxpayer was deemed owner of the property and the income received from the market stalls was income from house property. The First Appellate Authority ruled in the Taxpayer s favor and upheld assessment under the Business Income head. On further appeal by the Tax Authority, the Mumbai Income Tax Appellate Tribunal (Tribunal) ruled in favor of the Tax Authority. On further appeal by the Taxpayer, the Bombay High Court (HC) upheld that the Taxpayer acquired the properties to be developed and used as a marketplace on a license basis for a period of more than twelve months, thereby making the Taxpayer deemed owner of the property for income tax purposes to trigger taxation under the House Property head. Being aggrieved, the Taxpayer further appealed to the SC.
4 Issue before the SC The following are the main questions considered by the SC: 1. Whether the order of the Tribunal was perverse, being based on surmises, conjectures and suspicions by taking into account incorrect, irrelevant and extraneous considerations. 2. Whether the license income earned by the Taxpayer was required to be taxed under the House Property head or the Business Income head. Taxpayer s contentions Consistent with the chartered document of the Taxpayer, the main object of the Taxpayer was to take the premises on rent and sub-let the same. The subletting of the premises was a part of the predominant object and, thus, constituted the business of the Taxpayer. Income earned from sublicencing is business income. The sole intention of the Taxpayer was to establish a retail hub wherein various small retailers could come together and carry on their businesses in an organized and systematic manner. Sub-licensing was the sole activity of the Taxpayer and the Taxpayer maintained full and complete records of these business activities. Right from the year 1999 to 2004, the Taxpayer has been offering the sublicensing income under the Business Income head. The HC s ruling restricted itself to determination of the issue of whether the Taxpayer qualified to be deemed owner of the premises and omitted to consider the contention that the main business of the Taxpayer was to take premises on rent and sub-let the same to earn income therefrom. Even if the Taxpayer is deemed owner of the premises, as the letting out activity is the main business activity of the Taxpayer, applying the dominant test, the income generated from sub-licensing should be treated under the Business Income head, and not under the House Property head. The Taxpayer s case is covered by the ratio of the SC s rulings in the Chennai Properties and Rayala Corporation cases. SC s ruling The SC ruled against the Taxpayer and held that, considering the facts of the Taxpayer s case, property rental income received by the Taxpayer was assessable under the House Property head for the following reasons: Characterization of income from house property or as business income depends upon the facts of a particular case. The test to be applied is: (a.) If there is income from leasing out of premises and collecting rent, normally, such income would be treated under the House Property head if the taxpayer is the owner of such building or land appurtenant thereto. (b.) Under certain circumstances, however, the income derived from letting out of premises can be treated as business income if the letting out activity itself is the business of the taxpayer. The object clause of the business is not a determinative factor to arrive at the conclusion that the income is income from business. Classification would still be dependent on the facts of each case. For this proposition, the SC relied on its earlier rulings in the East India and Sultan Brothers cases. The Tribunal, the ultimate fact-finding authority, had found that the service charges received were inseparable from the basic charges of rent. The SC s decision in the case of Shambu Investments Pvt. Ltd., was held applicable by the Tribunal. Also, it was undisputed that the Taxpayer did not undertake any systematic or organized activity of providing services to the occupiers, which can constitute receipt
5 as business income for the Taxpayer. These finding of fact attained finality. Apart from relying upon the object clause in the partnership deed, the Taxpayer did not furnish any material to substantiate that its entire income or substantial income was from letting out of the property as the principal business activity. The decision applicable to the facts of the case is that of the SC in the East India case. In the East India ruling, rent income was earned by the taxpayer which was formed with the object of developing landed properties. The income was taxed under the House Property head, as it was received by the company whose object was and which had undertaken the activity of developing and setting up of the properties. The Taxpayer s reliance on the SC decisions in the Chennai Properties and Rayala Corporation cases was of no help. In those cases, the taxpayer s income was entirely from letting out of properties, which was the business of the taxpayer. In the present case, the Taxpayer could not establish that its substantial income was from letting out of the property, which was its principal business activity. Comments On the facts of the case, the SC held that income earned by the Taxpayer, including incidental service charges, was chargeable as house property income. While observing that the object clause of the entity was not conclusive, the SC, in the present case, held that the object of the Taxpayer was to take premises on rent and sub-let the same. The SC also noted that there was no dispute on the proposition that the Taxpayer had not undertaken any systematic or organized activity of providing services and the services so provided were inseparable from the basic letting out of the property. The SC, on facts, concluded that its earlier rulings in the Chennai Properties and Rayala Corporation cases were distinguishable. The SC s decision, along with its earlier rulings referred above, will need critical attention by taxpayers earning property income. The tax implications of property income may get significantly influenced by its characterization as business or property income.
6 Our offices Ahmedabad 2nd floor, Shivalik Ishaan Near C.N. Vidhyalaya Ambawadi Ahmedabad Tel: Fax: Bengaluru 6th, 12th & 13th floor UB City, Canberra Block No.24 Vittal Mallya Road Bengaluru Tel: Fax: Ground Floor, A wing Divyasree Chambers # 11, O Shaughnessy Road Langford Gardens Bengaluru Tel: Fax: Chandigarh 1st Floor, SCO: Sector 9-C, Madhya Marg Chandigarh Tel: Fax: Chennai Tidel Park, 6th & 7th Floor A Block (Module 601, ) No.4, Rajiv Gandhi Salai Taramani, Chennai Tel: Fax: Delhi NCR Golf View Corporate Tower B Sector 42, Sector Road Gurgaon Tel: Fax: rd & 6th Floor, Worldmark-1 IGI Airport Hospitality District Aerocity, New Delhi Tel: Fax Hyderabad Oval Office, 18, ilabs Centre Hitech City, Madhapur Hyderabad Tel: Fax: Jamshedpur 1st Floor, Shantiniketan Building Holding No. 1, SB Shop Area Bistupur, Jamshedpur Tel: BSNL: Kochi 9th Floor, ABAD Nucleus NH-49, Maradu PO Kochi Tel: Fax: Kolkata 22 Camac Street 3rd Floor, Block C Kolkata Tel: Fax: Mumbai 14th Floor, The Ruby 29 Senapati Bapat Marg Dadar (W), Mumbai Tel: Fax: th Floor, Block B-2 Nirlon Knowledge Park Off. Western Express Highway Goregaon (E) Mumbai Tel: Fax: Pune C-401, 4th floor Panchshil Tech Park Yerwada (Near Don Bosco School) Pune Tel: Fax: Ernst & Young LLP EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata Ernst & Young LLP. Published in India. All Rights Reserved. ED None This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither Ernst & Young LLP nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. 4th & 5th Floor, Plot No 2B Tower 2, Sector 126 NOIDA Gautam Budh Nagar, U.P. Tel: Fax: EY refers to global organization, and/or one or more of the independent member firms of Ernst & Young Global Limited Join India Tax Insights from EY on
Supreme Court rules accumulated losses of amalgamating company to be set off after reducing interest waiver benefit
19 April 2017 EY Tax Alert Supreme Court rules accumulated losses of amalgamating company to be set off after reducing interest waiver benefit Executive summary Tax Alerts cover significant tax news, developments
More informationEY Tax Alert. Executive summary. Delhi Tribunal rules on advertisement and promotion expenses involving use of trademarks as not royalty.
4 April 2017 EY Tax Alert Delhi Tribunal rules on advertisement and promotion expenses involving use of trademarks as not royalty Executive summary Tax Alerts cover significant tax news, developments and
More informationEY Tax Alert. Executive summary
5 January 2018 EY Tax Alert Mumbai Tribunal rules stamp duty value cannot be deemed as consideration while computing capital gains arising on contribution of land by a partner to the partnership firm which
More informationEY Tax Alert. J&K HC rules that contract receipts of a JV result in diversion of income to JV members; receipt not an income of the JV
21 September 2017 EY Tax Alert J&K HC rules that contract receipts of a JV result in diversion of income to JV members; receipt not an income of the JV Tax Alerts cover significant tax news, developments
More informationEY Tax Alert. Executive summary. Chennai Tribunal upholds salary taxation of SARs benefits received from foreign parent of employer.
11 May 2016 EY Tax Alert Chennai Tribunal upholds salary taxation of SARs benefits received from foreign parent of employer Executive summary Tax Alerts cover significant tax news, developments and changes
More informationEY Tax Alert. Supreme Court upholds lease equalization adjustment in finance lease as per the ICAI Guidance Note for tax purposes.
27 April 2018 EY Tax Alert Supreme Court upholds lease equalization adjustment in finance lease as per the ICAI Guidance Note for tax purposes Tax Alerts cover significant tax news, developments and changes
More informationEY Tax Alert. Delhi Tribunal rules guarantee fee income received by foreign parent from Indian subsidiary is taxable in India.
12 December 2017 EY Tax Alert Delhi Tribunal rules guarantee fee income received by foreign parent from Indian subsidiary is taxable in India Tax Alerts cover significant tax news, developments and changes
More informationMoF issues Notifications and Circular for services relating to transportation of goods by vessel
19 April EY Tax Alert MoF issues Notifications and Circular for services relating to transportation of goods by vessel Executive summary Tax Alerts cover significant tax news, developments and changes
More informationEY Tax Alert Delhi High Court upholds weighted R&D deduction for recognized inhouse R&D facility from the date prior to recognition and approval
8 August 2017 EY Tax Alert Delhi High Court upholds weighted R&D deduction for recognized inhouse R&D facility from the date prior to recognition and approval Tax Alerts cover significant tax news, developments
More informationHC denies refund of SAD paid on import of coil sheets sold after corrugation as proflex roof
24 March 2017 EY Tax Alert HC denies refund of SAD paid on import of coil sheets sold after corrugation as proflex roof Executive summary Tax Alerts cover significant tax news, developments and changes
More informationEY Tax Alert Bangalore Tribunal rules on constitution of service PE for services rendered virtually as well as physically
12 July 2017 EY Tax Alert Bangalore Tribunal rules on constitution of service PE for services rendered virtually as well as physically Tax Alerts cover significant tax news, developments and changes in
More informationEY Alert. Kerala High Court quashes 2014 notification amending the Employees Pension Scheme, 1995
31 December 2018 EY Alert Kerala High Court quashes 2014 notification amending the Employees Pension Scheme, 1995 Tax Alerts cover significant tax news, developments and changes in legislation that affect
More informationEY Tax Alert. Mumbai Tribunal rules conversion of compulsory convertible preference shares into equity shares is not transfer.
19 November 2018 EY Tax Alert Mumbai Tribunal rules conversion of compulsory convertible preference shares into equity shares is not transfer Tax Alerts cover significant tax news, developments and changes
More informationEY Tax Alert. Supreme Court reaffirms constitutional validity of Aadhaar PAN linking requirement. Executive summary
27 September 2018 EY Tax Alert Supreme Court reaffirms constitutional validity of Aadhaar PAN linking requirement Tax Alerts cover significant tax news, developments and changes in legislation that affect
More informationEY PAS Alert. Finance bill proposes tax on long-term gains arising on sale of listed equity shares Impact on employee stock option plans
27 February 2018 EY PAS Alert Finance bill proposes tax on long-term gains arising on sale of listed equity shares Impact on employee stock option plans Tax Alerts cover significant tax news, developments
More informationBombay HC upholds non-taxability of deferred consideration on transfer of shares in the absence of accrual
18 April 2016 EY Tax Alert Bombay HC upholds non-taxability of deferred consideration on transfer of shares in the absence of accrual Executive summary Tax Alerts cover significant tax news, developments
More informationDelhi Tribunal rules income of non-resident that is not attributable to PE in India shall still be taxable in India as FTS
12 October 2016 EY Tax Alert Delhi Tribunal rules income of non-resident that is not attributable to PE in India shall still be taxable in India as FTS Executive summary Tax Alerts cover significant tax
More informationEY Tax Alert. Full Bench of Karnataka HC rules incidental interest income earned by Taxpayer is eligible for export incentive scheme deduction
2 November 2017 EY Tax Alert Full Bench of Karnataka HC rules incidental interest income earned by Taxpayer is eligible for export incentive scheme deduction Tax Alerts cover significant tax news, developments
More informationPune Tribunal upholds tax deductibility of MTM exchange fluctuation loss on forex loan borrowed to reduce interest cost and hedge export receivables
19 May 2016 EY Tax Alert Pune Tribunal upholds tax deductibility of MTM exchange fluctuation loss on forex loan borrowed to reduce interest cost and hedge export receivables Executive summary Tax Alerts
More informationEY Tax Alert. Supreme Court negates claim for 100% deduction for fresh five years of new units undertaking substantial expansion.
23 August 2018 EY Tax Alert Supreme Court negates claim for 100% deduction for fresh five years of new units undertaking substantial expansion Tax Alerts cover significant tax news, developments and changes
More informationEY Tax Alert. Executive summary
21 April 2015 EY Tax Alert Delhi High Court declines to interfere with order of lower authorities rejecting Taxpayer s tax holiday claim that units approved under a single license are distinct Executive
More informationEY Tax Alert. Central Government modifies conditions for availing exemption from angel tax provision. Executive summary
29 May 2018 EY Tax Alert Central Government modifies conditions for availing exemption from angel tax provision Tax Alerts cover significant tax news, developments and changes in legislation that affect
More informationAmendments at enactment stage of Finance Bill, 2017
22 March 2017 Amendments at enactment stage of Finance Bill, 2017 The Finance Bill, 2017 (FB 2017 or Bill) was presented by the Finance Minister (FM) on 1 February 2017 [1]. In the wake of representations
More informationThis Tax Alert provides highlights of the Taxation Laws (Amendment) Bill, 2017 ( Bill ) introduced in the Lok Sabha on 31 March 2017.
5 April 2017 EY Tax Alert Highlights of Taxation Laws (Amendment) Bill, 2017 introduced in Lok Sabha Executive summary Tax Alerts cover significant tax news, developments and changes in legislation that
More informationEY Tax Alert. Conversion of company into LLP under LLP Act results in transfer subject to capital gains tax. Executive summary
1 December 2018 EY Tax Alert Conversion of company into LLP under LLP Act results in transfer subject to capital gains tax Tax Alerts cover significant tax news, developments and changes in legislation
More informationEY PAS Alert. Executive summary. Press release dated 27 February
17 April 2018 EY PAS Alert Recent Provident Fund updates PAS Alerts cover significant tax and regulatory changes that affect Indian businesses. Our PAS alert is a summary of technical developments intended
More informationIndian Equalization Levy on digital services to be effective from 1 June 2016, administrative rules notified
31 May 2016 EY Tax Alert Indian Equalization Levy on digital services to be effective from 1 June 2016, administrative rules notified Executive summary Tax Alerts cover significant tax news, developments
More informationEY Tax Alert. Executive summary
01 September 2016 EY Tax Alert AAR affirms availability of India-Mauritius treaty benefit on sale of shares of Indian company, distinguishes Bombay High Court ruling of Aditya Birla Nuvo Executive summary
More informationClarifications on Indirect transfer provisions under the Incometax Act, 1961
22 December 2016 2013mber 2012 EY Tax Alert Clarifications on Indirect transfer provisions under the Incometax Act, 1961 Executive summary Tax Alerts cover significant tax news, developments and changes
More informationEY Tax Alert. Executive summary. Mumbai Tribunal rules on legality and taxability of certain gift transactions by corporates.
24 March 2015 EY Tax Alert Mumbai Tribunal rules on legality and taxability of certain gift transactions by corporates Executive summary Tax Alerts cover significant tax news, developments and changes
More informationEY Tax Alert Central Board of Direct Taxes issues final rules prescribing methodology for determining fair market value of unquoted shares
13 July 2017 EY Tax Alert Central Board of Direct Taxes issues final rules prescribing methodology for determining fair market value of unquoted shares Tax Alerts cover significant tax news, developments
More informationAAR rules that provision of business support services to US affiliate are naturally bundled and are not intermediary services
17 March 2016 EY Tax Alert AAR rules that provision of business support services to US affiliate are naturally bundled and are not intermediary services Executive summary Tax Alerts cover significant tax
More informationEY Tax Alert. Executive summary. Supreme Court rules on year of deductibility of debenture interest paid upfront. 26 March 2015
26 March 2015 EY Tax Alert Supreme Court rules on year of deductibility of debenture interest paid upfront Executive summary Tax Alerts cover significant tax news, developments and changes in legislation
More informationEY Tax Alert. Executive summary
16 March 2018 EY Tax Alert Supreme Court rules on disallowance of expenditure in relation to exempt dividend income from shares held as strategic investment and stock-intrade Tax Alerts cover significant
More informationEY Tax Alert. Executive summary. Bangalore Tribunal rules on deductibility of employee share reward discount cross-charged by foreign parent company
22 October 2013 2013mber 2012 EY Tax Alert Bangalore Tribunal rules on deductibility of employee share reward discount cross-charged by foreign parent company Executive summary Tax Alerts cover significant
More informationKerala HC upholds the constitutional validity of levy of Service tax on admission and access to entertainment event & amusement facilities
3 May 2016 EY Tax Alert Kerala HC upholds the constitutional validity of levy of Service tax on admission and access to entertainment event & amusement facilities Executive summary Tax Alerts cover significant
More informationand Master File implementation
4 November 2017 India Tax Alert News from Transfer Pricing Indian Tax Administration releases final rules on Countryby-Country reporting and Master File implementation Tax Alerts cover significant tax
More informationEY Tax Alert. Executive summary. SC settles certain controversies on profit-linked deduction for export units. 21 December 2016
21 December 2016 EY Tax Alert SC settles certain controversies on profit-linked deduction for export units Executive summary Tax Alerts cover significant tax news, developments and changes in legislation
More informationEY Tax Alert. Executive summary
8 June 2016 EY Tax Alert Delhi HC rules that Service tax shall not be leviable on under construction flats if contract price includes value of land Executive summary Tax Alerts cover significant tax news,
More informationEY Tax Alert. Executive summary
25 January 2016 EY Tax Alert AAR rules that transfer of shares of Indian subsidiary by a Mauritius company to a Singapore group entity is not a tax avoidant transaction Executive summary Tax Alerts cover
More informationCBDT introduces form for employee investment declarations and extends due date for quarterly withholding statements
4 May 2016 EY Tax Alert CBDT introduces form for employee investment declarations and extends due date for quarterly withholding statements Executive summary Tax Alerts cover significant tax news, developments
More informationEY Tax Alert. Executive summary
10 October 2014 EY Tax Alert CBDT Circular on threshold limit for transfer of technical manpower to new SEZ unit for availing profit-linked deduction Executive summary Tax Alerts cover significant tax
More informationEY Tax Alert. Mumbai Tribunal rules intercompany
17 December 2018 EY Tax Alert Mumbai Tribunal rules intercompany deposits between sister-subsidiaries not deemed dividend under domestic law; rules on application of tax treaty provisions in hands of Mauritius
More informationMumbai 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 informationEY Regulatory Alert. Executive summary. SEBI releases Discussion Paper on review of framework for Institutional Trading
5 August 2016 EY Regulatory Alert SEBI releases Discussion Paper on review of framework for Institutional Trading Platform for inviting comments from public on the changes proposed Executive summary Regulatory
More informationMumbai Tribunal rules charterer includes slot charter arrangement for availing treaty benefit under Article 8 of India Malaysia DTAA
22 July 2014 EY Tax Alert Mumbai Tribunal rules charterer includes slot charter arrangement for availing treaty benefit under Article 8 of India Malaysia DTAA Executive summary Tax Alerts cover significant
More informationEY Tax Alert. Executive summary
3 July 2015 EY Tax Alert SC rules on presumptive taxation; activities inextricably linked with prospecting, extraction or production of mineral oil eligible for presumptive taxation Executive summary Tax
More informationEY Tax Alert Indian tax administration issues final rules on certain aspects for determining buy-back tax in India Executive summary
18 October 2016 EY Tax Alert Indian tax administration issues final rules on certain aspects for determining buy-back tax in India Executive summary Tax Alerts cover significant tax news, developments
More informationEY Tax Alert. Executive summary
19 September 2014 EY Tax Alert Bombay HC decides - CENVAT credit refund ineligible in respect of onsite services provided by foreign subsidiaries to overseas clients prior to 27 February 2010, as the same
More informationEY 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 informationMumbai Tribunal rules on DAPE in case of marketing and distribution activities carried out by an Indian branch for group companies
4 July 2013 2013mber 2012 EY Tax Alert Mumbai Tribunal rules on DAPE in case of marketing and distribution activities carried out by an Indian branch for group companies Executive summary Tax Alerts cover
More informationEY Tax Alert. CBEC releases four Rules approved by GST Council and issues Notifications under Central and Integrated GST.
21 June 17 EY Tax Alert CBEC releases four Rules approved by GST Council and issues Notifications under Central and Integrated GST Tax Alerts cover significant tax news, developments and changes in legislation
More informationEY Tax Alert. Executive summary
5 April 2016 EY Tax Alert CESTAT rules that Service tax is not leviable under reverse charge mechanism on salary and other costs reimbursed by the Indian head office to its foreign branch Executive summary
More informationGuidance Note on FATCA and CRS dated 30 November Key clarifications
7 December 2016 EY Tax Alert Guidance Note on FATCA and CRS dated 30 November 2016 - Key clarifications Executive summary Tax Alerts cover significant tax news, developments and changes in legislation
More informationDelhi Tribunal rules on indirect transfer of shares on transaction undertaken in 2006
15 March 2017 EY Tax Alert Delhi Tribunal rules on indirect transfer of shares on transaction undertaken in 2006 Executive summary Tax Alerts cover significant tax news, developments and changes in legislation
More informationGST: How it will impact advertising budgets? June 2017
GST: How it will impact advertising budgets? June 2017 Background The levy of GST will have diverse impacts across sectors, and this could impact their ability to spend on advertising The objective of
More informationTax Alert Key amendments at enactment stage of Finance Bill, 2018
14 March 2018 Tax Alert Key amendments at enactment stage of Finance Bill, 2018 Executive Summary The Finance Bill, 2018 (FB 2018 or Bill) was presented by the Finance Minister (FM) on 1 February 2018
More informationBombay HC rules that appropriate State for levy and collection of CST is the State from where movement of goods commences
20 January 2017 EY Tax Alert Bombay HC rules that appropriate State for levy and collection of CST is the State from where movement of goods commences Executive summary Tax Alerts cover significant tax
More informationCBEC releases draft rules on Assessment and Audit under GST and E-Way Bill. The key highlights of the rules are as under:
18 April 2017 EY GST News Alert CBEC releases draft rules on Assessment and Audit under GST and E-Way Bill Executive summary This Alert provides an insightful coverage of news related to GST and recent
More informationControl premium in India. Ernst & Young LLP July 2017
Control premium in India Ernst & Young LLP July 2017 Executive summary Control premium: Concept Control premium is the difference between the pro-rata controlling interest and the pro-rata non-controlling
More informationCBDT releases fifth round of FAQs on Income Declaration Scheme, 2016
19 August 2016 EY Tax Alert CBDT releases fifth round of FAQs on Income Declaration Scheme, 2016 Executive summary Tax Alerts cover significant tax news, developments and changes in legislation that affect
More informationEY Tax Alert. Executive summary. Mumbai Tribunal rules write-down of investment loss allowable if a direct and proximate nexus exists with a business
21 April 2014 EY Tax Alert Mumbai Tribunal rules write-down of investment loss allowable if a direct and proximate nexus exists with a business Executive summary Tax Alerts cover significant tax news,
More informationEY Tax Alert. Executive summary. CBDT provides clarifications on Direct Tax Dispute Resolution Scheme, September 2016
13 September 2016 EY Tax Alert CBDT provides clarifications on Direct Tax Dispute Resolution Scheme, 2016 Executive summary Tax Alerts cover significant tax news, developments and changes in legislation
More informationGovernment of India amends Income Computation and Disclosure Standards and also defers them by one year to tax year
3 October 2016 EY Tax Alert Government of India amends Income Computation and Disclosure Standards and also defers them by one year to tax year 2016-17 Executive summary Tax Alerts cover significant tax
More informationEY Tax Alert Central Government notifies the transactions of listed equity shares not eligible for Long Term capital gains exemption
6 June 2017 EY Tax Alert Central Government notifies the transactions of listed equity shares not eligible for Long Term capital gains exemption Tax Alerts cover significant tax news, developments and
More informationEY Tax Alert. Executive summary
27 July 2015 EY Tax Alert Chennai Tribunal rules on tax withholding obligation on provision for site restoration, year-end expense provisions and roaming charges Executive summary Tax Alerts cover significant
More informationEY India Defence EY s point of view on amended Foreign Direct Investment (FDI) Policy on Defence Sector
24 June 2016 EY India Defence EY s point of view on amended Foreign Direct Investment (FDI) Policy on Defence Sector Further to the FDI policy reforms in a number of sectors (including defence) as introduced
More informationEY India Real Estate EY s point of view on Amended Foreign Direct Investment (FDI) Policy on Construction Development Sector
16 vember 2015 EY India Real Estate EY s point of view on Amended Foreign Direct Investment (FDI) Policy on Construction Development Sector Q.1 When will be the proposed changes to the FDI Policy in construction
More informationCBDT releases second round of FAQs on Income Declaration Scheme, 2016
28 June 2016 EY Tax Alert CBDT releases second round of FAQs on Income Declaration Scheme, 2016 Executive summary Tax Alerts cover significant tax news, developments and changes in legislation that affect
More informationEY Tax Alert. Executive summary
16 March 2016 EY Tax Alert CESTAT allows credit of Service tax on transportation, treating the place where property in goods is transferred in terms of Sale of Goods Act - as Place of removal Executive
More informationEY Tax Alert. Executive summary
19 August 2015 EY Tax Alert Delhi Tribunal (Larger Bench) rules that interchange fees and merchant establishment discounts earned in respect of credit card transactions not subject to Service tax prior
More informationEY Regulatory Alert. Executive summary
21 April 2015 2013mber 2012 EY Regulatory Alert The Insurance Regulatory and Development Authority of India issues draft regulations for registration and operations of branch offices of foreign reinsurers
More informationEY Tax Alert. Executive summary. Delhi HC rules payment towards live telecast is not royalty. 1 December 2014
1 December 2014 EY Tax Alert Delhi HC rules payment towards live telecast is not royalty Executive summary Tax Alerts cover significant tax news, developments and changes in legislation that affect Indian
More informationAmendments to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, Executive summary
23 September 2013 August 2013 EY Regulatory Alert Amendments to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 Executive summary Regulatory Alerts cover significant
More informationOperational, prudential and reporting norms for Alternative Investment Funds. Executive summary
1 August 2013 EY Regulatory Alert Operational, prudential and reporting norms for Alternative Investment Funds Executive summary This Regulatory Alert summarizes the operational, prudential and reporting
More informationEY Tax Alert. Executive summary
9 January 2015 EY Tax Alert Jabalpur Tribunal rules on interplay between provisions of PE and FTS for taxing installation/commissioning activities in composite contracts Executive summary Tax Alerts cover
More informationCBDT amends rules relating to furnishing information in respect of payments to nonresidents
18 December 2015 EY Tax Alert CBDT amends rules relating to furnishing information in respect of payments to nonresidents Executive summary Tax Alerts cover significant tax news, developments and changes
More informationEY Tax Alert. Executive summary. CBDT sets up a Committee to deal with retroactive indirect transfer taxation. 1 September 2014
1 September 2014 EY Tax Alert CBDT sets up a Committee to deal with retroactive indirect transfer taxation Executive summary Tax Alerts cover significant tax news, developments and changes in legislation
More informationEY Tax Alert. Executive summary
23 July EY Tax Alert Government issues Notifications to restrict benefit in respect of CVD exemption for certain goods under exemption notifications, to domestic manufacturers Executive summary Tax Alerts
More informationEY Tax Alert. Executive summary. Hyderabad Tribunal reaffirms the distinction between use of copyright right and copyrighted article.
1 December 2014 EY Tax Alert Hyderabad Tribunal reaffirms the distinction between use of copyright right and copyrighted article Executive summary Tax Alerts cover significant tax news, developments and
More informationEY Tax Alert. Executive summary. CBDT notifies guidelines for onshore management of offshore funds. 17 March 2016
17 March 2016 EY Tax Alert CBDT notifies guidelines for onshore management of offshore funds Executive summary Tax Alerts cover significant tax news, developments and changes in legislation that affect
More informationKarnataka High Court rules that implementation of customized software is a service and cannot be subject to VAT
14 September 2015 EY Tax Alert Karnataka High Court rules that implementation of customized software is a service and cannot be subject to VAT Executive summary Tax Alerts cover significant tax news, developments
More informationCBDT revises rules relating to furnishing information in respect of payments to nonresidents
12 August 2013 2013mber 2012 EY Tax Alert CBDT revises rules relating to furnishing information in respect of payments to nonresidents Executive summary Tax Alerts cover significant tax news, developments
More informationEY Tax Alert. Executive summary. CBDT notifies ITR Forms for Company/ Firms/ LLP/ Trusts and others. 05 August 2015 October 2014
05 August 2015 October 2014 EY Tax Alert CBDT notifies ITR Forms for Company/ Firms/ LLP/ Trusts and others Executive summary Tax Alerts cover significant tax news, developments and changes in legislation
More informationThis Tax Alert summarizes the key indirect tax proposals in the Maharashtra State Budget for the financial year
24 March 2017 EY Tax Alert Maharashtra State Budget 2017-18: Amendments in VAT, profession tax and entry tax Executive summary This Tax Alert summarizes the key indirect tax proposals in the Maharashtra
More informationEY Tax Alert. Executive summary. Supreme Court upholds initiation of prosecution for failure to file return. 3 February 2014
3 February 2014 EY Tax Alert Supreme Court upholds initiation of prosecution for failure to file return Executive summary Tax Alerts cover significant tax news, developments and changes in legislation
More informationEY Tax Alert. Executive summary
07 June 2016 EY Tax Alert Mumbai Tribunal rules contractually agreed fixed return on equity investment is akin to interest on fixed deposit taxable on year-on-year basis Executive summary Tax Alerts cover
More informationApplying Ind AS 115 Automotive: The new revenue recognition standard
Applying Ind AS 115 Automotive: The new revenue recognition standard 2 Applying Ind AS 115 Automotive: The new revenue recognition standard Contents Overview...1 Key considerations...3 Incentives...3 Long-term
More informationEY Tax Alert. Executive summary
18 February 2019 EY Tax Alert Calcutta HC upholds initiation of prosecution under Black Money Act for non-disclosure of foreign bank account pertaining to years prior to enactment of Black Money Act Tax
More informationReserve Bank of India releases draft guidelines for on tap licensing of Universal Banks in the private sector
11 May 2016 EY Regulatory Alert Reserve Bank of India releases draft guidelines for on tap licensing of Universal Banks in the private sector Executive summary In 2013, the Reserve Bank of India (RBI)
More informationEY 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 informationEY Tax Alert. Executive summary. Protocol signed on 10 May 2016 to amend the 1982 India- Mauritius tax treaty. 12 May 2016
12 May 2016 EY Tax Alert Protocol signed on 10 May 2016 to amend the 1982 India- Mauritius tax treaty Executive summary Tax Alerts cover significant tax news, developments and changes in legislation that
More information24 April EY Tax Alert. Mumbai Tribunal rules that itemized sale of assets with an intention to transfer entire undertaking is a slump sale
24 April 2012 EY Tax Alert Mumbai Tribunal rules that itemized sale of assets with an intention to transfer entire undertaking is a slump sale Executive summary This Tax Alert summarises a recent ruling
More informationHigh Court rules that in-transit sale in turnkey contracts not eligible for exemption under Section 6(2) of the Central Sales Tax Act
23 September 2015 EY Tax Alert High Court rules that in-transit sale in turnkey contracts not eligible for exemption under Section 6(2) of the Central Sales Tax Act Executive summary Tax Alerts cover significant
More informationEY Tax Alert. Executive summary. Supreme Court upholds disallowance of expenditure incurred in relation to exempt dividend income.
9 May 2017 EY Tax Alert Supreme Court upholds disallowance of expenditure incurred in relation to exempt dividend income Executive summary Tax Alerts cover significant tax news, developments and changes
More informationEY Tax Alert. Executive summary
20 April 2017 EY Tax Alert HC quashes levy of Service tax on services in relation to promotion or marketing of lottery in absence of machinery provisions Executive summary Tax Alerts cover significant
More informationEY Tax Alert. Executive summary
3 June 2014 EY Tax Alert CESTAT rules non-compete fee and trademarks licence fee shall be included while determining the assessable value of the goods, under Central Excise Executive summary Tax Alerts
More informationReserve Bank of India releases final guidelines for on tap licensing of Universal Banks in the private sector
5 August 2016 EY Regulatory Alert Reserve Bank of India releases final guidelines for on tap licensing of Universal Banks in the private sector Executive summary In 2013, the Reserve Bank of India (RBI)
More informationEY Tax Alert. CBEC issues clarifications on exports-related refund issues. Executive summary
19 March 2018 EY Tax Alert CBEC issues clarifications on exports-related refund issues Tax Alerts cover significant tax news, developments and changes in legislation that affect Indian businesses. They
More informationEY Tax Alert. Executive summary. Supreme Court rules on scope of statutory dues allowable as deduction on actual payment.
15 May 2015 EY Tax Alert Supreme Court rules on scope of statutory dues allowable as deduction on actual payment Executive summary Tax Alerts cover significant tax news, developments and changes in legislation
More information