Background Section 28(iv) provides that the value of any ‘benefit’ or ‘perquisite’ received, whether convertible into money or not, arising from business or the exercise of a profession, would be assessable as income under the head “Profits and gains from business or profession”. However, at practical level, the taxpayers do not report the receipt of […]
Section 206AB of Income Tax Act – The Story So Far
The Revenue’s love for TDS provisions is ‘boundless’ and ‘infinite’. The evidence of this is their tinkering of TDS provisions in every Finance Bill. They cannot ‘live’ without amending the TDS provisions in every Finance Bill. Finance Act, 2021 had inserted a new provision with an objective of to ensure filing of return of income […]
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 […]
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 […]
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 […]
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 […]