Authority For Advance Ruling


No tax on Satyam's Court ordered multi-million dollar 'penalty' payment in USA 

AAR rules penalty payment by Satyam (applicant) to US Govt. not liable to TDS u/s 195; AAR notes that pursuant to complaint filed by the US SEC (Securities & Exchange Commission ) over the Satyam ...View More

Chinese company's procurement services taxable as FTS, actual performance in India irrelevant 

AAR holds that receipt for services rendered in connection with procurement of goods by the Applicant (a Chinese subsidiary of an Indian company) taxable @10% on gross basis, as FTS under Article 12(4...View More

Management & procurement service payments to UK co not FTS, absent 'make-available' 

AAR rules that amount received by applicant (a UK co.) for providing 'management services' and 'procurement services' to its Indian affiliate not fees for technical services (FTS) under Article 13 of ...View More

E-learning revenues taxable as 'royalty'; Rejects 'copyrighted article' plea for software license 

AAR holds payment received by applicant (an Ireland co. engaged in providing e-learning courses) from an Indian distributor for sale of products to Indian end-users (permitted to access the e-learning...View More

Remuneration to Sri Lankan sales executive not FTS, not taxable in India 

AAR holds Oxford University Press (a publication house in India of Oxford University UK) not liable to withhold tax on remuneration paid to non-resident sales executive in Sri Lanka; Payment not FTS u...View More

AAR follows 'Cairn' ruling; Allows lower tax rate on listed share sale 

AAR holds Pan-Asia iGate Solutions (a Mauritian company purchasing Patni's shares from non-resident US seller) to withhold tax @ 10%; Non-resident seller eligible for lower tax rate of 10% on long ter...View More

'Make available' import into India-France DTAA Protocol denied; Services taxable as FTS 

AAR holds payment by Streia (India) Ltd. (applicant) to Groupe Steria, France for management services taxable as Fees for Technical Services (‘FTS’) under India-France DTAA, liable to tax ...View More

Interprets residence condition; 182 days extension restricted to year of leaving India 

For qualifying as Indian resident, extension of period for Indian stay from 60 days to 182 days under Expl. (a) to Sec. 6(1) for person leaving India for employment, applicable only in year in which p...View More

Rejects application based on mere transaction "intention"; Subsidiary must exist in "reality" 

AAR rejects application by UAE company (‘applicant’), holds there is no ‘transaction’ or ‘proposed transaction’ of applicant with Indian companies u/s. 245N(a)(i); ...View More

Discusses PE , business connection test; Holds Booz India as Permanent Establishment 

AAR holds Booz India as PE of various overseas Booz Group entities; Various factual aspects highlighted by Revenue support its contention that PE does exist, concludes AAR; Revenue contended that glob...View More