« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  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.