Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 March 31 deadline is getting near. How to save income tax with tax loss harvesting?
 45-day MSME payment rule: Impact and details of Section 43B(h) explained
 Small savings schemes that offer tax benefits of up to Rs 1.5 lakh under section 80C
 RE-OPENING OF CORRECTION WINDOW FOR MAY 2024 CA EXAMINATIONS
 Powerful Upgrades, Tally 12+1 months renewal Plan and Connected Services for your growing Business - March 2024
 How innovative solutions can help fix the Sec 43B conundrum for MSMEs
 Income Tax dept asks many individuals to explain high value transactions of FY20-21 as Updated ITR deadline nears
 Release Notes for TallyPrime and TallyPrime Edit Log Release 4.1 | What s New!
 Deadline to file updated ITR FY20-21 ends on March 31: Details on additional tax
 4 tax-planning mistakes to avoid this season
 ITR 2024: Here are 8 ways by which senior citizens can save on taxes this year

SET can be taxed independently: ITAT
April, 24th 2007
The Mumbai income-tax tribunal has stated foreign companies could be taxed independently even if their dependent agents are paid on an arms length basis. 
 
The order has been passed in case of Sony Entertainment Television (SET) based in Singapore whose dependent agent is Sony India. SET- Singapore had earlier obtained a relief from the income-tax commissioner (appeals) for not being taxed in India, citing the advance ruling of Morgan Stanley. 
 
In case of Morgan Stanley, the advance ruling authority has stated that if the dependent agent is paid at an arms length in India, the foreign company (Morgan Stanley parent) could not be taxed in India. 
 
The order assumes significance since it will be applicable to all foreign companies which are operating in India on dependent agent basis. The assessment pertains to 2002-03 and the department has raised a demand of over Rs 100 crore. 
 
A dependent agent is one who is legally and economically dependent on the principal (foreign company) and is authorised to negotiate and secure contracts on behalf of the foreign company. 
 
The tribunal has held that the taxation of foreign company could be done since the permanent establishment of the foreign company and dependent agents are two different entities. 
 
In this case, the authorities could tax the permanent establishment of the foreign company independently of the dependent agent. 
 
The PE and the dependent agent are the same entities but the dependent agent is taxed as an Indian entity and the PE becomes the basis on which the foreign company is taxed on its Indian earnings.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting