Transfer-pricing treatment of ITeS margins excludes pass-through tax recoveries and separate delayed-receivables interest after working-capital adjust...
Capacity-utilisation adjustments under TNMM can neutralise substantiated COVID-related idle costs where underutilisation materially affects profitabil...
TNMM functional comparability requires excluding rice manufacturers from a pure Basmati rice trader's benchmark and recognising operating export recei...
Working-capital adjustment subsumes delayed-receivable effects in TNMM benchmarking of captive software-development services, avoiding separate notion...
Transfer-pricing comparability requires exclusion of financially illogical super-profit comparables and correction of unsupported annual-report and ma...
Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
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Taxability of employee cost reimbursements as Fee for Technical Services (FTS) under the India-Japan tax treaty. The assessee, a Japanese company, seconded employees (expats) to its Indian associated enterprises (AEs). The Revenue contended that the expats rendered managerial/technical services, and the reimbursements received were taxable as FTS. However, the assessee argued that the expats worked as employees of the Indian AEs, and the payments were pure salary reimbursements. The Tribunal examined the terms of the secondment agreements and memorandums of understanding, which indicated that the expats worked under the direct control and supervision of the Indian AEs. The Tribunal held that no evidence was provided to substantiate the Revenue's claim of managerial/consultancy services rendered. The reimbursements were mere cross-charges of salary costs, taxable as salary income in the hands of the expat employees, not as FTS in the hands of the assessee. Consequently, the addition of FTS was deleted.
Taxability of employee cost reimbursements as Fee for Technical Services (FTS) under the India-Japan tax treaty. The assessee, a Japanese company, seconded employees (expats) to its Indian associated enterprises (AEs). The Revenue contended that the expats rendered managerial/technical services, and the reimbursements received were taxable as FTS. However, the assessee argued that the expats worked as employees of the Indian AEs, and the payments were pure salary reimbursements. The Tribunal examined the terms of the secondment agreements and memorandums of understanding, which indicated that the expats worked under the direct control and supervision of the Indian AEs. The Tribunal held that no evidence was provided to substantiate the Revenue's claim of managerial/consultancy services rendered. The reimbursements were mere cross-charges of salary costs, taxable as salary income in the hands of the expat employees, not as FTS in the hands of the assessee. Consequently, the addition of FTS was deleted.
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