Income Tax : Countrywise withholding tax rates as per the Income Tax Act compared to tax treaties/DTAA. Understand differences & implications f...
Income Tax : The issue is no longer res integra as it has been held by Hon’ble ITAT Mumbai in case of Bennet Coleman & Co. Ltd. Vs ITO(TD...
Income Tax : Section 115A of the Income-tax Act provides for determination of tax in case of a non-resident taxpayer where the total income inc...
Income Tax : A recent ruling of the Supreme Court (SC) in a batch of cases, with the lead case being that of Bharti Cellular Ltd. (Taxpayer), o...
Income Tax : As per Memorandum on Finance Bill, 2010 a source rule was inserted in section 9 of Income-tax Act in 1976 with an intention of bri...
Income Tax : An issue is under debate as to whether payments made by the Indian company to foreign company towards reimbursement of the salary ...
Income Tax : The finance ministry is hoping to recover about Rs 10,000 crore from non-resident service providers to oil and gas explorers in I...
Income Tax : ITAT Delhi held that amount received by the assessee from providing SAP support services and IT support services is not covered wi...
Income Tax : Assessee in all these appeals is Honda SIEL Cars Ltd. (hereinafter referred to as the Assessee). Question of law that is raised is...
Income Tax : Filtrex Technologies Pvt. Ltd. v. ACIT - ITAT Bangalore held that payments made under a Technology Transfer Agreement 'make avail...
Income Tax : The receipts in the nature of referral fees do not constitute “fee for technical services”. Further, in the absence of a PE in...
Income Tax : The assessee, a division of Technical Resources Prt. Ltd. Australia, had entered into contracts with Rio Tinto India Pvt. Ltd. (RT...
Countrywise withholding tax rates as per the Income Tax Act compared to tax treaties/DTAA. Understand differences & implications for dividends, interest, royalties and technical services.
ITAT Delhi held that amount received by the assessee from providing SAP support services and IT support services is not covered within the purview of Fees for Technical Services (FTS) and hence not taxable in India in absence of permanent establishment.
An issue is under debate as to whether payments made by the Indian company to foreign company towards reimbursement of the salary costs of persons deputed to India would be treated as fees for technical services.
Assessee in all these appeals is Honda SIEL Cars Ltd. (hereinafter referred to as the Assessee). Question of law that is raised is also identical. Five appeals are filed only because of the reason that same issue has occurred in different Assessment Years, i.e., for the years 1999-2000, 2001-2002, 2002-2003, 2003-2004 and 2005-2006.
The issue is no longer res integra as it has been held by Hon’ble ITAT Mumbai in case of Bennet Coleman & Co. Ltd. Vs ITO(TDS) [ITA No. 7315/Mum/2008] pronounced on 12-11-2014 wherein the assesse (Times of India) has entered into an agreement with M/s FERAG AG for supply of heavy plant and machinery along […]
Section 115A of the Income-tax Act provides for determination of tax in case of a non-resident taxpayer where the total income includes any income by way of Royalty and Fees for technical services (FTS) received under an agreement entered after 31.03.1976 and which are not effectively connected with permanent establishment, if any, of the non-resident […]
Filtrex Technologies Pvt. Ltd. v. ACIT – ITAT Bangalore held that payments made under a Technology Transfer Agreement ‘make available’ technical knowledge or experience, and hence, are taxable as Fees for Technical Services in terms of Article 12(4)(b) of Double Taxation Avoidance Agreement between India and Singapore. Also, payments made for services in the nature of marketing support and other administrative services do not ‘make available’ technology, and hence, cannot be held as FTS under Article 12 of DTAA between India and Singapore.
A recent ruling of the Supreme Court (SC) in a batch of cases, with the lead case being that of Bharti Cellular Ltd. (Taxpayer), on whether any manual intervention is involved in the technical operations by which a cellular service provider, such as the Taxpayer, is given facility for interconnection. If manual intervention is involved, the payments for such facility would be considered as ‘fees for technical services’ (FTS) under the Indian Tax Laws (ITL) and the Taxpayer would be required to withhold taxes. In this context, one may recall that the Delhi High Court (HC) [319 ITR 139] had earlier held that as these services do not involve any human interface, these cannot be regarded as FTS as contemplated under the ITL.
The receipts in the nature of referral fees do not constitute “fee for technical services”. Further, in the absence of a PE in India, the same cannot be subject to tax in India.
The assessee, a division of Technical Resources Prt. Ltd. Australia, had entered into contracts with Rio Tinto India Pvt. Ltd. (RTIPL) for evaluation of coal deposits in Maharashtra and Orissa and for corresponding feasibility studies for transporting the same.
