The ITAT held that the assessee, a Luxembourg company, is ...

Luxembourg company entitled to India tax treaty benefits due to commercial substance.

January 11, 2025

Case Laws Income Tax AT

The ITAT held that the assessee, a Luxembourg company, is entitled to India-Luxembourg tax treaty benefits. Despite being a subsidiary of Cayman Islands entities, the assessee proved its commercial substance in Luxembourg through valid tax residency certificate, filing tax returns, incurring operational expenses, and making investments beyond India. The revenue failed to establish the assessee was a mere conduit. Applying the Principal Purpose Test under MLI, obtaining treaty benefits cannot be considered the principal purpose when the assessee demonstrated economic activities and standalone existence. The ITAT directed granting treaty benefits to the assessee.

View Source

← Previous Next →

The ITAT held that the assessee, a Luxembourg company, is ...

Luxembourg company entitled to India tax treaty benefits due to commercial substance.

January 11, 2025

Case Laws Income Tax AT

You may also like:

Assessee employed by Indian entity but sent on long-term international assignment to Singapore. Salary received in India for administrative reasons, but employment...

Benefits of India UAE Double Taxation Avoidance Agreement - the assessee company is a resident of the UAE, in terms of requirements of article 4(1)(b) of the Indo-UAE...

Denial of tax treaty benefit due to lack of commercial substance in Singapore - Benefit of DTAA - In any event, the ld. AO in all fairness ought to have accepted the...

Taxability of Income in India - international taxation, permanent establishment (PE), and treaty benefits under the India-UK Double Taxation Avoidance Agreement (DTAA)....

Tax residency certificate issued by Singaporean authorities is statutory evidence of the company's residency, and the burden lies on the Revenue authorities to establish...

Assessee company paid Dividend Distribution Tax (DDT) on dividends distributed to its holding company, a tax resident of Mauritius, at higher rates under the Income Tax...

Income deemed to accrue or arise in India - taxation of entire revenue received by the Appellant from provision of legal services on Indian engagements - Fees for...

Taxability of capital gain arising on sale of shares under the treaty provisions - AO and DRP have rejected assessee’s claim by holding that assessee being a mere paper...

Taxing the interest on income tax refund received u/s 244A - Non-Resident (Foreign Company) - since the assessee is benefitted with the protocol to the India-Netherland...

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...

Entitlement to benefits of treaty exemption - India-Singapore DTAA - Application of Section 172 - Taxation of shipping companies - The tribunal concluded that the...

Income accrued in India - For the purpose of applying Article 13(5) of the India-Belgium tax treaty two fold conditions are required to be cumulatively satisfied viz....

Legal dispute concerning the taxability of capital gains arising from the sale of shares by a Mauritian entity to an Indian company. The central issues revolve around...

Income accrued in India - Permanent Establishment (PE) in India under Article–5 of the India–Mauritius Tax Treaty - The two companies were not exclusively working for...

Rate of TDS - Non-availability of PAN - Benefit of treaty - in case of payments made to non-residents, the assessee was entitled to deduct taxes at source at the rates...

Quick Updates: