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: form 3cd :: ACCOUNTING STANDARDS :: VAT RATES :: list of goods taxed at 4% :: cpt :: TDS :: empanelment :: due date for vat payment :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit
 
 
News Headlines »
 How to save income tax? Here are 6 investments with tax free income
 10 Top salary deductions that can save tax for you
 What are the tax saving options beyond Section 80C?
 The penalties for not paying tax on time
 How to make your salary tax efficient
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)
 Price Waterhouse gets 2-year ban in Satyam case
 How to save income tax under section 80C

Tax exemption for foreign cos with no base in India
September, 17th 2008

Foreign companies without a permanent establishment in India and providing research facilities to Indian firms for developing new drugs, are exempt from paying tax in the country. Further, unless there is a transfer of technology or know-how to the recipient of the service, it cannot be classified as technical services, the Authority for Advanced Rulings (Income Tax) has said.

The AAR's decision comes in the case of a Canadian company Anapharm Inc, which conducts bio-analytical tests on drugs, manufactured by Sandoz Pvt Ltd and Ranbaxy Research Laboratories. Anapharm has entered into agreements with the two Indian pharmaceutical companies for the purpose.

Anapharm had sought to know whether the fee it received from the pharmaceutical companies for undertaking clinical and bio-analytical studies under the agreements would be subject to tax in India under the DTAA between India and Canada.

The AAR has ruled that its fees should be considered as business income, but since it does not have a permanent establishment in India, it is not liable to pay tax in the country under the Indo-Canadian DTAA.

The authority also referred to previous judgements of the Bombay high court in the case of Diamond Services International Ltd and the decision of the Income Tax Appellate Tribunal (Mumbai bench) in the case of Raymond Ltd. "Payment of consideration would be regarded as 'fee for technical/included services' only if the twin test of rendering services and making technical knowledge is available at the same time," the AAR pointed out.

Rahul Garg, executive director PriceWaterhouseCoopers said, "The authority has been consistent in applying the definition of technical services and has once again upheld that unless there is a transfer of technology to the recipient of the service, it would not be classified as fee to be classified as fee for technical services under the Indo-Canadian treaty."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

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