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, […]
PENALTY UNDER SECTION 271(1)(C) IN CASE OF ADDITIONS AS PER MAP RESOLUTION
Section 271(1)(c) provides that the AO or CIT(A) may levy a penalty where the assessee has concealed the particulars of his income or has furnished inaccurate particulars of his income. The Karnataka HC dealt with a situation as to whether penalty u/s 271(1)(c) can be levied where the addition is made as per MAP resolution […]
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 […]
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 […]
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” […]