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: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: articles on VAT and GST in India :: form 3cd :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: VAT RATES :: empanelment
News Headlines »
 CBDT releases Income Tax Return statistics for last two fiscals
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 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

Payment to overseas bio-research cos not taxable in India:AAR
September, 16th 2008

A tax tribunal today said overseas firms providing research facilities for clinical and bio-analytical studies to Indian companies for developing of new drugs are not liable to pay tax here, if they do not have a permanent establishment in the country.

"The fee paid by Sandoz Pvt Ltd, Ranbaxy Research Laboratories in respect of bioequivalence tests conducted by it is in the nature of business profits under Article 7 of DTAA (double taxation avoidance agreement) and the same is not taxable in India as the applicant does not have a permanent establishment," the Authority for Advance Ruling said.

The AAR ruling came following an application filed by Canada-based Anapharm Inc, which wanted to know whether the fee received by it from the Indian companies for undertaking clinical and bio-analytical studies would be taxed in India.

The tribunal said the Canadian company is in the business of providing bio-analytical services to various pharmaceutical companies, "the consideration received by it from them (Indian companies) would be its business income".

The AAR added that since there was nothing to prove that the Canadian company had a permanent establishment in India, the income earned by it cannot be taxed in India under the DTAA.

While giving its ruling, the AAR rejected the contention of the tax authority that payment for such activities can be regarded as royalty income under the DTAA.

"Moreover, the test reports are drug-specific hence the material furnished by the applicant (Anapharm Inc) will not in anyway help the customers to facilitate further research and development of new drugs as contended by the revenue," the AAR ruled.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

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