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 […]
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 […]
APPLICABILITY OF TDS ON REPAIR AND MAINTENANCE SERVICES
As per the provisions of Section 9(1)(vii) of the Act payment by resident to non-resident is liable to tax in India if the payment is towards ‘Fees for Technical Services’ (“FTS”). Explanation 2 under Section 9(1)(vii) defines the term FTS. FTS is defined to include consideration for services of managerial, technical or consultancy nature, including […]
SUPREME COURT DECISION IN THE CASE OF ISHIKAWAJIMA-HARIMA HEAVY INDUSTRIES LTD V DIT [2007] 288 ITR 408 (SC) / (2007) 3 SCC 481 – ANALYSIS AND LEARNINGS
Background The Assessee is a company incorporated in Japan. It is engaged, inter alia, in the business of construction of storage tanks as also engineering etc. It formed a consortium with various parties and entered into an Agreement with Petronet LNG Limited (“LNG Petronet”) on 19-1-2001 for setting up a Liquefied Natural Gas (LNG) receiving, […]
TAXATION OF CLOUD COMPUTING SERVICES UNDER INCOME TAX ACT
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 […]