Working-capital adjustment determines whether software-services transfer-pricing margins fall within the statutory tolerance range, eliminating any ad...
Permanent establishment deductions upheld for expatriate salaries, direct costs and trading losses, while head-office costs require fresh classificati...
Data transmission equipment classification under CTSH 8517 62 remains distinct from residual classification, with exemption evidence requiring scrutin...
TDS u/s 195 - payment received for interconnect usage charges - transaction with non-treaty country - The assessee contested the taxability of these payments as "royalty" and argued for the consideration of DTAA provisions. The Tribunal following the decision of the High Court's judgment, clarified that DTAA can indeed be considered in such proceedings and that amendments to the Income Tax Act do not automatically amend DTAA provisions. The ITAT further held that payments made to non-resident telecom operators for interconnect services are not taxable as royalty. Additionally, it affirmed that Income Tax Authorities lack jurisdiction to tax income arising from extraterritorial sources.
TDS u/s 195 - payment received for interconnect usage charges - transaction with non-treaty country - The assessee contested the taxability of these payments as "royalty" and argued for the consideration of DTAA provisions. The Tribunal following the decision of the High Court's judgment, clarified that DTAA can indeed be considered in such proceedings and that amendments to the Income Tax Act do not automatically amend DTAA provisions. The ITAT further held that payments made to non-resident telecom operators for interconnect services are not taxable as royalty. Additionally, it affirmed that Income Tax Authorities lack jurisdiction to tax income arising from extraterritorial sources.
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