Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT RATES :: cpt :: TDS :: due date for vat payment :: empanelment :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd
 
 
News Headlines »
 How to link your Aadhaar and PAN details to file income-tax returns
 How to calculate capital gains tax on property sold at less than stamp value?
 Return Filing - Under GST, this is how you will file tax returns from July 1
 Income tax filing FAQs part 1
 Filing Income Tax Returns? Things To Keep In Mind As Deadline Approaches
 Filing of online return for 4th quarter of 2016-17- extension of period thereof.
 New tax accounting standards may reduce leeway for infrastructure companies
 GST – CONCEPT & STATUS – As on 01st May, 2017
 Govt extends VAT deadline, relief for developers
 Income Tax Appellate Tribunal Rules, 2017
 Got your Form 16? You should file income tax returns early to enjoy benefits

Decision on taxability of BPO units likely to be made soon
November, 16th 2006

The issue of taxation of business process outsourcing (BPO) units in the country may be resolved soon. The appeals by both the income tax (I-T) department and Morgan Stanley have been listed for hearing in the Supreme Court (SC) on Friday.

The issue assumes significance for BPO outfits of multinational companies in the country. Any decision either way will settle the question of taxability of the BPO outfits. The verdict in this case will have large ramifications for the fast growing services sector, in which India has a leadership position globally. For any MNC, that sets up an offshore unit, a presence in India has become almost mandatory.

The appeal to the SC arose after the Authority for Advance Ruling (AAR) said that the outsourcing carried by Morgans Indian subsidiary did not constitute a permanent establishment. This ruling meant that the company would not have to pay corporate tax in India on a portion of its profit, provided that the BPO and the overseas parent did not violate fair pricing norms or arms length pricing.

The income tax departments special leave petition contests the ruling given by the AAR on - Morgan Stanley Advantage Services (MSAS), a captive BPO in India - which provides support services to IT and research.

On its part, Morgan Stanley also filed a cross appeal in the SC against the ruling. The court has issued notices to both the parties in the case.

The AAR, is a quasi-judicial body, set up to give opinion to guide companies on their potential tax liabilities. The relief for Morgan Stanley meant that other BPOs could quote the same judgement.

Specifically, the court will decide whether the appeals of both the parties are admissible or not. If any of the appeals of any of the parties or both the parties is admitted, the court would also fix a date for hearing.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions