In today’s technology world, businesses require access to high end technology equipment like servers in order to host various services online. Due to this, requirement for these kinds of servers have increased tremendously, especially for e-commerce businesses. Owning/maintaining such servers and upkeep requires skilled manpower, which is a costly affair. So many e-commerce start-up companies […]
DEDUCTIBILITY OF DELAYED REMITTANCE OF EMPLOYEE CONTRIBUTION
On many occasions, the taxpayers remit employee’s contribution to the provident fund and ESI after the due date mentioned in the PF and ESI Act, but before filing the return of Income u/s 139(1). The auditor reports these details in the tax audit report (Form 3CD). However, the taxpayer may claim the deduction for […]
CIT V CALCUTTA EXPORT COMPANY 404 ITR 654 (SC) – ANALYSIS AND FINDINGS
Facts of the case The taxpayer had made payment towards export commission and deduct TDS on same. However, TDS was remitted on 1.8.2005. Since the TDS was deposited post 31.3.2005, the AO disallowed the commission applying the provisions of section 40(a)(ia). The CIT(A), ITAT and HC held in favour of the taxpayer. Revenue filed the […]
MEANING OF TERM INTEREST AS PER SECTION 2(28A) OF THE INCOME TAX ACT, 1961
Section 2(28A) of the Income Tax Act, 1961 defines the term ”interest” to mean interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred […]
ANALYSIS OF DECISIONS IN THE CASE OF LIN V COMMISSIONER OF INLAND REVENUE
LIN V COMMISSIONER OF INLAND REVENUE – IN THE COURT OF APPEAL OF NEW ZEALAND In this case, the Court of Appeal had to deal with whether Ms Lin was entitled to a credit against income tax liability in New Zealand arising due to CFC companies in China for tax spared by China on income […]
ANALYSIS OF DECISIONS IN THE CASE OF STARR INTERNATIONAL COMPANY, INC V USA
STARR INTERNATIONAL COMPANY, INC., v. UNITED STATES OF AMERICA by UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA The District Court of Columbia dealt with the issue whether Starr International Company Inc (hereinafter referred as “Starr” for brevity) is eligible for lower tax rate on dividends it receives from US sources applying the United […]
SC DECISION IN THE CASE OF DIT V SAMSUNG HEAVY INDUSTRIES CO LTD 117 TAXMANN.COM 870 (SC) – ANALYSIS AND LEARNINGS
Background This decision ((2020) 7 SCC 347) of the Honourable Supreme Court deals with the question as to the taxability of income attributable to a “permanent establishment” set up in a fixed place in India under the India – Republic of Korea (“DTAA”). On 28.02.2006, the Oil and Natural Gas Company (“ONGC”) awarded a “turnkey” […]