Tax Gyan

Saturday International Tax Gyan!! (SITG-171) #taxinpic #taxmadeeasy Transfer of any right cannot be covered under the definition of Royalty. To be considered as royalty it should fall within the parameter of specific definition as per DTAA.

Saturday International Tax Gyan!! (SITG-170) #taxinpic #taxmadeeasy Providing drawing and design for a specific project does not itself involve transfer of know-how. Hence, not covered under FIS (fees for included service) as per DTAA and not liable for tax in India. Michael Graves Design Group Inc. Vs. DCIT (IT)

Saturday International Tax Gyan!! (SITG-169) #taxinpic #taxmadeeasy Income covered but not taxable as per specific provision of DTAA, cannot be brought to tax under residuary provisions of other source income  as per DTAA or as per act GE Precision Healthcare LLC v. ACIT (IT)

Saturday International Tax Gyan!! (SITG-168) #taxinpic #taxmadeeasy Merely because installation at both sites was done by the same contractors, the project cannot be treated as a single project

Saturday International Tax Gyan!! (SITG-167) #taxinpic #taxmadeeasy Lease payment for an equipment which is not received cannot be covered under the definition of Royalty as per treaty

Saturday International Tax Gyan!! (SITG-166) #taxinpic #taxmadeeasy Section 115A (Tax on dividends, royalty and technical service fees in the case of foreign companies)

Saturday International Tax Gyan!! (SITG-165) #taxinpic #taxmadeeasy The income received from transactions where the inter-connectivity services are being provided by a foreign company (NTO) to an Indian company for seamless communication cannot be taxed in India.

Saturday International Tax Gyan!! (SITG- 164) #taxmadeeasy #taxinpic Fees for providing data base access without any technical assistance is not considered as Technical service but the business income

Saturday International Tax Gyan!! (SITG- 163) #taxmadeeasy #taxinpic The assessee who is a foreign resident can not be asked to explain the assets located outside of India and the income earned by such a person cannot be brought to tax and that too on the basis of general information from the foreign authorities

Saturday International Tax Gyan!! (SITG- 162) #taxmadeeasy #taxinpic Capital Gain covered under Article 13(4) of DTAA, earned in India by SIngapore Resident can not be taxed in India if assessee offers it’s income to tax in Singapore irrespective of whether income is repatriated or not