Court : Authority for Advance Rulings
Reported in : (1999)240ITR518AAR
1. The applicant, "A", is a company incorporated in Canada and is a 100 per cent. subsidiary of a public limited company incorporated in Canada. It holds 16,414,616 shares in an Indian company, which constitute its Indian assets. There is a proposal for a "vertical short form amalgamation" of the applicant and its holding company in accordance with the provisions of Section 184(1) of the Canada Business Corporations Act. As a result thereof, the two companies will amalgamate and continue thereafter as one corporation and the shares held by the applicant in the Indian company will vest in the new corporation. The applicant desires to know whether the proposed transaction will attract any tax under the head "Capital gains" qua the shares of the Indian company held by it.2. The applicant-company has filed this application under Section 245Q(1) of the Income-tax Act, 1961 ("the Act"), and sought an advance ruling on the following questions : "(i) Whether any liability to pay income-tax in...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (1999)238ITR575AAR
1. A. Private Limited and B. Private Limited are two companies incorporated in Australia. They formed an association known as "A and B" for pursuing and carrying out various kinds of projects in India.The venture started functioning in India having secured a project in environment management and pollution control for four integrated steel plants and seventeen captive mines with an Indian company, S. Ltd. Apparently, this attempt was successful and the companies decided to .continue the joint venture the broad terms of which were covered by an "umbrella" agreement dated September 1, 1990, and the specific terms of which, in relation to each project, were to be governed by a project specific joint venture agreement (or "project specific JVA").2. Some of the terms of the "umbrella agreement" are relevant and may first be referred to. Article 1 recorded the acknowledgment by the two companies that as and from the September 1, 1988, they had constituted themselves together as a joint ventu...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (1997)223ITR379AAR
Appellants: In Re: Advance Ruling A. No. P-5 of 1995 Vs.Income Tax Act, 1961 - Sections 6(6), 7, 9, 9(1), 10(4), 115AC, 115AC(1), 115C, 115D, 115E and 115H; Remittances of Foreign Exchange and Investment in Foreign Exchange Bonds (Immunities and Exemptions) Act, 1991; Foreign Exchange Regulation Act, 1973 - Section 2 and 2(26); Unit Trust of India Act, 1963 - Section 32(1) 1. The applicant, in this application under Section 245Q(1) of the Income-tax Act, 1961 (for short "the Act"), is a non-resident Indian citizen. He is stated to have left India in 1970 for employment overseas and, after a sojourn in various African countries he went to the U. K. This application, received by the authority from his address in the United Kingdom, raises certain queries as to his liability to income-tax in India, where he wants to settle down, on retirement, around August/September, 1995. From a photocopy of the entries in the applicant's Indian passport, it is seen that the applicant's stay in India d...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (1997)228ITR487AAR
Appellants: In Re: Advance Ruling P. No. 13 of 1995 Vs.Income Tax Act, 1961 - Sections 2(17), 2(22A), 2(23A), 9, 28 to 44AC, 44C, 44D, 57 and 115A Brooke Bond and Co. Ltd. v. CIT, [1986] 162 ITR 373 (SC); Snam Progetti (S.P.A.) v. CIT (Addl.), [1981] 132 ITR 70 (Delhi); CIT v. VR. S.R.M.Firm, [1994] 208 ITR 400; CIT v. R.D. Aggarwal and Co., [1965] 56 ITR 20; CIT v. Ahmedbhai Umarbhai and Co., [1950] 18 ITR 472; Tata Iron and Steel Co. Ltd, v. State of Bihar, 1. ABC Company of France (referred to hereinafter as "ABC") has, in this application filed under Section 245Q(1) of the Income-tax Act, 1961 ("the Act"), posed as many as thirteen questions for the ruling of this Authority. It is necessary to first outline the transactions which ABC proposes to enter into in India out of which these questions are said to arise.2. A statement of relevant facts was enclosed as annexure "I" to ABC's application dated March 6, 1995. According to this, ABC expected to be awarded a contract by an India...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (1998)234ITR371AAR
Income Tax Act, 1961 - Sections 9, 9(1), 28 to 44C, 44D, 90(2), 115A and 245Q(1) Deputy CIT v. Schlumberger Seaco Inc. (SSI) [994] 50 ITD 348 (Cal); Standard Chartered Bank v. IAC, [1991] 39 ITD 57; State Trading Corporation of India Ltd. v. CTO, [1963] 33 Comp Cas 1057, AIR 1963 SC 1811 1. AB Ltd. was a company incorporated in the UK on June 2, 1983.Subsequently, it changed its name to "Z" Ltd. (hereinafter referred to as "the applicant"). This change in name was registered with Companies Registration Office, UK on December 11, 1984. The applicant entered into three agreements with "X" (an oil company in India) for rendering consulting services for gas flaring reduction project, etc., in December, 1993, May, 1994, and June, 1994. The applicant filed three applications under Section 245Q(1) of the Income-tax Act, 1961 ("the I.T. Act"), on March 9, 1995, in respect of the above three agreements.2. It was stated by the applicant in its application that the company is based in UK having ...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (1999)237ITR382AAR
In Re: Robert W. Smith, [1995] 212 ITR 275 (AAR); Monte Harris v. CIT, [1996] 218 ITR 413 (AAR) 1. By this application under Section 245Q,(1) of the Income-tax Act, 1961, (hereinafter referred to as "the Act"), the applicant seeks an advance ruling of this Authority on the following question : "Whether in the facts and circumstances explained in detail in annexure- I, the applicant is a qualified technician as defined under Section 10(5B) and accordingly the applicant would be entitled to the exemption under Section 10(5B)?" 2. The facts, on the basis of which the question has been raised, have been stated thus : The applicant is a British citizen with a master's degree in chemistry from Oxford University, England, and a master's degree in business administration from Harvard University, United States of America. He has had over twenty years of experience in the paint industry including ten years in an English company. He was in charge of setting up a coating factory in Saudi Arabia f...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (1996)220ITR377AAR
Income Tax Act, 1961 - Section 245R(2); Double Taxation Avoidance Agreement between Mauritius and India - Articles 4, 10, 11(3), 13 and 14 1. These are two applications under Section 245Q(1) of the Income-tax Act, 1961 ("the Act").2. The applicants are limited liability companies incorporated in Mauritius on November 22, 1994. A certificate issued by the Income-tax Department of Mauritius has been produced which purports to be a "tax residence certificate" issued under the convention between the Government of the Republic of India and the Government of the Republic of Mauritius for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains entered into in 1982. These certificates declare that the applicants are "qualified in terms of the aforesaid convention as resident in Mauritius".3. The memoranda as well as the articles of association of the two companies have been filed, which are identical in both cases. The objects of...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (1997)228ITR61AAR
Appellants: In Re: Advance Ruling A. No. P-12 of 1995 Vs.Income Tax Act, 1961 - 10(15); Gift-tax Act, 1958; United States Internal Revenue Code - Section 408 1. The applicant, a non-resident, seeks, by this application, an advance ruling under Chapter XIX-B of the Income-tax Act, 1961 ("the Act").2. The applicant is a citizen of India. He holds an Indian passport.From June 1968, till date, he has been resident in the United States.He was an employee of an American company from October 14, 1974, until retirement on July 1, 1993. His current occupation is management of personal business and consulting work in the USA. Presently, the applicant is not assessed to tax in India.3. During the period of his service with the American company, the applicant entered into an individual retirement arrangement ("IRA") with SIS, a banking institution, and a subsidiary of an American bank.Under Section 408(a) of the United States Internal Revenue Code, the IRA is a trust account of which SIS is the c...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (1999)238ITR99AAR
1. This application, made under Section 245Q(1) of the Income-tax Act, 1961 ("the Act"), raises an interesting question regarding the taxability of certain amounts of royalty paid outside India under certain agreements between two groups of companies. On the one side is a Swedish company which can be conveniently described as "A" and its wholly owned subsidiary known as "B" incorporated in the United States of America. On the other side is "C" incorporated in the United States of America, its wholly owned subsidiary known as "CM" and an Indian company, "IC" in which "CM" holds 51 per cent. of the equity capital.As a result of these agreements, "B" has received and "C" has paid to "B", a one-time royalty of US $ 5,295,756. The question on which "B" seeks the ruling of this authority is : "Whether the royalty paid outside India amounting to US$ 5,295,756 by 'C' to 'B' as a consideration for granting the licence and right to 'IC', a company in which 'CM' has 51 per cent. equity holding, ...
Tag this Judgment!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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