The ITAT held that the relationship of the Taxpayers with their Indian subsidiary to whom the Taxpayers had sub contracted/ assigned provision of software development and call center services, resulted in a permanent establishment (PE) of the Taxpayers in India under the India-USA Double Taxation Avoidance Agreement (DTAA). The ITAT held that a PE was constituted on account of activities of the subsidiary which effectively resulted in the Taxpayers carrying on their business in India. The ITAT, subject to some adjustments, broadly upheld the approach adopted by the Indian Tax Authority of attributing profits to the PE by allocating the global profits based on a proportion of Indian assets to global assets. The ITAT also held that the conclusions reached in a Mutual Agreement Procedure (MAP) for a particular financial year could form the basis for the Tax Authority to reach a conclusion for other years, if there are no differences in facts for the years.
The ITAT held that the taxes paid on profits, whether on presumptive basis or on the basis of actual profits earned, represent application of income and are not allowed as deduction in computation of taxable profits. In terms of applicable provisions of the Indian Tax Laws (ITL), read with the applicable tax treaty, such taxes qualify for tax credit relief so as to avoid double taxation.
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 96/2008-Customs, dated the 13th August, 2008 which was pu
G.S.R. (E). – Whereas in the matter of imports of Phenol [hereinafter referred to as the subject goods], falling under sub heading 2907 11 10 or 2707 99 00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, Thailand and Japan (hereinafter referred as the subject countries) and imported into India, the designated authority in its preliminary findings vide notification No.14/27/2009-DGAD, dated the 3rd February, 2010, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 3rd February
In exercise of the powers conferred by Section 45JA of the Reserve Bank of India Act, 1934 and of all the powers enabling it in this behalf, and in partial modification of its Non-Banking Financial (Non-Deposit Accepting) Companies Prudential Norms Directions, 2007 issued vide Notification No. DNBS. 193 dated DG (VL)-2007 dated February 22, 2007, the Reserve Bank hereby notifies as follows, namely.
Himachal Pradesh Chief Minister Prem Kumar Dhumal today launched new web portal of Excise and Taxation department for e-payment of VAT at his Office Chamber here today by accepting payment of Rs. 99,999 from Sanjay Guleria, Director, Symbiotic Drugs
The Central Board of Excise & Customs (CBEC) has released a draft scheme of Authorized Economic Operator (AEO) based on the World Customs Organisation’s (WCO) SAFE Framework of Standards to secure and facilitate global trade. The SAFE Framework of St
The Income Tax Department today conducted nation-wide searches at more than 30 premises of steel maker Ispat Industries in connection with alleged tax evasion. The searches were conducted at Mumbai, Nagpur, Delhi, Kolkata and 25 other places of the
Finance minister Pranab Mukherjee is unlikely to go for any major changes in direct taxes when he presents the Budget in February. According to indications, he will restrict himself to minor tweaking in the policy on income and corporation tax, and
The recent housing loan scam would increase developers’ dependence on private money-lenders. While cash flow from various quarters like private equities and investors has already become scarcer, the scam is expected to adversely impact credit flow to
