« Top Headlines » Open DEMAT Account in 24 hrs  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals   Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Why you need not rush to file your ITR immediately  Income tax returns: ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing  Section 80DDB tax benefits for specified illnesses: 5 things to know  Income tax slabs FY 2024-25: Five tips to help taxpayers decide between old and new income tax regimes  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 (AY 2024-25) available now on e-filing income tax portal  How To Save Tax For Salary Above 15 Lakhs? «  EU plans tax law changes to hone competitive edge... Auditors wary of appointment leeway... » SC issues notices to I-T in Morgan BPO case September, 19th 2006 The spotlight is again on the issue of taxation of business process outsourcing (BPO) units in the country. The Supreme Court on Monday issued notices to the income tax department in the Morgan Stanley BPO case. A decision by the court, either way, will decide whether income tax authorities will have the right to tax BPOs of multi-national companies. In this case, Morgan Stanley had obtained an advance ruling from an arm of the tax department, the Authority for Advance Ruling (AAR), that outsourcing carried out by its Indian subsidiary did not constitute a permanent establishment. AAR is a quasi-judicial body, set up to give opinion to guide companies on their potential tax liabilities. The AAR ruling meant that the company would not have to pay corporate tax in India on a portion of its profit, provided that the BPO and the overseas parent did not violate fair pricing norms or arms length pricing. But the income tax department challenged the ruling and Morgan filed a cross appeal against it. The court will now hear both the appeals together on whether they can be admitted or not. However, no fresh date has been fixed for the hearing as yet, Jai Savla, counsel for Morgan Stanley said. Morgan Stanley has a captive BPO in India Morgan Stanley Advantage Services (MSAS) which provides support services IT and research.