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January 2020

Direct Tax Amicus: November 2019

Article

Taxation of income from shipping business
by Mahendra Singh

In international trade, Indian companies also avail carriage services provided by foreign shipping companies. The amount paid in lieu of shipping services to these foreign companies may be taxed if the income is accrued or received in India. The author of the article in this issue of Direct Tax Amicus, highlights various kinds of transactions such as operation of ships for carriage of passengers, live-stock, mail or goods; leasing of ship; operation of special vessels, and the issues arising in the taxation of such income in India. Discussing several issues with the help of domestic law, international treaties and relevant case law, the author suggests that for determining taxable income there is no straight jacket formula as the taxation will depend on the nature and substance of the transactions. According to him, the taxpayers should be cautious...

Bill and Notification

  • Taxation Laws (Amendment) Bill, 2019
  • Rules and form for deduction of tax on fee paid to professionals under Section 194M notifiedread more

Ratio decidendi

  • Order pertaining to buy-back taxable appealable since ‘assessee denies liability to tax’ under the Act - Writ cannot be entertained – Supreme Court
  • Deduction of prior period expenditure is allowable in the year of crystallisation of liability – ITAT
  • Interest on delayed receipt of receivables from AE is a separate international transaction - Debt free structure of AE not a defence – ITAT Chennai
  • In absence of specific intimation to Assessing Officer with respect to change in address, notice issued to address in PAN database is valid - Supreme Court
  • Gains arising from a systematic activity carried out on a land taxable as ‘business income’ – ITAT Ahmedabad
  • Delay in deposit of tax deducted at source is ‘failure to deposit’ - Additional Civil and Sessions Judge, Bangalore
  • Features of electronic form of return of income cannot bar an assessee from making claims which he feels he is allowed under the Act - Bombay High Court
  • Funds misappropriated by former director and becoming irrecoverable, allowable as business loss – ITAT Mumbai
  • Expenditure incurred on payment of arbitral award is allowable as business loss – ITAT Mumbai
  • Amount received for unauthorised occupation of let out property is not taxable as rent – ITAT Kolkataread more

November, 2019/Issue-62 November, 2019/Issue-62

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