Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ACCOUNTING STANDARD :: due date for vat payment :: form 3cd :: empanelment :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: Central Excise rule to resale the machines to a new company :: VAT Audit :: list of goods taxed at 4% :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India
« News Headlines »
 TDS on rent and other tax tasks to complete before March 31
 5 income tax changes which will come into effect from April 1, 2018
 Why you shouldn't be a last-minute tax filer
 How to calculate income tax for this assessment year on Moneycontrol
 6 Tax notices you may get and how to cope with them Income Tax Notice
 Deadline to pay advance tax ends tomorrow: Here is a step-by-step guide
  Central Goods and Services Tax (Second Amendment) Rules, 2018
 Income Tax Return Filing Deadline: Waiver On LTCG Tax To End On 31 March. Details Here
 Income tax returns (ITR) filing: Top mistakes that can be very costly
 Income Tax Return (ITR) filing: 6 last-minute things you can still do to save tax for FY17-18
 How to file Income Tax Returns online in 5 simple steps

Taxman makes a case for netting foreign BPOs here
December, 08th 2006

Challenging a finding of the Authority for Advance Ruling (AAR), the department of income tax (DIT) has told the Supreme Court that it has a right to tax a slice of the global income of Morgan Stanley on the ground that Morgan Stanleys BPO operations in India, constituting a permanent establishment (PE), perform an integral role in its securities trading operations.

The affidavit comes in response to a counter petition moved by the US- based investment bank Morgan Stanley, opposing the petition of the DIT. Morgan Stanley had filed the counter appeal after DIT challenged a decision of the Authority for Advance Ruling, to the effect that Morgan Stanley was not liable for taxation in India as its transactions with the Indian BPO were at arms length.

The apex court is examining whether the petitions, the one filed by the department and the counter appeal by Morgan Stanley, are to be admitted or not.

Till the Supreme Court comes out with its decision, DITs stance would discourage American companies from setting up captive BPOs in India.

International taxation is still at a nebulous stage in India and the Supreme Courts decision in the matter will become a major precedent, said Salil Gupta, director, KPMG.

The AAR had conceded that Morgan Stanleys BPO, Morgan Stanley Advantage Services (MSAS), constitutes a service PE. However, since its transactions were at arms length, Morgan Stanleys global income did not come under the purview of Indian tax. DIT has challenged this attribution of income using the principle of force of attraction. Because the BPO acts as the back office without whose services Morgan Stanley would not be able to carry out its securities business, the department believes that the force of attraction principle applies. This, the AAR has overlooked, claims DIT.

Challenging the AAR ruling, the department said the Morgan Stanley was providing services to MSAS which amounted to a service PE in India. The department has also raised the issue of control over the place of working. If the BPO premises are under the control of the parent company which uses it for its own business, it shall be treated as PE.

However, the US-based investment company is yet to file its reply to the notice issued by the Supreme Court on the DIT petition.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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