Supervisory permanent establishment requires project-wise duration and qualifying construction nexus; offshore supplies and salary reimbursements rema...
Transfer-pricing comparability permits fresh objections and filters where software service comparables are functionally unsuitable for arm's-length pr...
Territorial rendering requirement excludes China-based management and consultancy services from fees for technical services under the India-China DTAA...
The Appellate Tribunal addressed various Transfer Pricing (TP) issues. It directed the AO/TPO to consider only operating profit/cost for TP adjustment in IT enabled Services transactions. For interest on trade receivables, it mandated using market determined rates. Regarding TDS u/s 195, payments to a Thailand entity were not classified as FTS due to absence of FTS clause in India-Thailand DTAA. The AO was directed to delete the addition u/s 40(a)(ia). However, payments to a German entity were deemed FTS under India-Germany DTAA, upholding the addition u/s 40(a)(i). The appeal was partly allowed.
The Appellate Tribunal addressed various Transfer Pricing (TP) issues. It directed the AO/TPO to consider only operating profit/cost for TP adjustment in IT enabled Services transactions. For interest on trade receivables, it mandated using market determined rates. Regarding TDS u/s 195, payments to a Thailand entity were not classified as FTS due to absence of FTS clause in India-Thailand DTAA. The AO was directed to delete the addition u/s 40(a)(ia). However, payments to a German entity were deemed FTS under India-Germany DTAA, upholding the addition u/s 40(a)(i). The appeal was partly allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4879 
