Karnataka HC: Tax on services by non-resident provider pre-2006 ruled out. Amendment allows taxation abroad.

The Karnataka HC ruled that prior to 18-4-2006, service receiver should not have been taxed for services by a non-resident provider. Amendment to Section 66A of Finance Act, 1944 allowed taxation when provider is abroad. Appeal dismissed in favor of assessee.

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The Karnataka High Court ruled that prior to 18-4-2006, service receiver should not have been taxed for services provided by a non-resident service provider. The amendment to Section 66A of the Finance Act, 1944 allowed for taxation of the service receiver when the service provider is outside the country. The appeal was dismissed in favor of the assessee.

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