Since the taxpayer company was following mercantile system of accounting, the FTS had accrued notwithstanding the non-receipt of the RBI approval.
The AAR took notice of the company’s assertion that the decisions are taken by the board of directors from Mauritius and the control of the affairs of the company lies in Mauritius.
Foreign companies are liable to be taxed for income generated from their Indian subsidiaries, according to an order by AAR, a quasi-judicial body for settling tax disputes.
Snatching a share in a market ruled by the Mallyas, Pernod Ricards and the Chhabrias is not an easy task.But this is what Amit Dahanukar did.
The Delhi bench of ITAT has held that payment received by a foreign university for offering distance educational courses in India is not taxable.
The original target of Rs 5.32 lakh crore was nearly 19% higher than the collection of Rs 4.48 lakh crore in FY11.
The transaction between the Indian company and OTIS Mauritius, according to The AAR, was designed to avoid tax in India.
The General Anti-Avoidance Rules or GAAR which was announced in budget 2012 will enable the government to do this.
The implication of GAAR is that the I-T dept will have powers to deny tax benefit if a transaction was carried out exclusively for the purpose of avoiding tax.
The government may fall short of the revised target for direct tax collection of Rs 5.8 lakh crore for 2011-12 fiscal by at least Rs 50,000 crore going by the latest data on advance tax payments, according to senior income tax officials.
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