AAR Rulings - Page 149

Taxability of Income to American company by allowing use of its database located abroad to customers in India

FactSet Research Systems Inc., In re (Authority for Advance Rulings)

The applicant maintains a `database' which is located outside India and which contains the financial and economic information including fundamental data of a large number of companies world-wise. The customers of the applicant are mostly financial intermediaries and investment banks which have the need for such data. The databases contain...

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AAR on taxability of payments made by applicant to a British company for rendering telecom services in India

Cable & Wireless Networks India Pvt. Ltd., In re (Authority for Advance Rulings)

9. (1) The following incomes shall be deemed to accrue or arise in India :— (i) to (v) xx xx xx xx xx xx xx xx xx (vi) income by way of royalty payable by—...

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No tax on Foreign telecom firms for carrying calls abroad: AAR

Foreign telecom firms operating without a permanent establishment in India are no more required to pay any tax on income from carrying international calls and data services in pacts with domestic operators. Giving a ruling on an application from Cable & Wireless Networks India which proposed...

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Posted Under: Income Tax |

AAR rules on whether a liaison office can constitute a permanent establishment

This alert summarizes a recent ruling of the Authority for Advance Ruling (AAR) [2009-TIOL-12-ARA–IT] in the case of K.T. Corporation (Applicant) on the issue of whether a Liaison Office (LO), acting as a communication channel, will constitute a Permanent Establishment (PE) of the Applicant under the Double Taxation Avoidance Agreement ...

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Posted Under: Income Tax |

AAR on importance of the transfer pricing provision over the capital gains provision

In a recent ruling in case of Canoro Resources Limited1 (the taxpayer) the Authority for Advance Ruling (AAR) has held that The transfer pricing provisions shall override the general provisions provided for computing capital gains in the Income-tax Act, 1961 (the Act) in case of transfer of a capital asset by a partner to a firm by way ...

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Posted Under: Income Tax |

Advance Ruling on nature of receipts derived by an Australian company from ONGC

In re Worley Parsons Services Pty. Ltd., (Authority for Advance Rulings- Income Tax)

3. The applicant contends that the services under various contracts except contract no. 5 cannot be brought within the sweep of `royalties' as defined in Art. XII.3 of the Double Taxation Avoidance Agreement (hereinafter referred to as `DTAA' or `Treaty'), that there was no permanent establishment in India except in relation to Contract n...

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AAR on tax liability of a partnership firm to be formed in Canada by a Canadian company for executing its PSCs in India

In re Canoro Resources Limited (Authority for Advance Rulings-Income Tax)

10.1 It is the common stand of both - the applicant and the Revenue, that the nature of income arising from the transfer of the applicant's participating interest in Amguri block to the proposed partnership firm, shall be capital gains. Where they differ is regarding the mode of computation of that income. Whereas the applicant submits th...

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AAR on Allowability of deduction U/s. 36(1)(viii) / 36(1)(viiia) of IT Act claimed by a Government company

In re Rural Electrification Corpn. Ltd. (Authority for Advance Rulings, New Delhi)

5. It would be appropriate to reproduce section 36(1)(viii) of the Act as it stood in the relevant assessment years i.e. A.Y.1997-98 in the following terms: - Section 36(1)(viii) : as it stood in the statute during the A.Y.(1997-98) 36(1) – The deductions provided for in the following clauses shall be allowed in respect of the matters ...

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Service tax payable on re-rubberizing charges collected for reconditioning of used old rollers

M/s Print Top Rubber Industries (Authority for Advance Rulings)

Service Tax - re-rubberizing charges collected for reconditioning of used old rollers – liable to pay service tax: service tax is payable on the re-rubberising charges collected. However, it is made clear that we are not dealing with a situation where the reconditioned rollers are stocked and sold in the market (as and when the buyers a...

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Advance Ruling on entitlement of a non-resident company inter alia to benefits of section 55(2)(b)(i) of IT Act in respect of bonus shares allotted to it by an Indian company

In re Four Star Oil & Gas Co. (Authority for Advance Rulings, New Delhi)

13. To appreciate the above rival contentions, it would be worthwhile to refer to relevant provisions of the Act i.e. section 48 and section 55(2) respectively. Section 48 provides for the computation of capital gains. The key factors to be taken into account while computing the capital gains are (1) the full value of consideration for tr...

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October 2020