Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
AAR held that the R&D activity performed by the applicant for a Government research institution under a grant-in-aid arrangement constitutes a "supply" under Section 7 of the CGST Act, notwithstanding absence of IP transfer, because the activity was performed for consideration. Although Notification No. 08/2024 inserts an exemption for R&D services funded by grants to specified notified institutions, the applicant failed to establish notification under clauses (ii)/(iii) of s.35(1) of the Income-tax Act; consequently the services do not fall within Entry Nos. 3 or 3A of Notification No. 12/2017. The partial manufacture of samples does not engage Articles 243G/243W functions. The supply is taxable and the applicant is liable to discharge GST at the applicable rate.
AAR held that the R&D activity performed by the applicant for a Government research institution under a grant-in-aid arrangement constitutes a "supply" under Section 7 of the CGST Act, notwithstanding absence of IP transfer, because the activity was performed for consideration. Although Notification No. 08/2024 inserts an exemption for R&D services funded by grants to specified notified institutions, the applicant failed to establish notification under clauses (ii)/(iii) of s.35(1) of the Income-tax Act; consequently the services do not fall within Entry Nos. 3 or 3A of Notification No. 12/2017. The partial manufacture of samples does not engage Articles 243G/243W functions. The supply is taxable and the applicant is liable to discharge GST at the applicable rate.
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