Alstom Transport SA v DIT A.A.R. No. 958 of 2010 dated 7th June 2012 Facts of the case The applicant along with three other companies, entered into a Consortium Agreement for the purpose executing a contract: “to implement the design, manufacture, supply, installation, testing and commissioning of signaling/ train-control and communication system”. The consortium was jointly and severally responsible for the work tendered. The Applicant contended that:
International Taxation
DDIT v Toyo Engineering Corpn [2012] 22 taxmann.com 18 (MUM. – ITAT) The assessee was an engineering company incorporated in and tax resident of Japan. During the year it was, inter alia engaged in executing certain Project Management Contracts with MRPL, HPL and CFCL. On the perusal of these services, it can be seen that the assessee received consideration towards project management contracts on an overall basis towards (i) Project Management Services ; (ii) Local engineering supervision ; (iii) Construction management and supervision services and ; (iv) Start-up assistance services.
Project Management Charges are FTS u/s 9(1)(vii) and detailed explanation on business profits under Article ...
B4U International Holdings Ltd. v DCIT I.T.A.No. 3326/Mum/2006 (Mum ITAT) Finance Act, 2012 introduced a retrospective amendment in the definition of the term ‘royalty’ by inserting Explanation 4 to 6 in s. 9(1)(vi) with retrospective effect from 1.6.1976. The same reads as under:
Retrospective amendment in “Royalty” u/s 9 of the I.T. Act made redundant in view of ...
CIT v Havells India Ltd (Del HC) [ITA No. 55/2012 & ITA No. 57/2012] The assessee, an Indian company, paid Rs. 14.71 lakhs to a US company for ‘KEMA’ certification which was necessary to enable it to sell its products in the European markets. The assessee claimed that though the said amount was ‘fees for technical services’ u/s 9(1)(vii), it was paid “for the purpose of earning income from a source outside India” (i.e. the exports) and so it was not taxable in India u/s 9(1)(vii)(b). The AO & CIT (A) rejected the claim though the Tribunal upheld it. On appeal by the department, HELD reversing the Tribunal:
S. 9(i)(viib): Export sales is not a “source of income outside India”
SEPCO III Electric Power Construction Corporation, In re (2012) 342 ITR 313 (AAR) The applicant was a Chinese company engaged in the business of supplying equipment for electric power projects. An Indian company awarded contract to the applicant for offshore supply. The scope of the work required the applicant to carry out design, engineering, procuring and transportation of the equipment for a thermal power plant to the port of loading. The applicant claimed that: