Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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 INPUT TAX CREDIT IN VAT :: form 3cd :: due date for vat payment :: ACCOUNTING STANDARDS :: empanelment :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: cpt :: list of goods taxed at 4% :: articles on VAT and GST in India :: VAT RATES :: ACCOUNTING STANDARD :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
« News Headlines »
 Income-tax (21st Amendment) Rules, 2017
 Deadline for filing income tax return nears; here are 10 common mistakes that you must avoid
 All you need to know about form 26AS
 How to file income tax return?
 7 changes that affect income tax return filing this year
 How To File Income Tax Return (ITR) Online For FY2016-17? Last Date July 31
 Last date for filing income tax return approaches: What is Form 26AS? How it can help you claim refunds
 Income Tax department to launch mobile app to make life easy for taxpayers
 6 things to remember while filing your income tax return
 Want to save on tax? Here are deductions you can use while filing ITR
 July 31 Is Last Date For Filing Tax Return. Why Form 26AS Has To Be Checked

SC riders on tax rebate for foreign institutes
May, 27th 2008
The Supreme Court has said that non-profit foreign educational institutions having branch offices in India can claim tax exemption only if they impart education in India. The non-profit tag of such institutions has to be tested against India activities and not the calculation of income over expenditure to decide whether they are qualified to be such organisation for tax exemption, the apex court said in a ruling. 

A bench comprising Justice SH Kapadia and Justice BS Reddy said: If the applicant wants exemption under Section 10(23C)(vi)(Income Tax Act, 1961) it has to impart education in India and only then it would be entitled to claim initial approval under that section.

The court said that the concept of non-profit of the such foreign controlled educational institutions has to be tested against the Indian activities. Our conclusion is that imparting of education must be in India if applicant desires exemption under Section 10 (23C)(vi) and that excess/deficit of income over expenditure will not decide whether the applicant exists for profit or not, said Justice Kapadia. The court further said: With the insertion of the provisos in section 10(23C)(vi) of the 1961 Act, it is open to the Prescribed Authority (CBDT) to stipulate, while granting approval, that the approval is being given subject to utilisation/application of certain percentage of income, in the accounting sense, towards imparting of education in India. Such exercise would be based on estimation... It is open to the PA, if it deems fit, to stipulate that certain percentage of accounting income would be utilised for imparting of education in India. Therefore, in our view, it is always open to the PA to impose such terms and conditions as it deems fit.

The court passed the verdict deciding an appeal of the American Hotel & Lodging Association Educational Institute. It was a non-profit organisation set up in USA and was granted tax exemption as an educational institute there. Appellant had a branch office in India, mainly to comply with its obligations under various agreements with the Government of India (Ministry of Tourism). Its branch provides a central focal point in India for Indian missions to avail of its educational courses. The branch office collects data from educational institutions/persons wishing to take the courses offered in the field of hospitality and fees for the required course material which was remitted to the USA.

After collection of data and fees, its head office sends course materials, examination papers etc. to the branch in India for onward transmission to the actual user. The costs of running the branch office was met by deducting the same from the amounts remitted to the head office.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software 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