Consortium not an AOP where members have separate work, risk and profits, clarifying tax treatment. A consortium for EPC/Turnkey contracts is not to be treated as an AOP if each member independently executes and bears risk for its demarcated scope of work, incurs expenditure only for that scope, earns profits or bears losses based on its performance, retains control of men and materials for its work, and common management is limited to administrative inter-se coordination; sharing of contract price at gross level for billing convenience does not alter this. The circular excludes cases involving Associated Enterprises, where the Assessing Officer will decide on AOP status.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Consortium not an AOP where members have separate work, risk and profits, clarifying tax treatment.
A consortium for EPC/Turnkey contracts is not to be treated as an AOP if each member independently executes and bears risk for its demarcated scope of work, incurs expenditure only for that scope, earns profits or bears losses based on its performance, retains control of men and materials for its work, and common management is limited to administrative inter-se coordination; sharing of contract price at gross level for billing convenience does not alter this. The circular excludes cases involving Associated Enterprises, where the Assessing Officer will decide on AOP status.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
