Classification of industrial and consultancy service companies alters tax apportionment and preferential rate treatment under section 109. Amendment to section 109 inserts definitions of industrial company and consultancy service company (linked to the meaning in section 80MM(2)) and substitutes sub clauses to prescribe differing rate treatments for industrial and consultancy service companies and for investment companies. For Indian companies whose gross total income partly arises from technical know how provision, ship construction, manufacture/processing, mining, or power generation/distribution, the provision requires apportionment and applies the Chapter as if each part were the company's separate gross total income, with dividends and distributable income similarly apportioned for sections 104 and 109.
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Provisions expressly mentioned in the judgment/order text.
Classification of industrial and consultancy service companies alters tax apportionment and preferential rate treatment under section 109.
Amendment to section 109 inserts definitions of industrial company and consultancy service company (linked to the meaning in section 80MM(2)) and substitutes sub clauses to prescribe differing rate treatments for industrial and consultancy service companies and for investment companies. For Indian companies whose gross total income partly arises from technical know how provision, ship construction, manufacture/processing, mining, or power generation/distribution, the provision requires apportionment and applies the Chapter as if each part were the company's separate gross total income, with dividends and distributable income similarly apportioned for sections 104 and 109.
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