Director of Income-tax v. Travelport Inc. – [2023] 149 taxmann.com 470 (SC) Facts: The taxpayers are engaged in the business of providing electronic global distribution services to Airlines through “Computerized Reservation System” (CRS). The taxpayers maintain and operate a Master Computer System consisting of several main frame computers and servers located in other countries, including […]
KINGFISHER AIRLINES LTD. vs. DDIT ITA No.: 86 & 87/Bang./2011 and 143 & 144/Bang./2011
During the years under consideration, it had deputed its pilots and cockpit crew to non-resident companies for training on flight simulators. The ITAT held that since hiring of simulator by itself has no purpose, fee paid for simulator is not royalty. Further, in absence of FTS article in India-UAE DTAA, it was to be treated […]
3F INDUSTRIES LTD. vs. ACIT (2019] 108 taxmann.com 79 (Vizag. – Trib.)
The ITAT held that Compensation paid for contractual default and Rebate given for quality issues is business profits and same is not taxable in India if recipient does not have PE in India FACTS The assessee was an Indian company engaged in trading of certain products. The assessee procured the products from suppliers in India […]
ULO SYSTEMS LLC V DCIT (2019) 105 TAXMANN.COM 259 (DELHI TRIBUNAL); TS-164-ITAT-2019(DEL)
Equipment was placed and personnel were stationed on the vessel of the main contractor for carrying out grouting work. The ITAT held that the vessel was a fixed place of business through which the assessee carried on business Facts: The Assessee is a company incorporated in UAE. The Assessee is carrying on grouting services in […]
ADITYA KHANNA V. ITO (2019) 105 TAXMANN.COM 323, TS-285-ITAT-2019 (DEL)
The ITAT held that credit for state taxes paid in USA can be availed under section 91 of the Act Facts The Assessee individual, is a “Resident but not ordinary resident” in India. During the year under consideration, the Assessee was in India for a period of 224 days. He filed the return of income […]
TDS on AWS, Mail Chimp, Online Ads – URBAN LADDER HOME DÉCOR SOLUTIONS PVT. LTD [TS-773-ITAT-2021(Bang)]
The Assessment years involved are AY 2015-16, 2016-17 and 2017-18. The Assessee-Company is engaged in the business of dealing in home décor products and sells its products mainly through online marketing. The Assessee placed advertisements on the platform of Facebook, Ireland. The Assessee also used the bulk mail facility offered by M/s Rocket Science Group, […]
ENTERTAINMENT NETWORK (INDIA) LTD VS. JCIT TS-767-ITAT-2018 (Mum)
The ITAT held that ‘Make available’ condition of India-UK DTAA has to be read into India-France DTAA. The ITAT held that advisory services for review of strategic and mergers and acquisitions options, do not qualify as FIS in absence of satisfaction of make available condition. FACTS The Assessee, an Indian company made payment to a […]
CIENA COMMUNICATIONS INDIA (P.) LTD VS. ACIT [2018] 98 TAXMANN.COM 458 (DELHI)
This Tribunal decisions deals with issue as to whether rendering on call advisory services in the nature of troubleshooting, isolating problem and diagnosing related trouble and repair services remotely, will satisfy make available condition under India USA DTAA. FACTS Taxpayer is an Indian company and was engaged in the business of providing Annual Maintenance Contract […]
DIMENSION DATA ASIA PACIFIC PTE LTD. VS. DCIT [2018] 99 taxmann.com 270 (Mumbai); TS-604-ITAT-2018 (Mumbai Tribunal)
The Tribunal held that presence of employees is to be tested separately for each type of service for computing Service PE threshold. The Tribunal further held that application of beneficial provisions of the Act for one source of income and treaty for another source of income is permissible FACTS The Assessee is a private limited […]
TAXABILITY OF EMPLOYMENT INCOME OF NON-RESIDENT FOR SERVICES RENDERED OUTSIDE INDIA
Taxability of salary or employment income depends on the physical presence of the employee. The place where employees are physically present is generally considered as the place where the salary income is taxable. A Company in India may pay salary to non-resident employees, who have rendered services from outside India. The salary may be credited […]