International Tax Ruling


Employee secondment creates PE, but salary expense deductible; Centrica HC ruling inapplicable 

Employee secondment by US co. (‘assessee’) to its India subsidiary creates service PE, however employee salary expense a cost against salary recharge received by assessee from Indian subsi...View More

Admonishes AO on non-recording of DRP’s direction date, a mandatory requirement; Quashes belated order 

ITAT quashes AO’s order giving effect to DRP’s directions, as barred by limitation period u/s 144C(13); DRP order was dated November 29, 2013, assessee had received the same on December 5,...View More

Allows relief under India-Sweden MFN clause, applies restrictive Portuguese FTS definition 

ITAT rules that service fees received by assessee (Swedish resident) from its India subsidiaries not taxable as FTS in view of Protocol to India-Sweden DTAA; Holds assessee entitled to claim benefit o...View More

Remittance to Danish co. for Microsoft software-licence acquisition, a royalty, absent beneficial ownership 

ITAT holds TDS applicable on payment to Danish group concern for acquiring Microsoft’s software licence, being 'royalty'; Overturning CIT(A)’s order that assessee acquired a readymade off ...View More

Right to use smart card source code, a copyrighted article, not royalty 

ITAT holds assessee not liable to Sec 195 TDS on payments made to foreign entities for complete source code / software in respect of smart cards operating systems for transport application, conforming...View More

Consideration for hiring out dredgers, not “royalty”, distinguishes Poompuhar ruling 

HC rules that amount received by assessee (Netherlands Company) for hiring out dredgers to Indian sister concern for use in India ports not “Royalty” within meaning of India-Netherlands DT...View More

LO involved in marketing goods, not mere communication channel, constitutes Indian-PE 

HC confirms Tribunal’s order that assessee’s (US company) Indian liaison office (LO) constituted a permanent establishment (PE), making assessee liable to tax in India on its business inco...View More

Holds consideration for plant know-how in connection with plant erection, not 'royalty' 

ITAT rules on taxability of payments by assessee to Israel company, pursuant to entering into Technology License agreement; In view of Himachal Pradesh HC ruling in Maggronic Devices Pvt. Ltd., holds ...View More

Equipment installation/commissioning covered by "assembly" exception u/s 9(1)(vii), not taxable FTS 

ITAT holds payment by Indian newspaper publishing company (‘assessee’) to Swiss Co. (‘vendor company’) for installation / commissioning of complex ‘mail room equipment&rs...View More

Holds pre-clinical research payments as FTS; Notes contract vs independent research distinction 

ITAT upholds CIT(A)’s order treating payments made by a pharmaceutical research foundation to UK and Netherlands companies for conducting pre-clinical research studies as ‘fees for technic...View More