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: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: VAT Audit :: articles on VAT and GST in India :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: cpt :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: empanelment :: due date for vat payment
 
 
From the Courts »
 Digipro Import & Export Pvt. Ltd vs. UOI (Delhi High Court)
  CIT vs. Hindustan Petroleum Corporation Ltd (Supreme Court)
  DCIT vs. Hita Land Private Limited (ITAT Mumbai)
 GTC Industries Limited vs. ACIT (ITAT Mumbai) (Special Bench)
 Premlata Purshottam Paldiwal vs. CIT (Bombay High Court)
 CIT vs. Tata Power Solar Systems Ltd (Bombay High Court)
  ACIT vs. St. Mary’s Rubbers Private Ltd (ITAT Cochin)
 DCIT vs. Hita Land Private Limited (ITAT Mumbai)
  Liladhar T Khushlani vs. Commissioner of Customs (Gujarat High Court)
 Liladhar T Khushlani vs. Commissioner of Customs (Gujarat High Court)
 CIT vs. Hindustan Petroleum Corporation Ltd (Supreme Court)

Separation fee form is taxable: ITAT
July, 27th 2009

Money received by an employee of a foreign company while leaving the firm, even if it is given as non-compete fee, will be taxable in India, going by a tax tribunal ruling.

In the case of a former Chief Executive Officer of Netherlands-based HCL Deluxe NV (HDX), the Delhi Bench of the Income Tax Appellate Tribunal (ITAT) ruled recently that that USD one million received by him on his termination by the firm would be taxed as salary.

When the business of a company is taken over by another, the firm whose business is sold is given a fee as non-compete fee and it undertakes not to start a similar line of activity.

"The entire amount of US dollar 1000,000 is assessable as profits in lieu of salary," the ITAT order said in the case of Ravinder Behl, who had appealed that the amount should not be taxed as salary.

The tribunal said the money was paid because Ravinder Behl's service as Chief Executive Officer (CEO) of the company was terminated and so the payment is taxable.

Behl was an employee of HCL Deluxe NV (HDX), a company incorporated in the Netherlands, and was appointed in 1998 on a gross salary of more than Rs 50 lakh per annum.

However, there was a clause in the agreement signed by Behl that he would receive a non-compete fee if terminated.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

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