Online bond platforms may offer overseas-regulated products and tax-specific bonds subject to disclosures, compliance safeguards and revised complianc...
Corporate guarantee valuation permits actual ascertainable commission while barring retroactive application and extended-period penalties for bona fid...
Proper-officer jurisdiction under UPGST penalty provisions upheld; participation on merits prevents bypassing the statutory appellate remedy through w...
Transitioned CENVAT credit may validly satisfy mandatory pre-deposit requirements for legacy service tax appeals through Electronic Credit Ledger debi...
Building-plan sanction charges require statutory authority; unauthorised fees and GST were quashed, while labour cess must follow prescribed collectio...
Pure-agent exclusion fails where hotel booking facilitators receive third-party services themselves, making entire customer consideration taxable as r...
The Delhi High Court examined whether guarantee charges received by an appellant from its Indian subsidiaries are taxable in India. The Tribunal found that the appellant's payments did not fall under Article 12 of the DTAA as it was not a party to loan agreements with foreign banks. The guarantee charges were deemed as remuneration for providing parent company guarantees, not interest. The income accrued in India as per the Intra Group Agreement terms. The charges were linked to services provided in India for the benefit of subsidiaries. The Court held that the guarantee fees did not qualify as interest u/s Article 12 of the DTAA. The Court ruled against the appellant, stating that the guarantee charges do not fall under the definition of interest. The issue of whether the charges constitute business income u/s Article 7 of the DTAA was left open for future consideration.
The Delhi High Court examined whether guarantee charges received by an appellant from its Indian subsidiaries are taxable in India. The Tribunal found that the appellant's payments did not fall under Article 12 of the DTAA as it was not a party to loan agreements with foreign banks. The guarantee charges were deemed as remuneration for providing parent company guarantees, not interest. The income accrued in India as per the Intra Group Agreement terms. The charges were linked to services provided in India for the benefit of subsidiaries. The Court held that the guarantee fees did not qualify as interest u/s Article 12 of the DTAA. The Court ruled against the appellant, stating that the guarantee charges do not fall under the definition of interest. The issue of whether the charges constitute business income u/s Article 7 of the DTAA was left open for future consideration.
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