Withholding tax - Page 7

Withholding tax deductible only if non-resident’s income chargeable to tax in India

The Supreme Court on Thursday rejected the income-tax department’s contention that companies based in India were liable to deduct tax when they make any payment overseas, offering relief to domestic firms and multinational companies based here that w...

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Posted Under: Income Tax |

Reminder : Person receiving income subject to withholding tax is required to obtain Permanent Account Number (PAN)

The Finance (No.2) Act of 2009 introduced section 206AA under the Income Tax Act, 1961 (the ITA) to provide that any person who is entitled to receive any sum or income or amount, on which tax is to be withheld under the ITA shall furnish PAN to the person responsible for withholding of tax. In case PAN is not furnished, minimum withholdi...

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Posted Under: Income Tax |

Fee for technical services may be taxable in India even if completely rendered outside India

Ashapura Minichem Ltd. Vs Assistant Director of Income Tax (ITAT Mumbai)

The decision of tribunal reaffirms the position that after amendment to section 9 of the Act, what is required is that, the services should be utilized in India in order to be taxable in India irrespective of the situs of rendering of the services....

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Replacement of dividend distribution tax with withholding tax to boost business

The cost of doing business in India could come down if the dividend distribution tax (DDT) levied on foreign shareholders is replaced with a withholding tax as under the current system, apex chamber Ficci has said. According to the chamber, foreign shareholders are unable to claim credit in the home country for DDT paid in India, resultin...

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Posted Under: Income Tax |

I-T department asks Sanofi Aventis to Pay 650 Crore withholding Tax over its Acquisition of Shantha Biotech last year

Close on the heels of Vodafone-Essar contesting a tax case in the Bombay High Court, tax sleuths have snared another multi-national company for tax evasion. This time, French pharma firm Sanofi Aventis, that acquired India’s Shantha Biotech last year, has been asked to pay Rs 650 crore as capital gains tax to the Indian government. ...

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Posted Under: Income Tax |

Vodafone was advised by Income Tax department to pay withholding tax before payment

THE Indian tax authorities had advised British telecom major Vodafone to pay tax on its $11-billion acquisition of Hutchison Essar before it sealed the transaction, according to a recent income tax order. In a letter on March 23, 2007, the Income Tax (I-T) department had asked Vodafone to pay withholding tax, nearly one-and-a-half month b...

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Posted Under: Income Tax |

Swiss bank not willing to share info and alternatively offered to tax their foreign clients'

Swiss banks have offered to tax the money deposited with them by Indians and other foreigners and "immediately deliver the cash" to governments of respective countries, rather than sharing the details of their clients. Switzerland has come under increasing global pressure to share information about black money stashed in its banks. Possi...

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Posted Under: Income Tax |

Withholding tax obligation applies on payments to non-residents only if there is income chargeable to tax in India

ITO Vs. Prasad Production Ltd. (ITAT Chennai)

The Special Bench of the Tribunal, departing from the Karnataka High Court’s decision in the case of Samsung Electronics, rules that withholding tax obligation on payer applies on payments to non­residents only if there is income chargeable to tax in India. Further obtaining CA’s certificate is an alternative procedure for lower or n...

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Taxpayer obligated to withhold tax only if payment is chargeable to tax under the provisions of Income Tax Act

Van Oord ACZ India (P) Ltd. (Delhi High Court)

This Tax Alert summarizes a recent ruling of the High Court (HC) of Delhi in the case of Van Oord ACZ India (P) Ltd. (Taxpayer) [2010-TIOL-187-HC-DEL-IT] on withholding tax obligation arising under the provisions of the Indian Tax Law (ITL) in respect of reimbursement of expenses to non-resident companies. The Delhi HC held that a payer i...

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Liability to withhold tax would arise only if payment to overseas entities liable to be taxed in India

In a decision that could have a bearing on all cross-border transactions, including those related to the Indian Premier League teams that are currently being probed by tax authorities, the Delhi High Court has ruled that any liability to withhold tax would arise only if payments to overseas entities is liable to be taxed in India....

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Posted Under: Income Tax |

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July 2020