Case Law Details
JCDecaux S.A. Vs ACIT (ITAT Delhi)
Conclusion: Surcharge and Education Cess was not leviable on receipts in the nature of Royalties and reimbursements of other expenses, which was offered to tax by assesse on gross basis under the India – France DTAA.
Held: Assessee- company was incorporated under the laws of France. It was a holding company of “JCDecaux” group. During the relevant period, assessee company was engaged in the field of ‘outdoor advertising’. Assessee was owner of all intellectual property rights developed and used by the JCDecaux group across the globe. Assessee entered into an agreement with the VCD India’, for providing various functional and management support. The management fee had been received by assessee during assessment year 2011-12 and 2012-13. Assessee filed return of income for assessment year 2011-12 showing income, which was taxed at the rate of 10% on a gross basis. AO had levied Surcharge and Education Cess on receipts in the nature of Royalties and reimbursements of other expenses, which was offered to tax by assesse on gross basis under the India – France DTAA. It was held that as per provisions of the India France treaty on the issue being similarly worded with the provisions of the India UK DTAA, following the finding of the Tribunal in the case of BOC group Ltd. wherein it was held that surcharge and education cess was not leviable when the tax rate was prescribed under DTAA, AO was directed to delete the education cess and secondary and higher education cess levied on the Income-tax on the gross basis under the India France DTAA.
FULL TEXT OF THE ITAT JUDGEMENT
These two appeals by the assessee have been preferred against two separate final assessment orders dated 29/01/2015 and 25/01/2016 passed by the Deputy/Assistant Commissioner of Income Tax, Circle-2(1)(2), International taxation, New Delhi (in short ‘the Assessing Officer’) for assessment year 2011-12 and 2012-13 respectively, framed under section 144C(13) read with section 143 (3) of the Income-tax Act, 1961 (in short ‘the Act’) pursuant to the directions of the Learned Dispute Resolution Panel in respective years. The issues raised in both the appeals being identical in nature in same set of facts and circumstances and, therefore, these both appeals have been heard together and disposed off by way of this consolidated order for convenience.
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Dear sir,
my question is i have taken service from foreign compnay i need to make payment, will surcharge and cess is applicable with tds?
they have residency certificate and no pe certificate.