AAR: Indian Subsidiary exclusively carrying on group's business creates PE

100% subsidiary created for the purpose of attending to the business of the group in India creates PE for Aramex Group under India-Singapore DTAA; Indian subsidiary a mere "camouflage" to

Jun 08,2012

AAR: Vodafone overrules IHI, reiterates AAR; Offshore supply taxable, Consortium an AoP

3 judge SC ruling in Vodafone overrules 2 judge ruling in Ishikawajima – Harima Heavy Industries Limited; Composite contract for installation and commissioning of project in India cannot be dissected;

Jun 08,2012

AAR: Part consideration for turbine overhauling services taxable under India-US DTAA 

Consideration for mere inspection and boroscoping of machinery in India, not taxable as 'fees for included services' (FIS) under Indo-US DTAA, as no knowledge 'made available'; Consideration for granting non-exclusive,

May 31,2012

AAR: R&D cost allocation taxable as royalty, allocation key has no meaning, rules AAR

Cost allocation of common Research & Development expenses received by German Group company from Indian affiliate taxable as royalty; Allocation key has no meaning as only group companies using particular research contributed

May 19,2012

AAR: Subscription for social media monitoring services taxable as royalty

Subscription paid for social media monitoring services for market intelligence taxable as royalty u/s 9(1)(vi) and Article 12 of India-Singapore DTAA; Services amounted to imparting of information concerning industrial and

May 09,2012

AAR: Rejects dissecting approach, says SC ruling in Vodafone prevails over IHI

SC ruling in Ishikawajima Harima Industries (IHI) not binding in view of three judges bench ruling in Vodafone International BV; IHI ruling adopted a ‘dissecting’ approach, while Vodafone ruling prescribes

May 08,2012

AAR: Holds Managerial services taxable, questions "confusing process" of treaty interpretation

MFN clause under India-France DTAA applies to rate of tax as well scope of taxation; ‘Make available’ concept applicable only to technical and consultancy services and not to ‘managerial services’;

Apr 17,2012

AAR: Lifts corporate veil to tax sale of convertible debentures, refuses Mauritius treaty benefit 

Sale of Compulsory Convertible Debentures by Mauritius company taxable in India as “interest” under Sec 2(28A) of Income Tax Act and Article 11 of India-Mauritius DTAA; CCD creates or recognizes

Apr 04,2012

AAR: AAR denies capital gains benefit to Mauritius entity on share buy-back, terms it 'tax avoidance' 

Share buy-back a scheme for avoidance of Dividend Distribution Tax; Capital gains exemption under India-Mauritius DTAA for share buy-back not available to Mauritian Shareholder since held to be a 'colourable

Apr 04,2012

AAR: Inspection, testing services not 'made available' technical knowledge, not taxable as FTS under DTAA 

Under DTAA containing ‘make available clause’, income from Inspection, Verification, Testing and Certification Services not taxable as FTS; Under DTAA containing MFN clause but not ‘make available’ clause, applicants entitled

Mar 30,2012