AAR: Export commission to non-resident agent taxable; TDS u/s 195 applicable

Export commission paid to non-resident agent taxable u/s Sec 5(2)(b) read with Sec 9(1)(i); Right to receive commission accrued in India as the export order was executed in India; Agent

Feb 24,2012

AAR: ‘Preparatory activities’ to be included for determining existence of PE under Article 5(5) 

Payment under a composite contract of installation work, could be segregated into mobilization segment and other segments (on facts); Composite contract providing a separate consideration for different activities and jobs,

Feb 17,2012

AAR: Follows Karnataka HC, rules income from Indian distributor for sale of software products taxable as 'royalty'

Payment received from Indian distributor under Software Distribution agreement taxable as Royalty under Sec 9(1)(vi) of the Act as well as Article 12 of India-Australia DTAA; Sale/license to use software entails transfer

Feb 15,2012

AAR: IT sharing services of WAN, Lotus Notes paid to French group co liable for TDS 

IT sharing services of WAN, Lotus Notes to be provided by French Group company to Indian subsidiary create PE in India; PE exists in India since business was carried on

Feb 14,2012

AAR: Income received by non-resident for 'offshore supply' of equipment, not taxable in India; Ishikawajima relied on

Consideration for offshore supply of equipment not taxable in India; SC ruling in Ishikawajima Harima relied on: Revenue’s contention that tax liability ought to be determined considering indivisibility of contract,

Feb 03,2012

AAR: Consideration for offshore supply of equipment not taxable in India; Ishikawajima relied on 

Consideration for offshore supply of equipment not taxable in India; SC ruling in Ishikawajima Harima relied on; Though applicant had business connection in India, no business in relation to offshore

Feb 03,2012

AAR: Cost contribution received for business support services by UK group company taxable as FTS 

Various business support and advisory services rendered to Shell India by UK group company, held to be ‘technical’ and ‘consultancy’ services; Such services ‘made available’ to Shell India since UK

Feb 02,2012

AAR: AAR rejects payer's application, when issue pending in payee's proceedings

Nuclear Power Corporation’s application for ruling on taxability of payment to non-resident  not maintainable, when proceedings pending against payee; Advance ruling is not only applicant specific, but also transaction specific;

Dec 23,2011

AAR: Netherlands DTAA applicable though services rendered by Philippines branch of Dutch resident  

  Income of non-resident from back office financial services not taxable as FTS under India-Netherlands DTAA & no TDS u/s 195 attracted on payments by Shell Technology India; India-Netherlands treaty applicable though services

Dec 22,2011

AAR: Cost allocation for Group support services taxable as FTS under India-Netherlands treaty 

Receipt by Dutch company from operational and support services to Group companies through cost allocation taxable as FTS under Article 12 of India-Netherlands DTAA; FTS definition containing 'Make available’ clause

Dec 12,2011