AAR: Transfer of tenancy right results in alienation of immovable property; Cap gains taxable under DTAA

Gains received by Dutch resident on sale of shares in Indian Company holding immovable property taxable under Article 13.4 of India-Netherlands DTAA; Transfer of tenancy rights in property results in

Mar 28,2012

AAR: Relies on SC's "Look at" approach, holds consortium bidding for turnkey contract taxable as AoP 

Consortium formed by applicant with another non-resident, for bidding for a turnkey contract, liable to be taxed as Association of Persons (AoP); Internal division of responsibility by Consortium members not to

Mar 22,2012

AAR: Income from inspection, testing services taxable as FTS under IT Act 

Consideration received by HongKong resident for providing Inspection, Verification, Testing and Certification (IVTC) Services to Indian customers, taxable as FTS u/s 9(1)(vii); Services held to be 'customized services' and not

Mar 22,2012

AAR: Secondment of managerial staff creates Service PE for foreign company 

Secondment of employees creates Service PE for foreign company; SC ruling in Morgan Stanley relied on; Salary reimbursement to foreign company liable to TDS u/s 195 and does not amount

Mar 20,2012

AAR: AAR denies Sec 47 (iv) exemption on capital gains from share buy-back

Share buyback by Indian subsidiary from Foreign parent company not exempt u/s 47(iv); Shares held by nominees cannot be considered as shared held by Foreign parent; Sec 46A being special

Mar 20,2012

AAR: AAR allows interest income exemption to Swedish resident applying MFN clause, follows Poonawalla ruling

Interest income of Swedish resident on loan guaranteed by a specified Swedish authority covered under exemption provided in Article 11.3 of India-Sweden tax treaty in view of Most Favoured Nation

Feb 29,2012

AAR: Consideration for software sold through independent Indian reseller, ‘royalty’ in hands of non-resident 

Payments received by non-resident for sale of software application to end users / customers, through an independent reseller in India, taxable as ‘royalty’ under Article 12 of Indo-Japan DTAA; AAR

Feb 29,2012

AAR: Export commission to non-resident agent taxable; TDS u/s 195 applicable

Export commission paid to non-resident agent taxable u/s Sec 5(2)(b) read with Sec 9(1)(i); Right to receive commission accrued in India as the export order was executed in India; Agent

Feb 24,2012

AAR: ‘Preparatory activities’ to be included for determining existence of PE under Article 5(5) 

Payment under a composite contract of installation work, could be segregated into mobilization segment and other segments (on facts); Composite contract providing a separate consideration for different activities and jobs,

Feb 17,2012

AAR: Follows Karnataka HC, rules income from Indian distributor for sale of software products taxable as 'royalty'

Payment received from Indian distributor under Software Distribution agreement taxable as Royalty under Sec 9(1)(vi) of the Act as well as Article 12 of India-Australia DTAA; Sale/license to use software entails transfer

Feb 15,2012