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	<title>TaxGuru &#187; business connection</title>
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		<title>Taxability of Income of a non-resident shipping company can in India</title>
		<link>http://taxguru.in/income-tax-case-laws/taxability-of-income-of-a-non-resident-shipping-company-can-in-india.html</link>
		<comments>http://taxguru.in/income-tax-case-laws/taxability-of-income-of-a-non-resident-shipping-company-can-in-india.html#comments</comments>
		<pubDate>Sun, 20 Dec 2009 06:09:17 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Income Tax Case Laws]]></category>
		<category><![CDATA[bench]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[compass]]></category>
		<category><![CDATA[cruise operations]]></category>
		<category><![CDATA[cruise packages]]></category>
		<category><![CDATA[cruise tour]]></category>
		<category><![CDATA[foreign countries]]></category>
		<category><![CDATA[india travel]]></category>
		<category><![CDATA[indian territory]]></category>
		<category><![CDATA[international waters]]></category>
		<category><![CDATA[scml]]></category>
		<category><![CDATA[star cruises]]></category>
		<category><![CDATA[submissions]]></category>
		<category><![CDATA[travel services]]></category>

		<guid isPermaLink="false">http://www.taxguru.in/?p=17316</guid>
		<description><![CDATA[Merely because assessee is doing booking of different cruise tour packages for a foreign company, that cannot per se be decisive for holding that said foreign company is having "business connection" in India within the meaning of section9(1)( i)]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Analysis of Circular no. 7/2009 issued to withdraw earlier circular pertaining to non-resident taxation</title>
		<link>http://taxguru.in/income-tax/analysis-of-circular-no-72009-issued-to-withdraw-earlier-circular-pertaining-to-non-resident-taxation.html</link>
		<comments>http://taxguru.in/income-tax/analysis-of-circular-no-72009-issued-to-withdraw-earlier-circular-pertaining-to-non-resident-taxation.html#comments</comments>
		<pubDate>Thu, 10 Dec 2009 02:48:11 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Income Tax]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[CBDT]]></category>
		<category><![CDATA[direct taxes]]></category>
		<category><![CDATA[income tax act]]></category>
		<category><![CDATA[income tax act 1961]]></category>
		<category><![CDATA[india tax]]></category>
		<category><![CDATA[indian importer]]></category>
		<category><![CDATA[indian importers]]></category>
		<category><![CDATA[non residents]]></category>
		<category><![CDATA[principal basis]]></category>
		<category><![CDATA[resident agents]]></category>
		<category><![CDATA[tax liability]]></category>
		<category><![CDATA[tax payers]]></category>

		<guid isPermaLink="false">http://www.taxguru.in/?p=16814</guid>
		<description><![CDATA[The Central Board of Direct Taxes (CBDT) had earlier issued a circular (Circular No. 23 dated July 23, 1969) clarifying the India tax liability of non-residents in respect of income accruing or arising through or from, a business connection in India. As per the aforesaid Circular 23, even if a business connection existed under section 9 of the Income-tax Act, 1961 (“the Act”), only so much of the profit which can be reasonably attributed to the operations of the business carried out in India could be subject to tax in India. Circular 23 also provided clarifications on the taxability of non-residents in specific situations.]]></description>
		<wfw:commentRss>http://taxguru.in/income-tax/analysis-of-circular-no-72009-issued-to-withdraw-earlier-circular-pertaining-to-non-resident-taxation.html/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Procurement of orders by South African company for Indian company on commission basis is not taxable in India</title>
		<link>http://taxguru.in/income-tax-case-laws/procurement-of-orders-by-south-african-company-for-indian-company-on-commission-basis-is-not-taxable-in-india.html</link>
		<comments>http://taxguru.in/income-tax-case-laws/procurement-of-orders-by-south-african-company-for-indian-company-on-commission-basis-is-not-taxable-in-india.html#comments</comments>
		<pubDate>Sun, 06 Dec 2009 11:19:29 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Income Tax Case Laws]]></category>
		<category><![CDATA[advance rulings]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[business operations]]></category>
		<category><![CDATA[business profits]]></category>
		<category><![CDATA[commission basis]]></category>
		<category><![CDATA[procurement]]></category>
		<category><![CDATA[south africa]]></category>
		<category><![CDATA[south african company]]></category>
		<category><![CDATA[withholding tax liability]]></category>

		<guid isPermaLink="false">http://www.taxguru.in/?p=16525</guid>
		<description><![CDATA[S. 9, Treaty with South Africa; in favor of taxpayer: - Z, a South African company, offered to promote and market the products of the taxpayer, an Indian company, on commission basis. Z will procure and negotiate orders and forward these to the taxpayer. The taxpayer will execute the orders directly and will receive the consideration in India. Z will render all services outside India and will not maintain any PE in India.]]></description>
		<wfw:commentRss>http://taxguru.in/income-tax-case-laws/procurement-of-orders-by-south-african-company-for-indian-company-on-commission-basis-is-not-taxable-in-india.html/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Withdrawal of circular related to taxability of income accruing or arising through, or from, business connection in India to a non-resident</title>
		<link>http://taxguru.in/income-tax/withdrawal-of-circular-related-to-taxability-of-income-accruing-or-arising-through-or-from-business-connection-in-india-to-a-non-resident.html</link>
		<comments>http://taxguru.in/income-tax/withdrawal-of-circular-related-to-taxability-of-income-accruing-or-arising-through-or-from-business-connection-in-india-to-a-non-resident.html#comments</comments>
		<pubDate>Sun, 25 Oct 2009 04:54:36 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Income Tax]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[circulars]]></category>
		<category><![CDATA[clarification]]></category>
		<category><![CDATA[direct taxes]]></category>
		<category><![CDATA[income tax act]]></category>
		<category><![CDATA[income tax act 1961]]></category>
		<category><![CDATA[Income tax department]]></category>
		<category><![CDATA[india]]></category>
		<category><![CDATA[intention]]></category>
		<category><![CDATA[issuance]]></category>
		<category><![CDATA[petition]]></category>
		<category><![CDATA[petitions]]></category>
		<category><![CDATA[prejudice]]></category>
		<category><![CDATA[provisions]]></category>
		<category><![CDATA[section 9]]></category>
		<category><![CDATA[taxpayers]]></category>

		<guid isPermaLink="false">http://www.taxguru.in/?p=13780</guid>
		<description><![CDATA[The Central Board of Direct Taxes had issued Circular No. 23 (hereinafter called "the Circular") on 23rd July 1969 regarding taxability of income accruing or arising through, or from, business connection in India to a non-resident, under section 9 of the Income-tax Act, 1961. 2.   It is noticed that interpretation of the Circular by some of the taxpayers to claim relief is not in accordance with the provisions of section 9 of the Income-tax Act, 1961 or the intention behind the issuance of the Circular.]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Ishikawajima-Harima is still good law despite retrospective amendment: Karnataka High Court</title>
		<link>http://taxguru.in/income-tax-case-laws/ishikawajima-harima-is-still-good-law-despite-retrospective-amendment-karnataka-high-court.html</link>
		<comments>http://taxguru.in/income-tax-case-laws/ishikawajima-harima-is-still-good-law-despite-retrospective-amendment-karnataka-high-court.html#comments</comments>
		<pubDate>Sun, 30 Aug 2009 02:29:14 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Income Tax Case Laws]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[consequences]]></category>
		<category><![CDATA[finance act]]></category>
		<category><![CDATA[foreign subsidiaries]]></category>
		<category><![CDATA[ishikawajima harima]]></category>
		<category><![CDATA[onshore services]]></category>
		<category><![CDATA[place of business]]></category>
		<category><![CDATA[power plant]]></category>
		<category><![CDATA[raytheon]]></category>
		<category><![CDATA[tax liability]]></category>

		<guid isPermaLink="false">http://www.taxguru.in/?p=11822</guid>
		<description><![CDATA[Jindal Thermal Power vs. DCIT (Karnataka High Court) The assessee entered into a contract with Raytheon – Ebasco, a foreign company, and two of its’ foreign subsidiaries, for commissioning of a power plant. The assessee made payments to Raytheon for rendering technical services, providing ‘start-up’ services and taking ‘overall responsibility’ for the Project. The two [...]]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Sale of equipment to an Indian party by a foreign company cannot be construed as resulting into any business connection in India</title>
		<link>http://taxguru.in/income-tax-case-laws/sale-of-equipment-to-an-indian-party-by-a-foreign-company-cannot-be-construed-as-resulting-into-any-business-connection-in-india.html</link>
		<comments>http://taxguru.in/income-tax-case-laws/sale-of-equipment-to-an-indian-party-by-a-foreign-company-cannot-be-construed-as-resulting-into-any-business-connection-in-india.html#comments</comments>
		<pubDate>Mon, 24 Aug 2009 15:27:17 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Income Tax Case Laws]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[Letter of Credit]]></category>
		<category><![CDATA[offshore equipment]]></category>
		<category><![CDATA[offshore supplies]]></category>
		<category><![CDATA[offshore supply]]></category>
		<category><![CDATA[taxation]]></category>
		<category><![CDATA[xelo]]></category>

		<guid isPermaLink="false">http://www.taxguru.in/?p=10222</guid>
		<description><![CDATA[SUMMARY OF CASE LAW The mere fact that the assessee effected sale of equipment to an Indian party, that in itself, cannot be construed as resulting into any business connection in India; even if there is a business connection of the non-resident in India, then also only that part of the income shall be deemed [...]]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Taxability of commission paid by Indian Company to foreign company to promote its business in that country</title>
		<link>http://taxguru.in/income-tax/taxability-of-commission-paid-by-indian-company-to-foreign-company-to-promote-its-business-in-that-country.html</link>
		<comments>http://taxguru.in/income-tax/taxability-of-commission-paid-by-indian-company-to-foreign-company-to-promote-its-business-in-that-country.html#comments</comments>
		<pubDate>Thu, 06 Aug 2009 18:52:34 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Income Tax]]></category>
		<category><![CDATA[AAR]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[direct taxes]]></category>
		<category><![CDATA[foreign agent]]></category>
		<category><![CDATA[foreign commission]]></category>
		<category><![CDATA[independent authority]]></category>
		<category><![CDATA[indian company]]></category>
		<category><![CDATA[resident agent]]></category>
		<category><![CDATA[south african company]]></category>
		<category><![CDATA[south african market]]></category>
		<category><![CDATA[taxation]]></category>

		<guid isPermaLink="false">http://www.taxguru.in/?p=11029</guid>
		<description><![CDATA[The Authority for Advanced Ruling has ruled that if an Indian company pays a commission to an overseas company to promote its business in that country, such payment will not be taxable in India. The AAR, a quasi judicial body on matters of taxation, in a ruling on July 29, also held that the expenditure incurred by [...]]]></description>
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		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Rectification of order passed by tribunal under section 254(2) of IT Act, 1961</title>
		<link>http://taxguru.in/income-tax-case-laws/rectification-of-order-passed-by-tribunal-under-section-2542-of-it-act-1961.html</link>
		<comments>http://taxguru.in/income-tax-case-laws/rectification-of-order-passed-by-tribunal-under-section-2542-of-it-act-1961.html#comments</comments>
		<pubDate>Sat, 18 Jul 2009 01:53:00 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Income Tax Case Laws]]></category>
		<category><![CDATA[bench]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[case law]]></category>
		<category><![CDATA[mistake]]></category>
		<category><![CDATA[rectification]]></category>
		<category><![CDATA[rectification of mistakes]]></category>
		<category><![CDATA[tribunal]]></category>
		<category><![CDATA[under section 254(2)]]></category>

		<guid isPermaLink="false">http://www.taxguru.in/?p=9754</guid>
		<description><![CDATA[SUMMARY OF CASE LAW If the Tribunal has consciously come to the conclusion that no income accrues in India and in respect of which elaborate reasons are given, if the applicant does not agree with the reasoning, it cannot be said that any mistake has crept in the order of the Tribunal which is rectifiable [...]]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Taxability of Software Payments</title>
		<link>http://taxguru.in/service-tax/taxability-of-software-payments.html</link>
		<comments>http://taxguru.in/service-tax/taxability-of-software-payments.html#comments</comments>
		<pubDate>Wed, 07 May 2008 05:52:00 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Service Tax]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[business income]]></category>
		<category><![CDATA[Case Laws]]></category>
		<category><![CDATA[CBDT]]></category>
		<category><![CDATA[estic]]></category>
		<category><![CDATA[income tax act]]></category>
		<category><![CDATA[lump sum payment]]></category>
		<category><![CDATA[other proprietary rights]]></category>
		<category><![CDATA[prescribed rate]]></category>
		<category><![CDATA[relevant case]]></category>
		<category><![CDATA[software transactions]]></category>
		<category><![CDATA[Taxability of Software Payments]]></category>

		<guid isPermaLink="false">http://kanoisandeep.wordpress.com/2008/05/07/taxability-of-software-payments-a-good-article-by-praveen-boda/</guid>
		<description><![CDATA[The tax treatment of cross border software transactions has always been a matter of controversy. One of the major issues has been whether payments for software, where the seller retains all copyright, trademark and other proprietary rights in the software, should be characterized as royalty or as business income. This article addresses the said issue in the light of the definition of 'royalty' as per domestic law and as per DTAA (India - USA) and by making reference to some relevant case-laws. The author makes a pointer to the fact that though a Special Task Force was set up to examine the issues of taxation of software, no clarification has been issued by the CBDT so far. He, therefore, opines that it is high time that the CBDT/Finance Act should come up with a clarification/ amendment so as to address the confusion and litigation which is prevailing on the taxability of software payments.]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>The Amadeus system, by which subscribers in India are enabled to perform the functions of reservation and ticketing, represents a &#8220;business connection&#8221;</title>
		<link>http://taxguru.in/income-tax-case-laws/the-amadeus-system-by-which-subscribers-in-india-are-enabled-to-perform-the-functions-of-reservation-and-ticketing-represents-a-business-connection.html</link>
		<comments>http://taxguru.in/income-tax-case-laws/the-amadeus-system-by-which-subscribers-in-india-are-enabled-to-perform-the-functions-of-reservation-and-ticketing-represents-a-business-connection.html#comments</comments>
		<pubDate>Mon, 28 Jan 2008 08:44:00 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Income Tax Case Laws]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[circulars]]></category>
		<category><![CDATA[DTAA]]></category>
		<category><![CDATA[singapore pte]]></category>
		<category><![CDATA[subscribers]]></category>

		<guid isPermaLink="false">http://kanoisandeep.wordpress.com/2008/01/28/business-connection/</guid>
		<description><![CDATA[Amadeus Global Travel vs. DCIT (ITAT Delhi) (i) The Amadeus system, by which subscribers in India are enabled to perform the functions of reservation and ticketing, represents a business connection because it extends to the Indian territory in the form of connectivity in India and generates income in India when the booking is completed on the subscribers' computer; (ii) In determining the extent of profits attributable to such business connection, one has to look into the factors like functions performed, assets used and risk undertaken. On facts, as the major part of the work was processed at the host computer in Germany, only 15% of the revenue accruing to the assessee in respect of bookings made in India can be said to have accrued or arisen in India;]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Only if income is arising directly or indirectly through or from any business connection in India , it can be taxed</title>
		<link>http://taxguru.in/income-tax/only-if-income-is-arising-directly-or-indirectly-through-or-from-any-business-connection-in-india-it-can-be-taxed.html</link>
		<comments>http://taxguru.in/income-tax/only-if-income-is-arising-directly-or-indirectly-through-or-from-any-business-connection-in-india-it-can-be-taxed.html#comments</comments>
		<pubDate>Fri, 11 Jan 2008 05:38:00 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Income Tax]]></category>
		<category><![CDATA[Assessment]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[business model]]></category>
		<category><![CDATA[circulars]]></category>
		<category><![CDATA[itat]]></category>
		<category><![CDATA[travel agent]]></category>
		<category><![CDATA[travel industry]]></category>
		<category><![CDATA[tribunal]]></category>

		<guid isPermaLink="false">http://kanoisandeep.wordpress.com/2008/01/11/only-if-income-is-arising-directly-or-indirectly-through-or-from-any-business-connection-in-india-it-can-be-taxed/</guid>
		<description><![CDATA[The appellant exercises computer control over the computes installed at the premises of the subscribers.  This amounts to a fixed place of business for carrying on the business of the enterprise in India . But for the supply of computers, the configuration of computes and connectivity which are provided by the appellant either directly or through its agent AIPL will amount to operating part if its CRS system through such subscribers in India and accordingly PE in the nature of a fixed place of business in India. Thus the appellant can be said to have established a PE within the meaning of paragraph 1 of Article 5 of Indo-Spain Treaty.]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Jurisdiction u/s 147 can be exercised even on the basis of a prima facie opinion</title>
		<link>http://taxguru.in/income-tax-case-laws/jurisdiction-us-147-can-be-exercised-even-on-the-basis-of-a-prima-facie-opinion.html</link>
		<comments>http://taxguru.in/income-tax-case-laws/jurisdiction-us-147-can-be-exercised-even-on-the-basis-of-a-prima-facie-opinion.html#comments</comments>
		<pubDate>Thu, 20 Dec 2007 12:51:00 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Income Tax Case Laws]]></category>
		<category><![CDATA[APPEAL]]></category>
		<category><![CDATA[Assessment]]></category>
		<category><![CDATA[assets]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[circulars]]></category>
		<category><![CDATA[CIT]]></category>
		<category><![CDATA[Computer]]></category>
		<category><![CDATA[Deduction]]></category>
		<category><![CDATA[developer]]></category>
		<category><![CDATA[establishments]]></category>
		<category><![CDATA[factual analysis]]></category>
		<category><![CDATA[itat]]></category>
		<category><![CDATA[Others]]></category>
		<category><![CDATA[permanent establishment]]></category>
		<category><![CDATA[remuneration]]></category>
		<category><![CDATA[rolls royce]]></category>

		<guid isPermaLink="false">http://kanoisandeep.wordpress.com/2007/12/20/recent-judgements/</guid>
		<description><![CDATA[Rolls Royce Plc vs. DDIT (ITAT Delhi) - jurisdiction u/s 147 can be exercised even on the basis of a prima facie opinion (ii) On facts, the wholly owned subsidiary constituted a 'business connection' as well as a 'permanent establishment' (iii) the total profits of the enterprise have to be apportioned on the basis of various factors affecting accrual of income. First, the economically significant activities and responsibilities (in the context of activities and responsibilities undertaken by the enterprise as a whole) undertaken through the PE have to be identified through a functional and factual analysis. ]]></description>
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		</item>
		<item>
		<title>Capital gains of non-residents from Indian assets</title>
		<link>http://taxguru.in/income-tax/capital-gains-of-non-residents-from-indian-assets.html</link>
		<comments>http://taxguru.in/income-tax/capital-gains-of-non-residents-from-indian-assets.html#comments</comments>
		<pubDate>Thu, 20 Dec 2007 12:14:00 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Income Tax]]></category>
		<category><![CDATA[business connection]]></category>
		<category><![CDATA[capital asset]]></category>
		<category><![CDATA[income tax act 1961]]></category>
		<category><![CDATA[indian citizens]]></category>
		<category><![CDATA[Others]]></category>
		<category><![CDATA[share transfer]]></category>

		<guid isPermaLink="false">http://kanoisandeep.wordpress.com/2007/12/20/capital-gains-of-non-residents-from-indian-assets/</guid>
		<description><![CDATA[The Income-Tax Act extends to the whole of India, that is, the territory of India mentioned in the Constitution and the territorial waters, continental shelf, etc (Section 2(25A) of the Income-Tax Act, 1961). If two persons who are residing outside India and are not Indian citizens, enter into transactions covering property in India, will they be affected by the provisions of our tax law? This is not an academic issue. The matter came up before the Authority for Advance Ruling (AAR) last month.]]></description>
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		<slash:comments>0</slash:comments>
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