Writ petitions challenged the 4% withholding tax rate u/s 195 on ...

Foreign companies face tax uncertainty as court strikes down 4% withholding rate for income attribution.

Case Laws Income Tax

September 20, 2024

Writ petitions challenged the 4% withholding tax rate u/s 195 on receipts asserted as business income u/s 9(1)(i), despite the petitioner having withheld tax at 1.5%. The Court noted the profit attribution rate of 26% was not disputed and that a 1.04% withholding rate would correspond to this rate. As the withholding rate exceeding 1.04% was not seriously questioned, the Court found itself unable to sustain the 4% rate. The withholding tax rate for other years would be decided independently. Since the orders were limited to adjudication u/s 197, all rights and contentions on merits are kept open for regular assessment proceedings.

View Source

← Previous Next →

Writ petitions challenged the 4% withholding tax rate u/s 195 on ...

Foreign companies face tax uncertainty as court strikes down 4% withholding rate for income attribution.

Case Laws Income Tax

September 20, 2024

You may also like:

Orders/certificates u/s 197 - rate of withholding tax - he petitioner, who is a non-resident and does not have a PE in India, claims that the subject income is “business...

Income accrued in India - permanent establishment (PE) - Withholding of tax in India - vessel engaged in seismic survey at high sea - The sum paid by the applicant to...

The case before the Calcutta High Court involved the classification of a company for taxation purposes. The court determined that the appellant company did not qualify...

The assessee, a Limited Liability Company (LLC) under US tax laws, was denied treaty benefits under the India-USA Double Taxation Avoidance Agreement (DTAA) by the...

Rates of Tax on Goods - Schedule 4 - IGST @ 28% - CGST @ 14% - SGST / UTGST @ 14% - GST

Income Tax: The proposed amendment to section 198 aims to widen the tax base and address tax avoidance by deeming all sums deducted as tax in India and abroad, for which...

Refund of excess Dividend Distribution Tax - additional income tax payable by the domestic company shall be at the rate mentioned in section 115-O of the Act and not at...

Rate of value added tax (VAT) - samosa - whether the rate of tax on Samosa should be 8% or 5%? - samosas are to be taxed at the rate of 8% for the first six months and,...

Proposed amendment enables recovery of existing liabilities under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 from seized assets...

Rate of tax on Interest Income - how the tax rate of non resident companies in their respective countries will be applied on this interest income earned by the assessee...

Charging interest u/s. 234B(3) / (4) - The section 234B(4) states that if there is any increase or decrease in the income, correspondingly interest shall be increased or...

Verification Certificate - Certificate under provisions of rule 114(4) of Income Tax Rules, 1962

Insertion of new Chapter XII-BC- Foreign company said to be resident in India - where a foreign company is said to be resident in any previous year and such foreign...

Rate of tax - the tax on the sale of coal within the said limit was @ 4 %. In view of Section 8 (2) (a) of the CST Act, sale of coal made by the revisionist without...

Insertion of new section 270A - Penalty for underreporting and misreporting of income. - tax payable on under-reported income shall be calculated as if such...

Quick Updates: