01 January 0001

Direct Tax Amicus: August 2017

by Gayatri Sridharan


Limitation of Benefits clause in the India Singapore DTAA - An analysis of recent decisions

The Mumbai Bench of the Income Tax Appellate Tribunal had occasion to examine the India-Singapore DTAA in a recent judgment. The assessee had earned capital gains on sale of debt instruments and claimed exemption under Article 13(4) of India-Singapore DTAA. However, the revenue authorities denied relief stating that the gains should have been received in or remitted to Singapore as per Article 24 of the DTAA. The Tribunal held that the limitation prescribed under Article 24 of the Treaty is not applicable since the income earned by assesse on sale of debt instrument is not taxable in India as per Article 13(4) of Treaty...


Circulars and Notifications

  • Multilateral Competent Authority Agreement on the Exchange of Country-by Country Reports signed by India comes into force
  • TDS need not be deducted on the GST component - CBDT clarifies
  • Standard rate for granting stay of demand raised to 20% of outstanding demand


Ratio decidendi

  • Bottling of LPG gas in cylinders amounts to production - Supreme Court
  • Onus on Department to establish that trading activity is carried out through LO in order to be considered a PE – Delhi High Court
  • Capital Reserve on amalgamation not taxable as benefit or perquisite under Section 28(iv) - ITAT, Chennai
  • Credit available to HUF for tax deducted on payments made in the name of Karta – Gujarat High Court
  • Payment for accessing database containing general information is not royalty – Delhi High Court
  • Income credited directly to NRE account is not liable to tax in India if the services are rendered outside India – Calcutta High Court
  • Forex gain on royalty or interest income received by a resident is taxable in India – Bombay High Court


August, 2017/Issue-36 August, 2017/Issue-36

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