Types of P.E that can be triggered in India
Mar. 01, 2018
Understanding of Permanent Establishment is basic criteria for sheer understanding of International Taxation. Once the basics are understood, further arduous journey of understanding International Taxation can be endeavoured. Article 5 of mostly all DTAA’s deals with concept of P.E. Below is the brief gist of types of PE that can be triggered by the taxmen.
Interest on IT Refund is not taxable as per Article 12(3)
Feb. 24, 2018
Madras HC Ruling in the case of Ansaldo Energia Spa strengthens the position of law that interest on Income tax refund is a debt claim due from the government.
Such interest will not be treated as business income of the taxpayer.
Further, "Interest on IT Refund" is rightfully covered under expression “interest” as defined in Article 12(4) of India-Italy DTAA. Thus interest on Income tax refund will not be taxable in the source country as per …
ABB FZ-LLC Transfer Pricing Rule
Feb. 07, 2018
Read the judgement of Bangalore ITAT in ABB-FZ case and decide yourself, with all due respect, about the correctness of decision rendered by ITAT.
If you aren't sure of realizing income, then don't add it.
Feb. 07, 2018
You pay income tax on income that you earn. You know this very well. Earned income is calculated on accrual concept. Accrual concept demands you add all the income that is due, even if cash hasn't been received. What should you do if per accrual concept you have to book income but you are damn sure that the other person wouldn't pay it? In that case, courts say that you should not add.
How to avail stay of demand from A.O
Feb. 07, 2018
This write up deals with the way in which stay of demand can be obtained. Stay of demand is basically provided when you appeal against the order of A.O to higher forum. Its a prerogative of A.O to grant stay of demand. Read below so as to ensure that A.O is duty bound to grant stay in your case.
Why did Bombay HC not uphold tax officer's penalty order?
Feb. 07, 2018
Bombay HC in the case of Shankar D. Dhanwatey and Others held that it is necessary that the succeeding tax officer intimates the assessee before passing the order about his intention to continue the proceedings from the stage at which they were left by his predecessor.
Application of Section 50C is prospective in nature
Feb. 02, 2018
Madras HC in the case of R.Sugantha Ravindran held that Departmental circulars are binding on the revenue and that department cannot contend that the circular are against the statutory provisions. HC also opined that amendment brought in Section 50C by Finance Act, 2009 is prospective in nature and cannot be applied to transactions undertaken prior to 01.10.2009.
Basic Concepts Of PE
Feb. 01, 2018
Understanding of Permanent Establishment is basis for sheer understanding of International Taxation. Once the basics are understood, further in depth study can be done of the topic.
In this article, all terms which are extensively used in concept of PE has been elaborated.
Apex Court ruled, Interest on NPA accounts taxable on receipt basis
Jan. 31, 2018
The Honorable SC in the case of Vasisth Chay Vyapar Ltd. ruled that income of NBFC's have to be computed in accordance with prudential norms of the RBI and that Section 45Q of RBI Act overrules Section 145 of Income Tax Act. Thus interest on NPA accounts will be taxable on receipt basis and not on accrual basis.
In the absence of FTS clause, income to be treated as Business Income
Jan. 31, 2018
In the recent case of Booz UAE, Mumbai ITAT held that in the absence of specific article regarding FTS, income will be taxable as business income under Article 7. Further since the Booz UAE did not have any PE in India, such income would be taxable in UAE only and not in India.