Mumbai ITAT holds that
consideration of Rs.112.83 lakhs received by assessee (a UAE
based Booz group company) for providing technical/professional
personnel to its Indian associated enterprise (i.e. Booz India)
during AY 2011-12, not taxable as business income under Article 7 of India-UAE
DTAA absent assessee’s PE in India; Rejects Revenue’s reliance on AAR
ruling which had held in case of other Booz group companies that they had PE in
India & income received by them from Indian companies was taxable as
business profit under Article 7; ITAT accepts assessee’s stand that without
examining the facts available in the present case, “the ruling given by
AAR in the group concern’s case should not have been taken by the tax
authorities as the basis for determining the existence or otherwise of PE of the
assessee herein”; Notes that the fees received by assessee for
provision of technical/professional personnel were in the nature of business
receipts; However, observes that there was no service PE constituted
since assessee’s employees worked for 156 solar days (i.e. lesser than 9 months
threshold), also notes that there was no fixed place PE as Booz India did
not earmark any specific place under the control or disposal of the assessee,
further rejects constitution of dependent agency PE :ITAT
Subscribe to:
Post Comments (Atom)
The Arbitrator’s Ledger: Financial Forensics in ODR
Let’s start with a small story in this regard. Client B, a mid-sized electrical components manufacturer registered as an MSME, supplied ma...
-
A new website launched for TDS related matters www.tdscpc.gov.in TRACES – T DS R econciliation A nalysis and C orrection E nabling S yste...
-
THE issues before the Bench are - Whether when an expenditure is claimed to have been incurred by an assessee for promotion of his busine...
-
The posting had been move to another website. Please click the link below to get the access of the same. https://taxofindia.wordpress....
-
"whether tds should be deducted u/s 194C for payment made to travel agent for booking of airline tickets by a company for its employee...
-
Any tax, interest, penalty, fine or any other sum payable by virtue of an order passed under the Income Tax Act as specified in the ...
-
This Tax Alert summarizes a recent ruling of the Karnataka High Court (HC) [1] on the constitutional validity of Health Security se Natio...
-
This Tax Alert summarizes a recent ruling of the Delhi High Court (HC) [1] on whether the newly introduced pre-deposit requirement for fi...
-
The India-Mauritius DTAA, which entered into force on 1 April 1983, was amended by way of Protocol signed on 10 May 2016 [1] (2016 Protoc...
-
The overall effective tax rate of a U.S. multinational corporation may have significant impact on the value of its stock. Therefore, it ...
-
This Tax Alert summarizes a recent ruling of the Gujarat High Court (HC)1 on the taxability of corporate guarantee provided by the Petitio...
No comments:
Post a Comment