"05 February 2012" Archive

Payment for shrink wrapped software/ off-the-shelf software amounts to ‘royalty’

Commissioner of Income Tax Vs. Synopsis International Old Ltd. (Karnataka High Court)

CIT v. Synopsys International Old Ltd(Karnataka High Court) - Payment for shrink wrapped software/off-the­ shelf software amounts to 'royalty' within the meaning of Section 9(1)(vi) of the Income-tax Act, 1961 as well as under Article 12 of the India-Ireland tax treaty....

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Taxability of Income from Leasing of Hotel with amenities & maintenance services

M/s. Kenton Leisure Services, P. Ltd. Vs. DCIT (ITAT Cochin)

M/s. Kenton Leisure Services, P. Ltd. Vs. DCIT (ITAT Cochin) - It was held that lease rental income arising from agreements for letting on lease hostel premises along with provision and maintenance of various facilities and amenities would be taxable under the head 'Income from Business' as against 'Income from House Property'.The chara...

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Receipt of retention money by furnishing bank guarantee not chargeable to tax as it accrues only on a successful completion of a contract

ADIT Vs. Ballast Nadam Dredging (ITAT Mumbai)

ADIT Vs. Ballast Nadam Dredging (ITAT Mumbai)- It was held that retention money withheld by the contractee pending completion of contract work does not accrue to the assessee/contractor in the year in which the amount is retained. We also observe that similar issue was also considered by ITAT in the case of Spirax Marshall Ltd (supra) wh...

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Consideration for transfer of limited right to use the know-how taxed as royalty income

Atlas Copco AB of Sweden Vs. CIT (Bombay High Court)

Atlas Copco AB of Sweden v. CIT (Bombay High Court) - It was held that Amount received by the taxpayer was on account of right to use the know-how for a specified period and there was no outright transfer of know-how. Therefore, amount received was royalty and taxable in India....

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Business support services of advisory nature under a cost contribution agreement are consultancy services liable to tax withholding

Re. Shell Technology India Private Limited (AAR Delhi)

In Re Shell Technology India Private Limited (AAR)- It cannot be denied that the Applicant receives services in the form of general finance advice, Taxation advice, legal advice, advice on Information Technology, media advice, assistance in contract and procurement and assistance in Marketing. It is trite that these advisory services woul...

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Income-tax Authorities have no jurisdiction to tax payment made outside for supplies taking place outside the country

Re. SEPCO III Electric Power Construction (AAR Delhi)

In Re SEPCO III Electric Power Construction (AAR)- The applicant is a company incorporated under the laws of China on 26.3.2009. The applicant, among other things, is a supplier of equipments for Electric Power Projects. On 26.3.2009, the applicant entered into a contract with M/s Jhajjar Power Limited, for supplying of equipments for the...

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Business income accruing or arising to the applicant can be taxed in India only in respect of such operations carried out in India – AAR

Re. CTCI Overseas Corporation Ltd. (AAR Delhi)

CTCI Overseas Corporation Ltd. In Re (AAR)- In the present case, though the applicant has a business connection in India, it has not carried out any part of the business relating to offshore supplies in India. Under the deeming provision of section 9(1) read with Explanation 1(a), any business income accruing or arising to the applicant ...

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Mandatory death penalty unconstitutional – Supreme Court

State of Punjab Vs Dalbir Singh (Supreme Court of India)

The Supreme Court has ruled that mandatory death penalty for an offender under the Arms Act was unconstitutional as it violated fundamental rights guaranteed to a citizen.A bench of Justices Asok Kumar Ganguly (since retd) and J S Khehar said Section 27(3) of the Arms Act, which imposed mandatory death penalty, was also "ultra vires and v...

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International Taxation – Witholding Tax Rates and provisions

195. [(1)Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or any other sum chargeable under the provisions of this Act (not being income chargeable under the head “Salaries” shall, at the time of credit of such income to the account of the payee or at the time of payment...

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Posted Under: Income Tax | ,

Merely because appellant did not make debit of the CENVAT Credit and did not make proper entries in the ST-3 return, confirmation of service tax demand not justifiable

M/s Ad Vision Vs CST (CESTAT Ahemdabad)

In this case, the Service Tax demand has been confirmed on the ground that the service tax payable has not been debited in the CENVAT Credit account and it has not been reflected in the ST 3 return. In view of the fact that even in the cases of clandestine removal in Central Excise matters, while confirming the demand, the benefit of CENV...

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