01 January 0001

Direct Tax Amicus: June 2016


Electronic transfers into an NRE account – Income received in India? -

While Section 9(1) (ii) creates a deeming fiction on what could be an accrual or deemed accrual in respect of salary received/receivable by a non- resident, there is no clear explanation in the Act with respect to amounts/income which has been received or deemed to have been received. ITAT, Kolkata recently held that remuneration directly remitted to the NRE account is taxable in India …


Ratio Decidendi

  • Payment for performance guarantee is not interest as per Article 12 of India-Denmark DTAA – ITAT, Chennai
  • Pre-construction activities not to be considered for ascertaining eligibility of deduction under Section 80IB(10) – High Court of Madras
  • No international transaction can be inferred, absent an agreement to share /reimburse AMP expenditure – ITAT, Mumbai
  • Documentation for intra-group services cannot be more burdensome than for services from un-related parties – ITAT, Delhi


April, 2016/Issue-21 June, 2016/Issue-23

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