As the applicant does not have any physical presence in India in the form of an office or branch or a PE, the provisions of section 115JB are not applicable on the sale of shares of a listed company by the applicant, which has suffered securities transaction tax and accordingly, tax exempt under section 10(38)
Section 115JB is not designed to be applicable to the case of the applicant, a foreign company, who has no presence or PE in India.(Para 9.2)
As the applicant does not have any physical presence in India in the form of an office or branch or a PE, the provisions of section 115JB of the Act are not applicable on the sale of shares of a listed company Timken India Limited, by the applicant, which has suffered securities transaction tax and accordingly, tax exempt under section 10(38) of the Act.(Para 10)
BEFORE THE AUTHORITY FOR ADVANCE RULINGS (INCOME TAX), NEW DELHI
A.A.R. No. 836 of 2009
| Name & Address of the applicant | The Timken Company 1835 Dueber Avenue Sw., Canton, Ohio – 44706 0 0928, USA |
| Commissioner concerned | Director of Income-tax (International Taxation) Kolkata. |
| Present for the applicant | Mr.Percy Pardiwalla, Sr. Advocate M/s.Rajan Vora, K.T.Chandy, Chavali Narayan, Chartered Accountants Ms. Preeti Goel, Advocate ,Sridharan R.CFO |
| Present for the Department | None |
Date of Ruling: 23rd day of July 2010.
R U L I N G
(By Mr. V.K.Shridhar)
The applicant is a Company formed under the laws of the State of Ohio, USA and is a global manufacturer of engineered bearings, alloy and specialty steel related components. It was initially a joint venture between Timken USA and Tata Iron and Steel Company Limited (“TISCO”), subsequent to which the Company undertook a maiden public issue in the year 1991, and started commercial production one year later. Subsequently, Timken USA acquired the equity shares of the Company from TISCO in compliance with the laws of India. The dates of acquisition of shares of the Company by Timken USA are as below:
