Forum Review: Authority for Advance Rulings

While most of the preliminary tax litigation in India is centred around the ITATs, the Authority for Advance Rulings (AAR) also plays in important role in resolving tax issues before they get a chance to hit proper litigation. It is an independent quasi-judicial body which can give give rulings on taxation queries presented by Non … Continue reading Forum Review: Authority for Advance Rulings

AAR ruling could put foreign hotel owners in a tax bind

The Authority for Advance Ruling has ruled in the case of FRHI Hotels & Resorts that based on the degree of exclusive control, discretion and authority exercised by the non-resident company over operations of an Indian hotel could mean that such a hotel constituted a fixed place permanent establishment for the former and its income from operations … Continue reading AAR ruling could put foreign hotel owners in a tax bind

AAR holds non-compete fee is not taxable under India-UK DTAA

The Authority for Advanced Ruling has held in the case of HM Publishers Holdings Limited that while receipts arising out of a non-compete agreement are taxable as business income under Section 28 (va) of the Income Tax Act, they would not be taxable as per the DTAA between India and UK. Also Read: AAR ruling could … Continue reading AAR holds non-compete fee is not taxable under India-UK DTAA

Income Tax authorities successful in claiming Permanent Establishment status for MasterCard

In a case similar to the European Facebook and Google cases on taxation, the Authority for Advance Rulings upheld the I-T departments contention that a company would be taxable in India if it secures its business in India through a permanent establishment, irrespective of whether people or software are employed to do the job. Read … Continue reading Income Tax authorities successful in claiming Permanent Establishment status for MasterCard