Important Rulings on Charge of income tax arising out of Certain Transactions and deduction of TDS thereon

1

Income Tax - 2008 - TMI - 4678 - AUTHORITY FOR ADVANCE RULINGS

Taxability of payment made to BTA (non-resident company) who provides lease circuit service to the resident company - Since BTA does not have any permanent establishment - the amount paid to BTA is not taxable and therefore no TDS is required to be deducted. Further the amount paid to BTA can not be treated as Royalty within the meaning of Article 12 of DTAA with Singapore.

2

Income Tax - 2008 - TMI - 4677 - AUTHORITY FOR ADVANCE RULINGS

Indian subsidiary company of applicant (a Singapore company) refers certain international clients to its parent company in connection with acquisition, sales and dealings in real estate and other services such as advisory & research facilities management, project management etc. in the field of real estate in lieu of referral fees. Held that such referral fees is not taxable in India. Therefore no TDS is liable to be deducted in India. - no business connection in India.

3

Income Tax - 2008 - TMI - 4676 - AUTHORITY FOR ADVANCE RULINGS

The income arising from the transfer of its right, title and interest in and to the trade-marks is taxable in India under the Income-tax Act, 1961. 'Independent valuation report' obtained by the applicant may be accepted by the department if it is found true and correct on examination.