Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get 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) | 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: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: Central Excise rule to resale the machines to a new company :: empanelment :: ACCOUNTING STANDARD :: due date for vat payment :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: form 3cd
 
 
« From the Courts »
 Avenue Asia Advisors Pvt. Limited Vs. Deputy Commissioner Of Income Tax
 Nokia India Private Limited Vs. Deputy Commissioner Of Income Tax
 Uttam Value Steels Limited vs. ACIT (ITAT Mumbai)
 UOI vs. Tata Tea Co. Ltd (Supreme Court)
 CIT vs. ITD CEM India JV (Bombay High Court)
 Rajasthan Tax Consultants Association vs. UOI (Rajasthan High Court)
  H.T. MEDIA LIMITED Vs. PRINCIPAL COMMISSIONER OF INCOME TAX-IV, NEW DELHI
 Commissioner Of Income Tax (Ltu), New Delhi Vs. Oriental Insurance Company Ltd.
 Principal Commissioner Of Income Tax (Central)-2 Vs. Index Securities Private Limited
 Income Tax Appellate Tribunal, Ahmedabad Benches, Ahmedabad Constitution For The Period From 18/09/2017 To 22/09/2017
  M/s Brothers & Sisters Enterprise vs. JCIT (ITAT Kolkata)

Foreign companies need not be taxed: High Court
May, 01st 2010

In a decision that could have a bearing on all cross-border transactions, including those related to the Indian Premier League teams that are currently being probed by tax authorities, the Delhi High Court has ruled that any liability to withhold tax would arise only if payments to overseas entities is liable to be taxed in India.

The decision assumes significance in the background of a Karnataka High Court ruling last year that tax should be withheld from all payments made to overseas entities.

The Delhi High courts decision was given in the case of Maharishi Housing Development Finance Corporation. The ruling was on whether it should have deducted tax while making payment to an overseas entity. Maharishi did not deduct the tax, but the tax officer said that it should have. The tax department disallowed the expenditure under Section 40 a (ia) of Income-Tax Act. The Income-Tax Appellate Tribunal (ITAT) also decided in favour of the tax officer.

The Delhi High Court ruling differed from a Karnataka High Court judgement in the case of Samsung Electronics last October, in which the High Court held that tax has to be deducted in India from all payments made to overseas entities.

Its rationale was that since the taxpayer is not an expert in deciding whether a particular income is liable to be taxed in India, it would be wiser to allow the tax officer to do that.

In the case of Maharishi, the Delhi HC remanded the matter to ITAT to decide whether its payment to the overseas entity is liable to tax in India. The Delhi High Courts decision is the latest in a long line of decisions on the same issue. Apart from the Delhi High Court, the Karnataka High Court and a full bench of Chennai tax tribunal had also given decisions on similar issues.

In a note summarising the order, KPMG said: The Delhi High Court, after following its own decision in the case of Van Oord ACZ India, reaffirmed that the question of withholding tax arises only if payment made to non-resident is chargeable to tax in India.

Vispi T Patel of law firm Vispi T Patel & Associates said: If the payment to the non-resident is not chargeable to tax in India, the question of withholding tax does not arise. The full bench of Chennai ITAT too held a similar view in the case of Prasad Productions.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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