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: articles on VAT and GST in India :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: VAT Audit :: due date for vat payment :: ACCOUNTING STANDARDS :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
« News Headlines »
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout

Offshore supplies to projects in India not taxable in select cases
August, 18th 2008

Profits of a foreign company arising from offshore supplies to Indian projects are not liable to be taxed in India if the foreign companys office in India has no role in these projects, according to a ruling by the Income-Tax Appellate Tribunal (ITAT).

The ITAT order last week was on an appeal filed by South Korean company LG Cables. In this case, the ITAT bench headed by president Vimal Gandhi held that though the agreement for supply of equipment was entered in India, this alone cannot be a ground for taxing the foreign companys income from these projects.

LG Cables has a project office in India with RBI approval. LG Cables was awarded contracts for execution of onshore fibre optic cabling system and for offshore supplies and services by PowerGrid Corporation of India, a PSU. The tax payer claimed a loss of Rs 86 lakh on the project execution of onshore fibre optic but on the offshore supply aspect, the company took a view that this income was out of the ambit of Indian tax authorities. The Indian I-T department accepted the claim of loss on onshore business but rejected the claim that offshore business was not taxable in India. The department took a stand that the Indian operation of the company was closely linked to its offshore operation. And hence, the department brought it under the tax net.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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