AAR Delhi

AAR’s rejects Applications of Mauritius Entities for selling Flipkart shares

Re Tiger Global International II Holdings, Mauritius & Ors (Authority for Advance Rulings New Delhi)

Re. Tiger Global International II Holdings, Mauritius & Ors (Authority for Advance Rulings New Delhi) Facts: ♠ Tiger Global International (II, III, IV) were the applicants, the Mauritius based companies which holds several shares in the Flipkart Private Limited, the Singapore based Company, the company which derive its substantial v...

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Hotel accommodation services provided outside India attracts GST

In re M/s TUI India Private Limited (GST AAR Delhi)

In re M/s TUI India Private Limited (GST AAR Delhi) The applicant is supplying booking of hotel accommodation services. They are admittedly paying GST @ 18% (9% CGST + 9% SGST) on service fee / convenience fee commission received from clients and also on target based sales commission received from the foreign hotel aggregators (DOTW). [&h...

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GST payable on amount received by society from Company for CSR programmes

In re M/s Indian Institute of Corporate Affairs (GST AAR Delhi)

In re M/s Indian Institute of Corporate Affairs (GST AAR Delhi) Q1. Whether Goods and Services Tax shall be leviable / chargeable on the transaction / agreement as per provisions of Central Goods and Service Tax Act, 2017. . The amount received by the applicant from AICL is not in the nature of grant-in aid […]...

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Revisiting Classic Decisions-#1- Global payment solution provider MasterCard has a PE in India: AAR

In re MasterCard Asia Pacific Pte. Ltd. (GST AAR Delhi)

To create a PE, one has to pass the three tests of: permanency, a fixed place and disposal. All the three tests are satisfied and hence MIPs act as PE of the applicant. We hold that significant activities relating to clearance and settlement take place in India. Detailed analysis of Galileo judgement and application of the rationale hel...

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GST payable on sale of commercial space by & on behalf of MoHUA

In re NBCC (India) Limited (AAR Delhi)

Whether the applicant is liable to pay GST on sale of commercial super built up area on behalf of Ministry of Housing and Urban Affairs, Govt. of India, in the colonies being re-developed at Nauroji Nagar etc. in Delhi...

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Payments from Indian Hotel Owner for Global Reservation Services is Business Income: AAR

In re FRS Hotel Group(Lux) S.a.r.l. (AAR Delhi)

The payments received by the Applicant from the Indian hotel owner for provision of global reservation services ('GRS') would be chargeable to tax in India under section 9(1)(i) read with Articles 5 and 7 of the India-Luxembourg DTAA as business income and is attributable to the Applicant's permanent establishment in India....

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Cleaning services supplied to Railways are not exempt from GST: AAR Delhi

In re VPSSR Facilities (GST AAR Delhi)

It is held that the cleaning services supplied by the applicant to the Northern Railways are not exempted under S. No. 3 of the Notification No. 09/2017 — Integrated Tax (Rate) dated 28.06.2017, as amended by Notification No. 2/2018 — Integrated Tax (Rate) dated 25.01.2018 and parallel Notifications of CGST and SGST....

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AAR on Determination of PE and other connected issues in Master Card Case

In re MasterCard Asia Pacific Pte Ltd (Authority for Advance Rulings)

AAR has held that digital and other connected equipments can, depending on the business model, determine the formation of a permanent establishment of a non-resident enterprise in India. There are also other related issues which will have ramifications on the methodology of conducting business in India. ...

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In absence of PE Non-Competent Fee received by UK Company from Indian Company not Taxable in India: AAR

Mr. Kanchun Kaushal Vs Ms. Kavita Pandey (Authority for Advance Rulings)

Mr. Kanchun Kaushal Vs Ms. Kavita Pandey (AAR Delhi) Non-compete fees received by the Applicant from ADI BPO Services Private Ltd., an Indian Company, as a part of the consideration for transfer of the shares held in MPS Ltd. an Indian Company, though income from “Profits and gains of business or profession” as provided under [&hellip...

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GST on Dried Tobacco Leaves sold after cleaning & removal of unwanted particles

In re Shri Shalesh Kumar Singh (Authority For Advance Ruling)

The applicant is interested in trading of Dried Tobacco Leaves which would be purchased from registered dealer who in return purchases such Tobacco Leaves from Agriculturist / Farmers. Such registered dealer after purchasing it from Agriculturist / Farmers will sell the same to Applicant as it is without any further change in its form....

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AAR Ruling on classification of ‘Sulekh Sarita’ books for GST

In re M/s Sonka Publications (India) Private Limited (AAR Maharashtra)

The main problem faced by the children in Hindi subject is the error of MATRAS. This book teaches MATRAS with the concept of with comparison of words and picture presentation. The concept helps the child to learn Hindi MATRAS in the easy way, thus making the Hindi subject easier for the child....

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GST Leviable on ‘Duty Free’ shops at Delhi International Airport: AAR

In re M/s Rod Retail Private Limited (GST AAR Delhi)

The applicant is in the business of retail sale of sunglasses. The applicant was registered under the Delhi Value Added Tax Act, 2004 and the Central Sales Tax Act, 1956 and now the applicant has migrated to GST regime and its present provisional GST Number is 07AADCR6468R1ZF....

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GST: Supply of Food & Beverages in Trains is supply of Goods: Delhi AAR

In re R. K. Gupta, Partner M/s Deepak & Co. (AAR Delhi)

In re R. K. Gupta, Partner M/s Deepak & Co. (AAR Delhi) In the case of supply of food and beverages (cooked/ MRP/ packed), at defined menu and tariff, by the applicant to IRCTC/ passengers on behalf of IRCTC, on board the Rajdhani/ Duronto Express trains, the service charges are covered under Service Code (Tariff) […]...

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AAR Ruling on GST on sale of undivided and impartible share of land

In re Shri Sanjeev Sharma (AAR Delhi)

In re Shri Sanjeev Sharma (AAR Delhi) In the case of supply of services by way of construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, [&hellip...

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Duty Free Shops supplies not Exports under GST- Delhi AAR ruling

Re M/s. Rod Retail Private Limited (Aar Delhi)

Though section 105 of CGST Act states that every proceeding before Authority for Advance Ruling (AAR) shall be judicial proceedings, however, Rule 103 of CGST rules states that both the member judges of this authority shall be officers not below the rank of joint commissioners. Departmental officers are members of this so called ‘judici...

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Compensation or damages for fraud taxable as income from other sources

In re IC (AAR Delhi)

Between January and April, 2009 a number of suits were filed against IC and A and B in various jurisdictions in the United States claiming damages. The suits were based on tort, misrepresentation, deceit, fraud and so on. In terms of the procedural laws of the United States, the suits were directed to be consolidated. The suits were conso...

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Business Support Services / financial services not in the nature of technical services within the meaning of Article 12.5(b) of the DTA between India and the Netherlands

In Re. Shell Technology India Private Limited (AAR Delhi)

In Re Shell Technology India Private Limited (AAR) - The applicant is said to be providing scientific and technical services to Overseas Shell group entities. SSSABV, a company incorporated in Netherlands, through its branch in the Philippines, is currently providing back office financial services relating to accounts etc. to the applican...

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AAR Application not maintainable if same issue pending before tax/appellate authorities in payers case

In Re- Advance Ruling Authority (AAR Delhi)

Foster Pty. Ltd., In Re- Advance Ruling Authority The applicant is a company incorporated in Australia and is a tax resident of that country. The applicant entered into a contract with Ravva Oil Singapore (Singapore) Pte. Ltd., a company incorporated under the laws of Singapore for provision of services in connection with the business of ...

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The Liaison Office (LO) of non-resident taxpayer would qualify as business connection PE in India if the activities of the LO not confined to purchase of goods in India for the purpose of export

In Re. Columbia Sportswear Company, (AAR Delhi)

Columbia Sportswear Company Vs. DIT (International Taxation), Bangalore - (Advance Ruling Authority) - In addition to the activities relating to the purchase of goods, the Liaison Office was carrying out various activities such as ensuring the choice of quality material, occasional quality testing, conveying of requisite design, picking o...

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Whether the amount paid/payable by the Applicant to LSCL under the transaction mentioned in Annexure III in respect of Offshore supply of Equipments is liable to tax in India in the hands of LSCL, i.e. the recipient non-resident Korean company?

In Re. Deepak Cables (India) Limited Vs. DIT (International Taxation) (AAR Delhi)

Deepak Cables (India) Limited Vs. DIT (International Taxation), Bangalore (Advance Ruling Authority)- It is the case of the applicant that transfer of the goods by LS Cables, Korea to the applicant being outside India, there is no territorial nexus for taxation regarding those off-shore supplies. It is pointed out that the applicant after...

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Reimbursement of seconded employee salary to expatriate employees is fees for included services- AAR

In re Verizon Data Services India Private Limited (AAR Delhi)

Verizon Data Services India Private Limited (A.A.R. Nos. 865 of 2010) - The AAR held that the seconded personnel are employees of a foreign company and render managerial services to the Applicant. Hence, the payments made would be in the nature of income and would be regarded as fees for included services under the provisions of the India...

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Foreign companies to pay tax on revenue earned under seismic data acquisition and processing contracts – AAR

OHM Limited Vs. DIT (AAR Delhi)

OHM Limited v. DIT (AAR No. 935 of 2010) - Foreign firms operating in the country will have to pay tax at the existing rate of 4.223 per cent on revenue earned under seismic data acquisition and processing contracts, says a tribunal. In a ruling, the Authority of Advanced Rulings (AAR) held that foreign firms would not enjoy any leeway e...

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Taxpayer holding tax residence certificate is eligible for the India-Mauritius tax treaty benefits

In Re. D.B.Zwirn Mauritius (AAR Delhi)

Authority for Advance Ruling (AAR) in the case of D.B.Zwirn Mauritius (AAR No. 879 of 2011) (Judgment date: 28 March 2011) dealt with the issue of taxability of capital gains on sale of shares by a Mauritian entity under the Income-tax Act, 1961 (the Act) or India-Mauritius tax treaty (the tax treaty). The AAR held that the applicant, hol...

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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

In Re. LS Cable Ltd. (AAR Delhi)

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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Minimum Alternate Tax (MAT) provisions not applicable to foreign companies if no physical presence in India

In re The Timken Company (AAR Delhi)

The applicant is a company incorporated in the United States and is a leading manufacturer of engineered bearings, alloys etc. The applicant has a significant shareholding in an Indian listed company, which was initially set up as joint venture with Tata Iron and Steel Company....

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AAR rules no capital gains on Part IX conversion of firm to company

In re M/s Umicore Finance Luxembourg (A.A.R. No. 797 of 2009)

This Tax Alert summarizes a recent ruling of the Authority for Advance Rulings (AAR) [A.A.R. No. 797 of 2009] in the case of M/s Umicore Finance Luxembourg (Applicant). There was a sale of shares of a company by its shareholders which had received such shares on conversion of a firm into the company, under the provisions of Part IX of the...

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December 2020