Court : Authority for Advance Rulings
..... than 30 days and hence no permanent establishment exists. but at the same time draws our attention to explanation to sub-section 2 of section 9 of the income-tax act, 1961 which is inserted with retrospective effect by the finance act, 2010: explanation : for the removal of doubts, it is hereby declared that for the purposes of this ..... section, where income is deemed to accrue or arise in india under clauses (v), (vi) and (vii) of sub-section (1), such income shall be included in the total income of ..... whether the consideration paid towards managerial and technical or consultancy services attracts the domestic law for imposing tax. the explanation 2 to clause (vii) of section 9(1) of the act is already mentioned supra. now, we are to examine the nature of services undertaken by rrd uk. in the instant case pursuant to the agreement, .....
Tag this Judgment!Court : Authority for Advance Rulings
..... this authority proceeded to hold in a situation like the present one that the application cannot be said to be barred under clause (i) to proviso to section 245r(2) of the act. for the purposes of this case, especially when the application has ..... clause (i) of the proviso to section 245r(2) of the act was not attracted. we may also notice that the applicant in this case is different, while at the same time we take note of the fact that the expression in the applicant s case that occurred in the proviso, was deleted by finance act, 2000. in the case cited, ..... a transaction or issue that is designed prima facie for the avoidance of income-tax. it is true that at the stage of allowing the application under section 245r(2) of the act, the authority can and should consider all these questions. but does that fact prevent the authority from considering the question when the application is taken up .....
Tag this Judgment!Court : Authority for Advance Rulings
..... consideration is incapable of being valued in definite terms or it remains unascertainable on the date of occurrence of taxable event, the question of applying section 45 read with section 48 of the act would not arise. as gil is a company in which public is substantially interested and its shares are listed on bse, any income arising ..... a result of transfer of shares, found favour with the authority. it was held that the liability to capital gains would not arise under section 45 read with section 48 of the act. in the alternative, it was contended that the contribution/transfer of shares carried out in the course of reorganization was in the nature of ..... asia-pacific region by making it a financially strong and important entity of the group. gocpl is an operating company and manages the natural rubber purchasing, delivery, financing, treasury and quality of the worldwide operations of gtrc and as such there is commonality of business interests of the group with gil. with this end in view .....
Tag this Judgment!Court : Authority for Advance Rulings
..... the ruling of this authority on the following questions: 1. whether the application filed by the applicant before the authority of advance ruling is maintainable under section 245n of the income-tax act, 1961? 2. whether the applicant, in relation to the transaction involving sale of shares as explained in the statement of facts, is liable to ..... circular was a clear enunciation of the provisions contained in the dtac, which would have overriding effect over the provisions of sections 4 and 5 of the income-tax act, 1961 by virtue of section 90(1) of the act . 9. on the facts presented by the applicant and in the light of legal position discussed, the applicant is ..... not liable to pay capital gains tax in india in respect of the transfer of shares held in quippo telecom infrastructure limited (indian company) to geraldton finance limited, .....
Tag this Judgment!Court : Authority for Advance Rulings
..... make the foreign companies chargeable to mat. 6.6 the applicant took us to the provisions of section 115j (1a), inserted by finance act 1989, which were identical to section 115jb (2). section 115j (1a) reads as follows: every assessee, being a company shall, for the purpose of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions ..... 30 percent. of the book profit and shall be charged to tax accordingly. the effective rate works out to 12 percent of book profit calculated under the companies act. thus, while introducing section 115ja, the finance minister stated that the effective rate of tax was 12%. in the assessment year 1997-98, the tax rate applicable in case of domestic company was 40 .....
Tag this Judgment!Court : Authority for Advance Rulings
..... transfer of equity shares in jindal praxair would normally be taxable in its hands in india in view of the provisions of section 5 read with section 9 of the act. under section 45 of the act, any profits or gains arising from the transfer of a capital asset, would be chargeable to income-tax under the ..... under the provisions of section 115 jb of the act as the provisions of section 115jb would be applicable only to domestic companies and not to foreign companies. in support it has placed reliance on the notes on clauses explaining the provisions of finance bill 2002, which provide for some amendments to section 115jb. the notes explaining ..... the provisions have accepted/clarified the law that section .....
Tag this Judgment!Court : Authority for Advance Rulings
..... without going into the merits, directed the applicant to approach the director of income-tax (international taxation)( dit ) for a revision of the certificate under section 264 of the it act and also directed hsbc violet investment (mauritius) ltd. to deposit an amount of rupees twenty four crores and fifty lakhs with the court until the ..... , converging arrows, usa by way of capital contribution and loans. gdrs were also utilized for the acquisition of some shares. the fipb unit of ministry of finance by its communication dated 29.12.2004 approved the increase in foreign equity participation in the equity capital of ilandfs investsmart ltd. by the applicant (etm mauritius ..... in fiscal economy which, though at first blush might appear to be evil, are tolerated in a developing economy, in the interest of long-term development. deficit financing, for example, is one; treaty shopping, in our view, is another. despite the sound and fury of the respondents over the so-called abuse of treaty .....
Tag this Judgment!Court : Authority for Advance Rulings
..... for a period of five years from the date of the succession; clause (xiii) in the present form was enacted by the finance act of 2001 in substitution of the previous clause. 7.1 section 47(xiii) specifically excludes certain categories of transfer from the purview of capital gains taxation, but it is subject to the fulfillment ..... cl.(xiii) should be applied. not only that, the consequence of violation of those conditions has been specifically laid down in sub-section (3) of section 47a which was also introduced by the same finance act. we are here concerned with a case of violation of one of the conditions contained in cl.(d) of the proviso to ..... is this aspect which needs to be dealt with. 9. the reasons for enacting section 47(xiii) together with sub-section (3) of section 47a by the finance act of 1998 as seen from notes on clauses are: under the existing provision of the income-tax act, business reorganizations have definite tax implications. transfer of assets attracts levy of capital .....
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..... raw materials were purchased systematically and habitually through an established agency having special skill and competency and such activity amounted to operation as contemplated by section 42(3) of the act. the ultimate conclusion was that it was reasonable to attribute a portion of the profits to such purchases in british india. so also, it ..... itr 101 decided by the supreme court, two questions arose (page 106): (i) is mere purchase of raw material an operation within the meaning of section 42(3) of the act? (ii) can any profit arise out of mere purchase of raw material? the raw materials were purchased in british india. the manufacture and sales took ..... oil company (saudi aramco). it operates through it offices in europe, asia, australia and africa to render services in relation to supply chain management, technical support, finance support and administrative support to saudi aramco and its group companies. in consideration, aoc is paid the cost plus 5% mark-up by saudi aramco, which is .....
Tag this Judgment!Court : Authority for Advance Rulings
..... it is incapable of being valued in definite terms or it remains unascertainable on the date of occurrence of taxable event, the question of applying section 45 read with section 48 of the it act does not arise. 7.3 in the case of k.p. varghese vs ito (sc) (131 itr 597), the supreme court laid ..... international transaction. i do not think that the ruling in canoro resources runs counter to the view expressed by aar as regards the applicability of section 92 of the act. the fact situation in canoro resources case is materially different and the real question which fell for consideration in that case is discernible from the ..... to the following factors : * cyprus belongs to european commission and enjoys the credibility of western europe directives, laws and regulations; * easier access to international banking and finance in a globally recognized jurisdiction; * cyprus is a euro country many of saac international entities work in or are associated to the euro zone; * cyprus is geographically .....
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