Depending on the facts, the activity of storage and supply of goods in India by a foreign enterprise may need examination to determine impact of the above ruling. For the purpose of the computation of the profit, a PE should be regarded as separate and distinct enterprise wholly independent of the non-resident foreign company.
The AAR upheld the contention that a transfer for the purpose of capital gain should be a legal transfer. The transfer of rights and obligations even if not binding on the third party are still binding on the parties to the agreement therefore consideration against the same could be treated as business profit. In absence of permanent establishment in India, consideration for assignment of supply agreement can not be taxable in India.
The sourcing activity of non-resident purchaser or an agent of such non-resident purchaser for exports of goods outside India will only be covered by the exclusion clause under deeming provisions of section 9(1 )(i) of ITA. A mere service provider may not be eligible to claim benefit of such an exclusion provision.
Payments towards workshops and learning programmes conducted by institutes, where no technical knowledge, experience or skills were shared or made available to the participants, could not be termed as “fees for included services”.
The receipts in the nature of referral fees do not constitute “fee for technical services”. Further, in the absence of a PE in India, the same cannot be subject to tax in India.
The applicant, a Dutch company was incorporated on 11 August 2008. On 6 November 2008, it acquired all the shares of an existing Indian company from another group company located in Germany. The shares were acquired for a consideration of INR 100 million.
FII‘s income from trading in futures and options is in the nature of business income. Special provisions under the domestic tax laws i.e. Section 1 15AD does not preclude FII‘s from earning business income in India.
ABB Limited, an Indian company (ABB India) and ABB Research Limited, Zurich, a Swiss company (ABB Zurich) are part of the ABB group. The group is engaged in the manufacturing of power products and systems technologies and has business activities across the globe in over 100 countries.
Merely coming together and acting in cooperation with each other for the purpose of executing the work while each member carries on its own scope of work independently does not reasonably lead to the conclusion that an AOP has been formed.
Under the specific facts of the case, customization of standardized software specific to client specifications was held to be “fees for included services” as the software developer made available technical knowledge, experience or skill to the client to enable client personnel to operate the software system themselves.
