International Tax

HC: Earlier year's loss adjusted fully against reserve cannot be reduced under MAT

‘Book Profits’ under MAT cannot be reduced by depreciation & loss of earlier year fully adjusted against revenue reserves: Madras HC  

Sep 08,2011

ITAT: CA certificate not conclusive to determine non-resident taxability

A CA certificate for TDS on payment to non residents not conclusive to determine taxability

Sep 06,2011

ITAT: Payment for Oracle database sub-licensing taxable as royalty

Payment for license to use ‘shrink wrap computer software’ constitutes 'royalty'

Sep 05,2011

ITAT: Section 51 applicable only in case of aborted transactions

Sec 51 providing for reduction of ‘advance/earnest money’ from 'cost of capital asset’, applicable only in case of forfeited advance for ‘aborted transactions’

Sep 02,2011

ITAT: Accounting losses pre-HC restructuring can be reduced for MAT

Debit balance of P&L adjusted against share premium & revaluation reserve as per High Court restructuring scheme, can be reduced for MAT purposes as brought forward book loss; AO to

Aug 31,2011

ITAT: No disallowance u/s 40A(9) if staff welfare trust contribution under Govt. directives

Contributions to staff welfare trust created under State Govt. directives covered under exceptions to Sec 40A(9); Claim for deduction during assessment allowed & SC decision in Goetz distinguished

Aug 31,2011

ITAT: Project Office executing EPC contract in India taxable as fixed place PE

'Project office' involved in co-ordination and execution of turnkey project constituted a fixed place PE in India; Revenue for offshore activities attributable to PE taxable in India

Aug 31,2011

ITAT: Loss on unsettled interest rate swap contracts deductible

Anticipated loss on unsettled interest rate swap contracts deductible; Accounting principle of 'prudence' binding as per Sec 145(2)

Aug 29,2011

HC: Period of limitation not applicable for TDS order passed u/s 201

Period of limitation not applicable for TDS orders passed u/s 201 –

Aug 29,2011

ITAT: Software payment not taxable under treaty; Microsoft ruling not binding precedent

Payment of software not taxable as ‘royalty’ under India-Israel treaty; Motorola SB ruling followed; Delhi ITAT ruling in Microsoft case not binding precedent: Mumbai ITAT 

Aug 26,2011