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Archive: 28 November 2010

Posts in 28 November 2010

Live Course on Appeal, Pleading & Drafting under GST by CA Sachin Jain

May 15, 2024 6447 Views 0 comment Print

oin us for an immersive live course led by renowned expert CA Sachin Jain, as we delve into the intricacies of appeal, pleading, and drafting under GST.

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

November 28, 2010 7339 Views 0 comment Print

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 were situated in India, the hire charges pertaining to that period are taxable in India.

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

November 28, 2010 2438 Views 0 comment Print

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.

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

November 28, 2010 336 Views 0 comment Print

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

Govt tightens PF norms for overseas workers in India

November 28, 2010 279 Views 0 comment Print

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

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

November 28, 2010 207 Views 0 comment Print

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

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

November 28, 2010 820 Views 0 comment Print

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).

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

November 28, 2010 943 Views 0 comment Print

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 held that payment received from sale of software copy does not amount to income from royalty under the tax treaty.

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

November 28, 2010 319 Views 0 comment Print

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).

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

November 28, 2010 1733 Views 0 comment Print

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 nature of anticipated losses and not a contingent loss. The Special Bench observed that a binding obligation (although not fully ascertainable) arose against the taxpayer the moment it entered into forward foreign exchange contract. The Special Bench has relied on the recent decision of the Supreme Court in the case of CIT v. Woodward Governor of India [2009] 312 ITR 254 (SC) wherein the Supreme Court had held that exchange fluctuation loss arising on mark- to-market restatement of liability which is revenue in nature is an allowable loss. The Special Bench further observed that where profits were being taxed by the tax department in respect of such unmatured foreign exchange contracts then there was no reason to disallow the loss on such contracts.

Rules 6(2) and 6(3) of Cenvat Credit Rules 2002 not applicable when assessee is engaged in ‘trading activity’ and providing ‘output services’- Cestat

November 28, 2010 1111 Views 0 comment Print

Since the inception of Cenvat Credit Rules, there has been a debate on the application of Cenvat Credit Rules viz a viz trading activity. The Cenvat Credit Rules do not have any provision to govern a situation where common ‘inputs’/‘input services’ are used by an assessee engaged in providing output service/ manufacturing dutiable goods and, at the same time, also undertaking ‘trading activity’.

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