Compensation including interest not taxable in absence of PE

Court; Mumbai Income Tax Appellate Tribunal Citation: M/s. Gold crest Exports Vs. ITO [2010-TII-124-1TAT-MUM-INTL] Brief :Mumbai Income-tax Appellate Tribunal (the Tribunal) in the case of M/s. Gold crest Exports Vs. ITO [2010-TII-124-1TAT-MUM-INTL] held that compensation payable for breach of contract to a foreign company would not be taxable in the hands of the foreign company in the absence of a permanent establishment (“PE”) of the foreign company in India. The Tribunal further held that interest included in compensation merges with and partakes the character of compensation it...