TaxTMI 
TaxTMI 
Clarification regarding taxability of consortium members
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....larification regarding taxability of consortium members <br>News and Press Release<br>Dated:- 8-3-2016<br><BR>Taxation of consortium of contractors formed to implement Engineering, Procurement and Con....
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....struction (EPC) contracts/turn key projects has been a subject matter of dispute between Income-tax Department and the consortium. This has been particularly so in cases where each member of the conso....
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....rtium has a clear and district role in scope of work, responsibilities and liability of the consortium even though each member is jointly and severally liable to the contractee. To bring about consis....
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....tency in approach while handling cases of consortium, the Central Board of Direct taxes has issued Circular No. 7/2016 clarifying the attributes of a consortium arrangement which may not be treated as....
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.... an Association of Persons(AOP). The list of attributes is not exhaustive. There may be additional factors which may justify not treating a consortium as an AOP depending on specific facts and circums....
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....tances. The Circular will not apply to cases where all or some of the members of the consortium are Associated Enterprises as defined in section-92A of the Income-tax Act. This Circular is expected ....
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....to reduce litigation with consortium of contractors implementing EPC contracts/turnkey projects. Circular No.7/2016 is available on the website of the Department www.incometaxindia.gov.in.<BR> News -....
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.... Press release - PIB....