AAR on taxability of Joint Venture in India with a foreign company

The Joint Venture can be treated as an association of persons (A.O.P.) in consonance with section 2(31)(v) read with the Explanation to section 2 of the Act and liable to be assessed as such under the Income-tax Act.

All the partners of J.V. have joined in for common purpose on their own volition to produce income which is shared in certain ratio.

The J.V. is to be taxed in the status of an association of persons @ 41% net basis.

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