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 Income Tax Appellate Tribunal (ITAT) held that the receipts received by the assessee, a foreign associated enterprise (AE), from HCLT for providing software, engineering, and infrastructure services were not taxable in India. The Assessing Officer (AO) had contended that the nature of these receipts should be considered "fees for technical services (FTS)" under Explanation 2 to Section 9(1)(vii) of the Income Tax Act and taxable under the Act and the India-Singapore DTAA. However, the ITAT agreed with the assessee's contention that HCLT was required to treat the entire sale proceeds received from foreign clients as export turnover under Explanation 2 to Section 10AA by raising a single consolidated invoice. The ITAT distinguished the facts from other cases cited by the Revenue and held that the assessee rendered services to foreign customers outside India, and the services were utilized in their businesses outside India, making the receipts non-taxable. The issue of taxability under DTAAs was left open for determination. The appeal was decided in favor of the assessee.
The Income Tax Appellate Tribunal (ITAT) held that the receipts received by the assessee, a foreign associated enterprise (AE), from HCLT for providing software, engineering, and infrastructure services were not taxable in India. The Assessing Officer (AO) had contended that the nature of these receipts should be considered "fees for technical services (FTS)" under Explanation 2 to Section 9(1)(vii) of the Income Tax Act and taxable under the Act and the India-Singapore DTAA. However, the ITAT agreed with the assessee's contention that HCLT was required to treat the entire sale proceeds received from foreign clients as export turnover under Explanation 2 to Section 10AA by raising a single consolidated invoice. The ITAT distinguished the facts from other cases cited by the Revenue and held that the assessee rendered services to foreign customers outside India, and the services were utilized in their businesses outside India, making the receipts non-taxable. The issue of taxability under DTAAs was left open for determination. The appeal was decided in favor of the assessee.
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