Recently, the Bangalore bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Robert Bosch GmbH v. ACIT [2010-TII-149-ITAT-BANG-INTL] (the taxpayer) while rejecting the contention of the tax department held that the taxpayer is not expected to make royalty income with reference to the sale effected to it by an Indian company, when the know how for manufacture of the same is supplied by the taxpayer itself. Accordingly, such notional royalty income was not taxable within the provisions of Section 5(2) and Section 9(1)(iv) of the Income-tax Act, 1961 (the Act) read with India-Germany tax treaty (the tax treaty).
The Bangalore tribunal has confirmed the inclusion of imputing interest on inter-company receivables as part of the transfer pricing assessment scrutiny and held that the arm’s length principle is equally applicable to interest on receivables under the India transfer pricing regulations.
Recently, the Mumbai bench of the Income-tax Appellate Tribunal (the Tribunal) in the held that mere provision of a dredger on dry lease for carrying out dredging activity in India does not result in the taxpayer having a Permanent Establishment (PE) as per the India-Netherlands tax treaty (tax treaty). Further, the Tribunal relied on OECD commentary which states that to form a PE, there should be existence of fixed place of business i.e. it must be establish a distinct place with certain degree of permanence. It usually means that persons who in one way or another are dependent on the enterprise, conduct the business of the enterprise in the state in which the place is situated.
Mumbai bench of the Income-tax Appellate Tribunal held that the income from supply of information relating to various markets should be taxed as business profits under Article 7(3) of the India-Singapore tax treaty (tax treaty) and accordingly the expenses incurred for earning the income should be allowed as a deduction. Further, the Tribunal upheld the view that when the taxpayer chooses to be covered by provisions of an applicable tax treaty, the tax department cannot thrust provisions of the Income-tax Act, 1961 (‘the Act’) on the taxpayer unless those are more beneficial to the taxpayer.
At least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode before shifting the trading in the securities of the company from TFTS to normal Rolling Settlement. For this purpose, the listed companies shall obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange/s.
Cheques with overwriting or cutting will not be honoured by the banks in the capital from today, a move intended to prevent fraudulent withdrawal of money and expedite clearance of cheques. The RBI in its directive to banks in June had asked banks no
The inquiry reports of National Stocks Exchange in the alleged defaults by a brokerage firm should be made public, the Central Information Commission has told the Securities and Exchange Board of India (SEBI). The transparency panel rejected the argu
Vivek Kulkarni, who resigned from the Board of the Bombay Stock Exchange (BSE) about a month-and-a-half ago, cited a lack of corporate governance at the bourse as his reason for doing so. “I resigned from the board following differences of opinion.
The cash-starved real estate sector could well find the going tougher. Smarting under the allegations of bribery against some its executives for granting loans to realty firms, banks are contemplating whether to bar roll-over of the loans of these fi
It is alleged that some advocates damaged window-panes, Name-plate of the Judicial Magistrate-II Lucknow, notice-board and destroyed the cause-list. About 5-6 Advocates further indulged in violence, ransacked the chamber of Judicial Magistrate-II Luc
