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: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: VAT RATES :: list of goods taxed at 4% :: articles on VAT and GST in India :: VAT Audit :: form 3cd :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
ITAT-Constitution of Benches »
 Income Tax Appllate Tribunal Pune Banches Pune, Causelist for Bench 'A' for the week Ending 23/06/2017
 Income Tax Appllate Tribunal Mumbai Consolidated list of orders ready for Pronouncement on 21/06/2017
 Income Tax Appellate Tribunal Chennai Benches Chennai Constitution for the week from 12/06/2017 To 15/06/2017
 Income Tax Appellate Tribunal New Delhi Constitution of Benches from 12/06/2017 To 16/06/2017
 Income Tax Appellate Tribunal Revised Constitution of Pune Benches for the Period from 19/06/2017 To 23/06/2017
 Income Tax Appellate Tribunal Revised Constitution of Mumbai Benches for the Period from 19/06/2017 To 23/06/2017
 Income Tax Appellate Tribinal : Bangalore Benches : Bangalore Constitution for the week from 19/06/2017 To 22/06/2017
 Income Tax Appellate Tribunal, New Delhi Benches, New Delhi Constitution For The Period From 12-06-2017 To 16-06-2017
  Income Tax Appellate Tribunal, Ahmedabad Benches, Ahmedabad Constitution For The Period From 12-06-2017 To 15-06-2017
 Income Tax Appellate Tribunal, Ahmedabad Benches, Ahmedabad Constitution For The Period From 12-06-2017 To 15-06-2017
 Income Tax Appellate Tribunal:Bangalore Benches: Bangalore Constitution for the week from 12.06.2017

Foreign payments taxable: ITAT
May, 28th 2010

It has been a big win for the tax department in the Income Tax Appellate Tribunal as a Mumbai bench of ITAT has held that a payment to a foreigner is taxable even if the service is not rendered in India.

The ruling has been delivered in the case of Ashapura Minichem Limited, which entered into an agreement with a Chinese company, under which Ashapura was to pay the Chinese company $1mn in return for bauxite testing services.

Ashapura contended before the ITAT that since no part of testing services was rendered in India, the Chinese company did not have any tax liability in India and hence there was no withholding tax obligation in this case.

Ashapura also contended that Article 12 (4) of the India China tax treaty required the service to be performed in India for it to be taxed as 'Fees for technical services.'

The ITAT however was not impressed. It held that the arguments put forward by the assessee no longer held well in view of retrospective amendment in Sec 9 (carried out by Finance Act, 2010).

The ITAT ruled that It is no longer necessary that, in order to attract taxability in India, the services must also be rendered in IndiaAs the law stands now, utilization of these services in India is enough to attract taxability in India. 

And in an important observation, the ITAT held that The concept of territorial nexus, for the purpose of determining the tax liability, is relevant only for a territorial tax system in which taxability in a tax jurisdiction is confined to the income earned within its borders.

The ITAT further ruled that the payment was taxable under Article 12 of India China treaty as the words Provision for Services mentioned in the treaty had a wider scope. The ruling was delivered by a 2 member bench of Pramod Kumar and RS Padvekar.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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