https://www.taxtmi.com/caselaws?id=290835 A note on a foreign bank branch's Indian tax position under the India-Japan DTAA explains that expatriate salary costs borne by head office for staff working exclusively in India, intra-entity interest flows between head office, overseas branches and the Indian branch, and deferred bank guarantee commission were treated in line with earlier treaty-based rulings, while section 115JB was considered inapplicable to the foreign banking company's statutory accounts framework. It also notes that external commercial borrowing interest was not to be taxed beyond the Indian branch's actual role and that a transfer pricing adjustment on guarantee commission was rejected because the transaction had already been benchmarked on an aggregated basis and could not be carved out for a separate CUP analysis. The higher branch tax rate issue remained adverse to the assessee. en-us Thu, 21 May 2020 00:00:00 +0530 Wed, 13 Nov 2024 13:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290835 A note on a foreign bank branch's Indian tax position under the India-Japan DTAA explains that expatriate salary costs borne by head office for staff working exclusively in India, intra-entity interest flows between head office, overseas branches and the Indian branch, and deferred bank guarantee commission were treated in line with earlier treaty-based rulings, while section 115JB was considered inapplicable to the foreign banking company's statutory accounts framework. It also notes that external commercial borrowing interest was not to be taxed beyond the Indian branch's actual role and that a transfer pricing adjustment on guarantee commission was rejected because the transaction had already been benchmarked on an aggregated basis and could not be carved out for a separate CUP analysis. The higher branch tax rate issue remained adverse to the assessee. Case-Laws Income Tax Thu, 21 May 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290835