International Tax Ruling


Buy-back providing shareholder exit not reorganisation, Article 13(5) of India-Netherland DTAA inapplicable 

Capital gains arising to a non-resident (a Dutch entity) on transfer of shares held in an Indian Company under a High-Court approved buy-back scheme taxable in India for AY 2006-07, exemption provided...View More

E-learning revenues taxable as 'royalty'; Rejects 'copyrighted article' plea for software license 

AAR holds payment received by applicant (an Ireland co. engaged in providing e-learning courses) from an Indian distributor for sale of products to Indian end-users (permitted to access the e-learning...View More

Higher TP margins insufficient to deny tax holiday absent concession abuse evidence

ITAT holds that fact that assessee had higher operating margins as compared to the comparables chosen in its TP study not valid ground to invoke Sec 10A(7) r.w.s. 80IA(10; ITAT rules on interplay betw...View More

No PE; Subsidiary personnel not rendering services as de-facto employees; Motorola distinguished 

ITAT holds that Article 5(4) of Indo-Swiss DTAA specifically excludes insurance enterprise carrying out reinsurance work from PE definition; Further holds that even in absence of such exclusion, asses...View More

Technology transfer payment, rights not fully alienated, held “Royalty”; DCM Ltd distinguished 

HC upholds ITAT order, lumpsum payment by assessee to a German Co. under the “Technology Transfer and Technical Assistance Agreement” for 5 yrs., is “Royalty", under Article VIIIA of...View More

VSNL's fibre-optic-link payment to Flag Telecom, a capacity sale, not taxable u/s 9 

ITAT holds VSNL's fiber optic link payment of US $ 28.94 million to Flag Telecom (resident of Bermuda, "assessee") as towards "sale of capacity" qualifying as “business income” and not as ...View More

Quashes writ challenging Cyprus notification; No reason to 'disbelieve' Govt. satisfaction 

HC quashes writ challenging blacklisting of Cyprus as notified jurisdiction area u/s 94A of Income Tax Act; Refuses reliance on Cyprus govt. press release, holds no requirement for Court to ordinarily...View More

Brand related agreements, Colourable device; ​​Lifts corporate veil; Receipts taxable ​as royalty

Amounts received by US co. (‘assessee’) from various Indian hotels as reimbursements for undertaking international advertisement and marketing programs for “Marriott” and/or &l...View More

Taxes FTS at 10% u/s 115A(BB) as against US-DTAA 15% rate applying Sec 90(2) 

ITAT directs AO to tax FTS received by non-resident assessee at lower beneficial rate of 10% u/s 115A(BB) as against higher rate of 15% under Article 12 of India-USA DTAA in view of Sec 90(2); Observe...View More

Interconnect charges taxable 'process' royalty, relies on Verizon; Rejects retro TDS argument 

ITAT rules that payments made by Vodafone South Ltd (VSL) to non-resident telecom operators (NTO) towards interconnect usage charges (IUC) and capacity transfer qualifies as ‘process royalty&rsq...View More