"28 November 2010" Archive

Payment of hire charges on bareboat charter basis is not taxable if the agreement for hire was executed outside India and vessel was delivered / situa

Seabird Exploration FZ, LLC, UAE (AAR) [2010-TII-27-ARA-INTL]

The AAR held that the ‘source of income’ for hire charges of a vessel is to be determined having regard to the place where the agreement for hire was executed and the place where the vessel was delivered/situated at the time of entering into the agreement. In the present case, since at the time of renewal of the agreements the vessels...

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Pendency, before a statutory forum, of a similar matter in respect to transaction with a different party is no bar to seek advance ruling

Re. LS Cable Ltd. (AAR)

Recently, the Authority for Advanced Ruling held that pendency of a similar matter of the applicant in respect to transaction with a different party, before a statutory forum, is no bar to seek advance ruling in respect of another transaction....

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Construction PE clause determines Existence of PE in case of engineering, procurement, commissioning services provider in oil fields Construction

DDIT Vs. Clough Projects International Pvt. Ltd. (ITAT Mumbai)

The Tribunal while upholding the order of the CIT(A) and after relying on the decision of the AAR in the case of Brown and Root Inc. held that since an installation project was not carried on for more than six months, as per Article 5(2)(k) of the tax treaty the taxpayer did not create PE in India....

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I-T dept introduces new number for taxpayers for tax filing

Taxpayers will now have to procure a 'new number' for filing returns and making any communication with the Income Tax department. The unique Document identification number (DIN), on the lines of numbers like PAN and TAN, will be quoted on "every" inc...

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Posted Under: Income Tax |

Govt tightens PF norms for overseas workers in India

India has tightened norms for withdrawal of provident fund by overseas workers employed in the country, prohibiting them from taking back this money until they are 58 years old or are incapacitated. "An international worker may withdraw the full amo...

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Posted Under: Income Tax |

LIC's new premium crosses Rs 50,000 crore during Apr-Oct

The new premiums of country's largest insurer Life Insurance Corporation (LIC) has breached the Rs 50,000-crore mark during April-October period this year, an increase of 66 per cent from the corresponding period last fiscal. In the first seven month...

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Posted Under: Income Tax |

Consideration for strategic consulting services cannot be considered as Fees for Technical Services or Royalty prior to amendment to India-Switzerland

Recently, the Mumbai Tribunal held that the consideration received by the taxpayer for providing strategic consulting services cannot be considered as Fees for Technical Services (FTS) or Royalty within the provisions of the India-Switzerland tax treaty (See Note 1 at the bottom)....

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Posted Under: Income Tax |

Supply of software is not transfer of copyright but only transfer of copyrighted article and such payment is not Royalty under India-Israel tax treaty

DDIT Vs. TII Team Telecom International Ltd. (ITAT Mumbai)

Mumbai bench of the Income-tax Appellate Tribunal held that the supply of software does not amount to any transfer of copyright but only transfer of copyrighted article. Further, payment received for sale of copyrighted article does not amount to income from royalty within the meaning of the India-Israel tax treaty. Further, the Tribunal ...

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Payment received for sale of copyright article does not amount to royalty under the India – USA tax treaty

The Dy Director of Income Tax Vs Alcatel USA International Mktg Inc. (ITAT Mumbai)

Recently, the Mumbai bench of the Income-tax Appellate Tribunal held that the payment received by the taxpayer company towards the sale of copyright article does not amount to royalty within the provisions of Article 12(3) of the India-USA tax treaty (tax treaty)....

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Losses on un-matured forward contracts cannot be considered as notional or contingent

Bharat Earth Movers Vs Commissioner Of Income Tax (Supreme Court of India)

In this case Special Bench of the Income-tax Appellate Tribunal dealt with the issue of allowability of losses on account of unmatured forward contracts in foreign exchange entered into by the taxpayer. The Special Bench while dismissing the contentions of the tax department held that the loss on unmatured forward contracts is in the n...

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