https://www.taxtmi.com/caselaws?id=310390 A sales tax subsidy granted under a State incentive scheme for industrial development was treated as a capital receipt because its character depended on the purpose of the subsidy, not merely the measure used to quantify it. The subsidy was also not reduced from the actual cost of assets under Explanation 10 to section 43(1), as it did not meet the cost of any specific asset acquired with the assessee's own funds. Commission paid to non-resident US agents was not taxable in India because the agents performed ordinary sales procurement functions and did not provide managerial, technical or consultancy services, or any make-available element under the treaty; consequently, disallowance under section 40(a)(i) was not attracted. en-us Thu, 06 Apr 2023 00:00:00 +0530 Sat, 21 Oct 2023 07:00:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310390 A sales tax subsidy granted under a State incentive scheme for industrial development was treated as a capital receipt because its character depended on the purpose of the subsidy, not merely the measure used to quantify it. The subsidy was also not reduced from the actual cost of assets under Explanation 10 to section 43(1), as it did not meet the cost of any specific asset acquired with the assessee's own funds. Commission paid to non-resident US agents was not taxable in India because the agents performed ordinary sales procurement functions and did not provide managerial, technical or consultancy services, or any make-available element under the treaty; consequently, disallowance under section 40(a)(i) was not attracted. Case-Laws Income Tax Thu, 06 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310390