« Top Headlines » Open DEMAT Account in 24 hrs  ITR filing deadline extension now demanded by this Tax Bar Association due to many issues including technical glitches with ITR portal  GST Rule Changes for FY 2025 26  Income tax return filing 2025: Five ITR mistakes that can trigger an income tax notice in 2025  ITR filing What is updated income tax return and ITR U Who can file & what you can t change - top points to know  Shifted to new tax regime? Here are 5 investments you shouldn't drop  Auditing and Assurance Standards Board Expert Panel for addressing queries related to Statutory Audit pertaining to auditing aspects. «  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.