Court : Authority for Advance Rulings
(By Mr. V.K.Shridhar) The applicant, Transworld Garnet Company Ltd, is a company registered under the laws of Canada. It is engaged in the business of mining, processing and supply of industrial garnet. It is holding 74 per cent of the equity share capital in Transworld Garnet India Private Limited (TGI). The applicant acquired the shares in TGI in lots as below: Particulars Dt. of Purchase No. of Shares Value in INR Lot I 03.09.97 3,449,560 34,495,600 Lot II 27.11.98 1,147,606 11,476,060 Lot III 25.06.99 394,700 3,947,000 Lot IV 16.12.99 6,392,748 63,927,480 Total : 11,384,614 113,846,140 The applicant entered into a share purchase agreement on 10.6.2008 with VV Minerals, a partnership firm registered in India for transfer of its shareholding in TGI. The applicant does not dispute that the income arising out of the transfer of shares is income deemed to accrue or arise in India and chargeable to tax under the head capital gains. As the shares have been held for a period of more than ...
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(By Mr. V.K.Shridhar) The applicant is a Company formed under the laws of the State of Ohio, USA and is a global manufacturer of engineered bearings, alloy and specialty steel related components. It was initially a joint venture between Timken USA and Tata Iron and Steel Company Limited (TISCO), subsequent to which the Company undertook a maiden public issue in the year 1991, and started commercial production one year later. Subsequently, Timken USA acquired the equity shares of the Company from TISCO in compliance with the laws of India. The dates of acquisition of shares of the Company by Timken USA are as below:Date of acquisitionNo. of shares24-07-1991 (Public issue)6,000,00022-11-1991 (Public issue)11,000,00013-04-1994 (Rights issue)8,500,00015-0301999 (Acquisition of shares from TISCO)25,499,98850,999,988Timken India Ltd is listed on the Bombay Stock Exchange. The applicant proposes to transfer 50,999,988 equity shares held by it in Timken India to Timken Mauritius Ltd as part of...
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(By Shri V.K.Shridhar) This application for advance ruling has been filed by a non-resident company under section 245Q(1) of the Income-tax Act, 1961(hereinafter referred as Act). The following facts are stated in the application. 2. The applicant, Praxair Pacific Limited, is a company incorporated in Mauritius and is a tax resident of Mauritius. The applicant has a wholly owned subsidiary company in India, Praxair India Pvt. Ltd (Praxair India). The applicant is holding 237,286,500 equity shares representing 99.99% of the capital of Praxair India. The nominee of the applicant holds remaining 3 shares representing 0.01% of share capital. The applicant also holds 74% of the equity shares capital in Jindal Praxair Oxygen Company Private Limited (Jindal Praxair) and the balance 26% is held by JSW Steel Limited. The applicant is proposing to transfer 74% of the equity share capital in Jindal Praxair to its wholly owned subsidiary company, Praxair India. The consideration for the proposed t...
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Honble Chairman 1. The applicant has raised the following three questions in this application for advance ruling under section 245Q (1) of IT Act, 1961: 1. Whether the profits/losses from futures and options contracts (derivative transactions) carried out on the Indian Stock exchanges are in the nature of Business income in the hands of the applicant under the provisions of the Act read with the Agreement for Avoidance of Double Taxation between India and Canada (Treaty)? 2. Whether profits/losses from transactions relating to purchase and sale of equity shares or other tradable securities on the Indian stock exchanges are in the nature of Business Income in the hands of the applicant under the provisions of the Act read with the Treaty? 3. Since the applicant does not have a permanent establishment (PE) in India as per Article 5 of the Treaty, whether Business income of the applicant (referred to in the question 1 and 2 above) will not be taxable in India under Article 7(1) of the tre...
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Mr. J. Khosla Seabird Exploration FZ LLC (the applicant) is a company incorporated under the laws of Dubai Technology and Media free Zone, Dubai and is a tax resident of UAE. It Is a Geophysical company which conducts seismic surveys and provides offshore seismic data acquisition and other associated services to global oil companies. Its main business activity is 2D seismic data acquisition and processing and 2D/3D offshore shallow water data acquisition and processing. Its other activities relate to study the earths structure to identify the existence of hydro carbons which assist oil companies in identifying locations where to drill and explore oil. These services are aimed at increasing exploration success of its oil and gas clients. 2. The applicant has entered into 3 contracts with the Oil and Natural Gas Ltd. (ONGC) on 20th Feb.,2008 for 2D seismic, gravity and magnetic data acquisition and on-board seismic data processing offshore India, during the field seasons 2007-08 and 200...
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Honble Chairman 1. The applicant is a Company incorporated in Poland and a tax resident of Poland. The applicant provides geophysical services to international oil and gas industry. The applicant conducts seismic surveys and provides on-shore seismic data acquisition and other associated services such as processing and interpretation of such data to global and oil companies. Seismic data acquisition has been explained to mean acquisition of data/information relating to earth structure in order to identify the existence of hydrocarbons underneath. Such services are aimed at increasing the exploration success of its customers and assisting them in maximizing the production from their existing reservoirs. It is explained that seismic surveys can paint the picture of the sub-surface in order to better target oil and gas reserves. The results would help assessing the potential for tapping oil and gas at the particular spot. It is further stated that seismic surveys are conducted to gather d...
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Honble Chairman 1. The applicant which is an Indian Company and is engaged in the business of manufacture and supply of industrial pesticides has filed this application for advance ruling seeking determination of the non-residents tax liability under the Income-tax Act in connection with the proposed transactions with the non-resident Company by name Zaikog Trading Co. Zaikog Trading Co. (hereafter referred to as Zaikog) is a company incorporated in the Republic of South Africa and it is in the business of promotion and distribution of various products. Zaikog has offered its services to promote and market the product known as Imida Chloprid formulation for termite control. For the services rendered by it, Zaikog will receive from the applicant a commission of 3% or a mutually agreed percentage on every completed transaction. In the application, it is broadly stated that the role of Zaikog is to communicate the details of the interested parties to the applicant who will pursue the pro...
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The applicant is a non-resident Company incorporated in United Kingdom. It is engaged in the business of information technology services. The applicant acquired the shares in Zensar Technologies Limited (for short Zensar), an Indian company by making payments in foreign currency between 1963 and 1994, after obtaining RBIs approval. The applicant states that the shares held by it in the said company constituted 26.55% of the entire capital of Zensar and such shares were held for more than 12 months. These shares were listed on the Bombay Stock Exchange and the National Stock Exchange. On 4th July, 2007, the applicant sold its entire shareholding to an Indian company, namely, Jubilee Investments and Industries Limited (for short Jubilee) and a Cyprus company, namely, Pedriano Investments Ltd. (for short Pedriano) for a consideration of Rs. 195/- per share. A copy of the Share Purchase Agreement dated 1.3.2007 has been annexed to the application. 2. It may be submitted at this juncture th...
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Mr. Rao Ranvijay Singh The applicant, M/s. Four Star Oil and Gas Co., is a non-resident company incorporated in United States of America and is engaged in the business of exploration and production of hydrocarbon, marketing of gas and oil and other energy products having assets in various regions around the world. The applicant states that it owns 1,92,684 equity shares in Tide Water Oil and Gas Co.(India) Ltd. (in short Indian Company). The Indian company is a listed public company. The applicant holds 22% of the paid up share capital of the Indian Company. The equity shares held by the applicant consist of original shares, bonus shares and rights shares acquired by or allotted to the applicant over a period of time. The original shares were acquired in US Dollars long back i.e. in 1928. The applicant proposes to sell its equity interest in the Indian Company and for that purpose the applicant has entered into shares sale/purchase agreements with two identified buyers. The proposed t...
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By Honble Chairman This is an application for advance ruling filed under section 245Q of the Income-tax Act, 1961 ( for short the Act) coming up for orders on the point of admission under section 245R(2) of the Act. The following facts are stated by the applicant: 2. The applicant is a company incorporated in Singapore and it is a wholly owned subsidiary of Microsoft Corporation (MS Co) having its headquarters in USA. It entered into a license agreement with Gracemac Corporation (Gracemac) which is also a wholly owned subsidiary of MS Co on 1.1.1999 under which the applicant was granted non-exclusive license to manufacture, reproduce and distribute Microsoft products in Asia including India. In pursuance of the said agreement, the applicant had appointed Microsoft Regional Sales Corporation (MRSC) as the distributor of Microsoft products. MRSC, in turn, entered into agreements with the Indian distributors for the sale of the said products in India. 2.1 Gracemac merged with MOL Corporat...
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