Court : Authority for Advance Rulings
Reported in : (1997)224ITR203AAR
Appellants: Ericsson Telephone Corporation India AB Vs.Income Tax Act, 1961 - Sections 9(1), 28 to 44C, 44D, 115A, 195(2), 245R and 245R(2); Finance Act, 1995; Agreement for Advance Avoidance of Double Taxation Between India and Sweden - Articles 7, 7(3) and 13 1. This is an application by Ericsson Telephone Corporation India AB, a company incorporated in Stockholm, Sweden, under Section 245Q(1) of the Income-tax Act, 1961 ("the Act").2. The relevant facts as stated in the annexure to the application are very few. The applicant-company has been established with the objects of "marketing, sale, hire, procurement and other distribution of products and services within radio and telecommunication and the carrying on of other activities compatible with or related to these objects.". It has entered into contracts with RPG Cellular Services Ltd. of Madras, Motorola of Bombay, and Bharti Cellular Ltd. of New Delhi, for introduction of the cellular system of telecommunication in India. It has ...
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1. The applicant, a resident Indian company, is engaged in the business of plantation and manufacture of tea. The applicant submitted an application under Section 245Q(1) of the Income-tax Act, 1961 (in short "the Act"), in the prescribed Form 34D seeking advance ruling in relation to the determination of tax liability of a non-resident i.e., Moran Holdings, Plc, U.K., pertaining to a transaction undertaken by the applicant with such non-resident.2. As the facts stand out, the applicant purchased 15,20,000 (fifteen lakh twenty thousand) equity shares of Moran Tea Company (India) Ltd. from Moran Holdings Plc, U.K., a non-resident company, as per the sale and purchase agreement (in short SPA) executed between the purchaser (the applicant) and seller (Moran Holdings Plc, U.K.) on January 18, 2007, wherein the purchaser agreed to purchase the said shares of Moran Tea Company held by the seller at Rs. 273 per share. Out of the said shares, the original 5,18,000 shares were acquired by the ...
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Mr. A. Sinha, J. Dr. Virindra Kumar Raina, a non-resident Indian citizen, has filed this application. The applicant has been working and living abroad for several years. At present he is working as a technical advisor to the Government of Bahrain. 2. The applicant states that he has opened various Non-Resident Ordinary Rupee Accounts (NRO accounts) with State Bank of India (SBI) and other nationalized banks through convertible foreign currency remittances. He now intends to return to India for indefinite period during the current financial year itself. Even after his return, the applicant will remain a non-resident during the current year. During this period he proposes to extend the maturity of the existing NRO accounts and also to open new NRO accounts, with convertible foreign exchange. But he does not mention the name of the bank in which new NRO accounts will be opened. He also proposes to file a declaration under section 115-H after his return to India. In the light of these fac...
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Reported in : (1999)239ITR650AAR
Suhas C. Sen, J. (Chairman), Subhash C. Jain and Mohini Bhussry, Members B. Swarup, C.I.T. and H. Srinivasulu, Joint Commissioner of Income-tax appeared in person Income Tax Act, 1961 - Sections 90, 90(1), 91 and 245S(2); Companies (Profits) Surtax Act, 1964 - Section 24A London County Council v. Attorney-General, 1900 4 TC 265; Devabhaktuni Durga Prasad, AAR No. 357 of 1997; Dr. Rajnikant R. Bhatt v. CIT, [1996] 222 ITR 562; Hotel Balaji v. State of Andhra Pradesh, AIR 1993 SC 1048, 1056, [1992] 2 Scale 924; Distributors (Baroda) P. Ltd. v.Union of India, [1985] 155 ITR 120, 124 (SC); In Re: Mohsinally Alimohammed Rafik, [1995] 213 ITR 317 (AAR) 1. An application has been filed by Mr. Cyril Eugene Pereira on October 23, 1997, seeking advance ruling on the following questions : Question No. 1 : On the facts and in the circumstances of the case, and having regard to the fact that- (a) the applicant's stay in India in a year is less than 182 days, and the stay in four preceding years is...
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1. The facts of this case lie in a narrow compass. Shri V. Ravi Narayanan (the applicant), left India on 23rd April, 2007 and is living in the Kingdom of Saudi Arabia. As he has spent more than 182 days outside India, he has claimed the status of a non-resident individual for the financial year 2007-08, corresponding to the asst. yr. 2008-09.He proposes to open a non-resident ordinary deposit (NRO account) with banks in India with the help of remittances from Saudi Arabia. He claims that the interest income arising from that account will be 'investment income' under Section 115C of the IT Act, 1961 (the Act').Accordingly, it will attract income-tax @ 20 per cent under Section 115E of the Act. However, banks in India do not regard this type of income as 'investment income'. They treat it as other income and deduct tax @ 30 per cent. The applicant had taken up the issue with the HDFC bank which finally took the stand that it will deduct tax @ 30 per cent.In the light of the above facts,...
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Justice Syed Shah Mohammed Quadri In this application under section 245Q(1) of the Income-tax Act, 1961 (for short "the Act"), the applicant is a company incorporated in Switzerland and is a tax resident of that country. It is a part of the D Group of companies. E Ltd. is a one of the D Group of companies . It was incorporated in U.K. and it is a tax resident of U.K. The said company was engaged in the business of manufacturing of turbochargers and providing engineering services. XYZ Ltd issued a letter of intent (LOI) duly specifying the key terms and conditions for the supply of turbochargers in favour of E. Ltd. for the purchase of turbochargers for L litres diesel engines in September, 2003. The D Group took up a restructuring exercise with the objective of centralizing key functions in Switzerland whereunder E. Ltd. transferred its business of manufacturing turbochargers on a going concern basis to the applicant w.e.f. 1st January, 2004. Thereafter the applicant is engaged in the ...
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Reported in : (2007)289ITR438AAR
o Income deemed to accrue or arise in India--Under Section 9(1)(i), Explanation to 9(1)(i)Business connection--Applicant, a company incorporated in Switzerland and a tax resident thereof had entered into an agreement with an indian company for manufacturing and supply of turbo charges for vehicle and for that propose it proposed to establish Indian subsidiary to be incorporated under Indian Companies Act, and assigned its rights, interest and obligations in agreement on agreed consideration to be paid to applicant company in instalments. Applicant sought advance ruling under Section 245Q as to whether receipt arising to it would be taxable in India having regard to IT Act, 1961/extent and year of taxability in India in regard to provision of Act and DTAA and liability to withhold any tax under Section 195 if receipt was not taxable in India. Held: From agreement, no business connection of applicant company was established within meaning of Section 9(1)(i) for the purpose of assignment...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (2004)268ITR20AAR
Syed Shah Mohammed Quadri, J. (Chairman), K.D. Singh and K.D. Gupta, MembersDLJMB Mauritius Investment Co. v. CIT, Advance rulings--Tax deduction at source under section 195Interest, etc., paid to non-resident company--External commercial borrowing from foreign company under "Automatic Route" of approval from RBI--No approval from Government of India Payment/credit of interest, upfront fees to be made to the account of A I (Mauritius) Ltd., Mauritius, for an external commercial borrowing to be contracted by the applicant under the automatic route will not exempt from withholding tax as the applicant has not obtained approval under article 11(4) of the Double Taxation Avoidance Agreement between India and Mauritius from the Government of India namely, the Department of Revenue, Ministry of Finance and thus tax is required to be withheld under section 195.Payment/credit of interest, upfront fees to be made to the account of A I (Mauritius) Ltd., Mauritius, for an external commercial bor...
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K.D. GUPTA, J. The applicant is a closely held private limited company incorporated in India and is engaged in the business of development of properties and allied activities. The applicant has allotted 43500 partly convertible debentures of Rs.1000/- each to Weststar Investment Holdings Ltd., a company incorporated in Mauritius. The debentures have been issued with the approval of the Reserve Bank of India. As per the approval given by the Reserve Bank of India, the applicant company can pay interest on these debentures at a rate not exceeding 14% p.a. and only to the extent of profit available. It is also stated that Weststar Investment Holdings Ltd. is not having any place of business or a permanent establishment in India. The applicant company made profits during the year ended 31st March, 2002 and the interest liability being more than the profits available, entire profit will be paid by way of interest to the foreign company. 2. The applicant has filed this application U/s.245Q(1...
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Reported in : (2000)241ITR299AAR
Suhas C. Sen, J. (Chairman), Subhash C. Jain and Mohini Bhussry, Members For Appellant/Petitioner/Plaintiff: Arvind Sonde and Girish Naik, Chartered Accountant Shane G. Montgomery, AAR No. 283 of 1996; In Re: Robert W. Smith, [1995] 212 ITR 275 (AAR); Arthur E. Newell v. CIT, [1997] 223 ITR 776 (AAR); John A. Sayre v. CIT, [1999] 236 ITR 652 (AAR) 1. The applicant, Mr. Vance Robert Heffern, is a citizen of the USA. He is employed with ALLTEL Information Services International Holding Inc.("AISIH"). The employer-company has deputed him to India as a telecom manager at ALLTEL Information (India) Private Limited (AIPL) which is a wholly owned subsidiary of ALLTEL Information Services Inc., USA ("AIS"). AIPL is engaged in the business of developing and providing telecommunication services in India. It has entered into an Operational Support Services agreement ("OSS") with Hughes Ispat Limited (HIL), an Indian company, which has been awarded a contract for rendering telecommunication servi...
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