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 […]
PAYMENT FOR ‘LINE PRODUCTION SERVICES’ WHETHER FTS
Income would be chargeable to tax in India if the same falls within the scope of section 4 read with section 5 of the Act. Section 4 is the charging provision under the Act. The charge is in respect of the total income for any year. The scope of total income chargeable to tax in […]
Volkswagen Finance (P.) Ltd. v. ITO (International Taxation) [2020] 115 taxmann.com 386 (Mumbai – Trib.) – Taxability of Celebrity appearance outside India
BACKGROUND The assessee an Indian company, made a payment of US $ 4,40,000, in respect of a celebrity appearance at Dubai. The assessee did not withhold any tax from the said remittance on the ground that the event took place in Dubai, UAE, and the celebrity made his appearance at the event in Dubai and […]
TDS LIABILITY CANNOT BE FASTENED BY RETROSPECTIVE AMENDMENT OR SUBSEQUENT DECISION
The payer of income does tax deduction as per the law in force when she makes remittance. The Indian legislature has powers to make retrospective amendment to the statutes. Similarly, a judicial decision, which is always retrospective, may reverses a settled position on taxability of income in the hands of payee. A question arises as […]