Sponsored
    Follow Us:

Case Law Details

Case Name : CIT Vs. Samsung Electronics Co Ltd (Karnataka High Court)
Appeal Number : ITA No. 2808 of 2005
Date of Judgement/Order : 24/09/2009
Related Assessment Year :
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

This article summarizes a recent ruling of the Karnataka High Court (HC) [ITA No. 2808 of 2005] in the case of Samsung Electronics and others (Taxpayers). The HC held that any payment resulting in any income in the hands of a non-resident would be subject to withholding tax under the Indian Tax Law (ITL). Unless an order is obtained from the Tax Authority for withholding tax at a lower rate or for not withholding tax, a taxpayer would need to withhold tax on the income at the applicable withholding tax rates, even if the income may not be taxable in the hands of the non-resident.

 Facts of the case

  • One of the Taxpayers in the litigation was engaged in the development, manufacture and export of computer software. The Taxpayer imported ‘shrink-wrapped’ computer software from outside India for use in its business. No tax was withheld in respect of such payments on the ground the same cannot be treated as royalty either under the ITL or under the applicable Tax Treaty. However, the Tax Authority held such payments to be in the nature of royalty and subject to deduction of tax at source under the ITL.

Please become a Premium member. If you are already a Premium member, login here to access the full content.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Search Post by Date
July 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031