AAR: "Hazardous to rule" on merits without basic contractual agreements, Declines Dishnet ruling 

AAR admitted application even though similar / almost identical application pending before them in applicant's own case; However, declined to rule on questions formulated due to non-production of the basic

Aug 29,2012

AAR: Satyam's class action suit settlement payment has India 'source', taxable as IOS

Settlement amounts payable under US class action suit by Indian co and Indian and foreign arms of auditor, constitute Settlement Fund’s income; Title passed to Settlement Fund in US, once

Aug 29,2012

AAR: Recalls favourable ruling on offshore supplies due to mistake apparent from record 

AAR calls back its earlier ruling in CTCI Overseas Corporation case treating offshore supplies as not taxable; Earlier ruling did not consider impact of its finding that consortium was assessable

Aug 29,2012

AAR: Transmission/wheeling charges attract TDS; Departs from precedents

Transmission / wheeling charges involve rendering of technical services involving sophisticated instruments and technical persons and attract TDS; AAR departs from earlier ruling and differs with Madras HC; SLDC charges

Aug 29,2012

AAR: Partnership & partners not eligible for Swiss treaty relief, legal services taxable

Legal fees received by Swiss partnership taxable in India despite major part of professional services being rendered in Switzerland; Firm, not being taxable entity in Switzerland, not a ‘person,’ and

Aug 29,2012

AAR: Invokes "public interest" to reject Mahindra - BT application; Share arrangement flouted SEBI guidelines

Rejects Mahindra–BT Investment (Mauritius)’s AAR application, citing ‘circumvention’ of SEBI Guidelines; Options in Tech Mahindra issued to AT&T pre-IPO were against SEBI Guidelines; Sharply rebukes Mahindra BT counsel Soli Dastur's

Aug 29,2012

AAR: Infosys gets Australia DTAA relief for sub-contracting payments to overseas subsidiary 

Payment to Infosys Australia pursuant to sub-contract arrangement for IT contracts not taxable; Source of income earned by Australian subsidiary is in India, as Infosys India the main contractor; Services

Aug 28,2012

AAR: Follows precedents, Exemption u/s 47(iv) not available, buyback not taxable, TP applicable 

Mauritian resident not taxable on gains on buyback of shares by Indian company; Mere fact that investment made through Mauritius not sufficient to hold the transaction as tax avoidance scheme;

Aug 22,2012

AAR: Salary recharge of seconded employees not reimbursement, taxable in India

Salary recharge to Indian company for secondment of employees by parent not in the nature of reimbursement; Foreign parent is an employer of seconded employees; 'Right to terminate employment' a

Aug 22,2012

AAR: No capital gain to Credit Suisse on merger sanctioned by Swiss Law

Swiss applicant had 100% subsidiary in India and intended to merge with Swiss parent; Vesting of shares of Indian subsidiary in parent company after amalgamation, not chargeable to capital gains

Aug 22,2012