Delhi ITAT sets aside AO’s
order applying tax rate @20% u/s 115A on FTS received by Ericsson Telephone
Corporation India (assessee, a Swedish company) during AY 2000-01 from its AEs
in India for installation and maintenance of mobile network systems, remits
matter back to AO to decide the issue afresh in light of the Protocol amending
India-Sweden DTAA; Notes that AO had arrived at the taxability by simply
following the AAR in assessee’s own case rendered in 1996 which was based on
un-amended DTAA however, takes note of Protocol amending India-Sweden DTAA
subsequently in 1997; Considering the revised DTAA, ITAT rules that AO should
examine assessee’s argument that in view of the Most Favored Nation (‘MFN’)
clause in the Protocol, a beneficial FTS article appearing in DTAA with a third
country (i.e. Finland) should be read into the DTAA with Sweden; Rejects
Revenue’s preliminary argument that Protocol will have no application as it can
be resorted only if there is some dispute on the terms of the DTAA, remarks
that, “A Protocol to the DTAA is …to be considered as its part and parcel. …If
a particular benefit is being conferred, expanded or reduced by the Protocol,
which is absent in the DTAA, then the provisions of the Protocol shall apply
pro tanto.”; Thus, holds that a Protocol cannot be viewed as a document
independent of the DTAA and has to be considered as its addendum.:ITAT
Subscribe to:
Post Comments (Atom)
Safe Harbour vs. Advance Pricing Agreements: Choosing the Right Path to Transfer Pricing Certainty
While Safe Harbour focuses on standardization, an Advance Pricing Agreement (APA) provides a customized solution. An APA is a binding agr...
-
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....
-
The Reserve Bank of India has introduced a new framework governing export and import transactions under FEMA. These regulations are effectiv...
-
THE issues before the Bench are - Whether no penalty u/s 271(1)(c) is warranted even if assessee makes false claim of Sec 80IA benefits ...
-
This Tax Alert summarizes a recent judgement of the Supreme Court (SC) [1] on whether a show cause notice (SCN) under Section 74 of the ...
-
What is a Digital Signature? Answer: A digital signature authenticates electronic documents in a similar manner a handwritten signatur...
-
This Tax Alert summarizes a recent ruling of the Gujarat High Court (HC)1 on the taxability of corporate guarantee provided by the Petitio...
-
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 Delhi High Court (HC) [1] on whether the newly introduced pre-deposit requirement for fi...
No comments:
Post a Comment