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  • 28-Jan-2013 | HP Agrawal

    HP Agrawal: The new GAAR needs further modifications

    Since liberalisation of the Indian economy in 1991, the government has all along laid a red carpet to lure foreign investors. However, for the last 4-5 years, policies of the government have been somewhat discouraging towards foreign investments. In ...

  • 17-Dec-2012 | HP Agrawal

    HP Agrawal: Benefit clause in tax treaties has its limitation

    Foreign investors follow a circuitous route to save taxes, abusing treaty provisions

  • 17-Dec-2012 | HP Agrawal

    HP Agrawal: Benefit clause in tax treaties has its limitation

    Foreign investors follow a circuitous route to save taxes, abusing treaty provisions

  • 19-Nov-2012 | HP Agrawal

    H P Agrawal: Embedded software is not taxable

    A software having no independent existence is not taxable as royalty

  • 29-Oct-2012 | HP Agrawal

    HP Agrawal: Provident Fund withdrawal rationalised for expatriates

    Does the Indian Provident Fund Scheme apply to expatriate employees? Are they obliged to contribute to the Indian PF Scheme even if they are already making contribution for social security in their home country? How and when they will get back their ...

  • 15-Oct-2012 | HP Agrawal

    HP Agrawal: Controversy on taxability of offshore supplies set at rest

    The issue of taxability of ‘offshore supply’ was settled by the Apex Court in the case of Ishikawa [288 ITR 408] wherein it was held that ‘the entire transaction having been completed on the high seas, the profit on sale did not ...

  • 01-Oct-2012 | HP Agrawal

    HP Agrawal: Advance pricing agreements: A new era in transfer pricing

    Rules apply with immediate effect of publication

  • 17-Sep-2012 | HP Agrawal

    HP Agrawal: Does AAR have the power to review its own rulings?

    The Hon’ble Supreme Court in the case of Columbia Sportswear Company v DIT held that the Authority for Advance ruling (AAR) is exercising judicial power and is a “Tribunal”. It was further held that writ petitions against the ...

  • 03-Sep-2012 | HP Agrawal

    HP Agrawal: Is AAR subordinate to high court ?

    Provisions relating to the Authority for Advance Rulings (AAR) were introduced by the Finance Act 1993. The intent was to create an independent adjudicatory body and to ensure that the procedure is simple, inexpensive, expeditious and authoritative.

  • 20-Aug-2012 | HP Agrawal

    HP Agrawal: Applicability of treaties on branches of foreign companies

    For computing tax liability in India, should the treaty with branch country or that with the head-office country be applied?

  • 06-Aug-2012 | HP Agrawal

    HP Agrawal: Scope of 'fees for technical services' clarified

    Definition of the term “Fees for Technical Services” (FTS) has been a matter of controversy for quite some time because different interpretations have been given by various courts with regard to the true scope and meaning of FTS.

  • 23-Jul-2012 | HP Agrawal

    HP Agrawal: Judicial system damaged by conflicting decisions of AAR

    The judicial system in India is generally very time consuming and finality in high demand cases is attained only after a long-drawn litigation till Supreme Court. Flow of foreign investment is extremely sensitive to prolonged uncertainty in tax ...

  • 09-Jul-2012 | HP Agrawal

    HP Agrawal: Vodafone's case misinterpreted by Authority for Advance Rulings

    The long drawn battle between Vodafone and the Income-tax Department was settled by the Hon’ble Supreme Court vide its decision dated 20.01.2012 reported in 341 ITR 1. It was believed that Vodafone will no longer be required to pay any tax in ...

  • 28-May-2012 | HP Agrawal

    HP Agrawal: Uncertainty over consortium agreements

    It is quite common these days that foreign companies take up turnkey projects in India in association with other companies. For this purpose, quite frequently, foreign companies enter into a joint venture (JV) or a consortium agreement.

  • 14-May-2012 | HP Agrawal

    HP Agrawal: Capital gains on buyback of shares held taxable as dividend

    Any foreign investment coming into India is naturally planned in a manner that the tax liability remains at the minimum possible level. The current legal position prevailing in India is that any planning which results in lowering of tax liability in ...

  • 30-Apr-2012 | HP Agrawal

    HP Agrawal: Amendments in transfer pricing provisions need to be reviewed

    Transfer Pricing (TP) Provisions were introduced in India by the Finance Act 2001. The TP Provisions were introduced with an intent to protect India’s right to collect a fair share of tax in respect of cross border transactions. In simpler ...

  • 16-Apr-2012 | HP Agrawal

    HP Agrawal: Some serious implications of retrospective amendments

    The requirement of withholding tax has been clarified by the Hon’ble Supreme Court in the case of GE India Technology Centre P Ltd v CIT [327 ITR 456] that the Indian companies shall be required to withhold tax only when the sum payable to ...

  • 02-Apr-2012 | HP Agrawal

    HP Agrawal: Dispute resolution amendments need to be reviewed

    To provide a suitable mechanism for resolution of tax disputes between the tax department and foreign companies operating in India, the Government of India initially inserted provisions relating to Advance Rulings vide the Finance Act, 1993. An ...

  • 19-Mar-2012 | HP Agrawal

    Budget humbles judiciary

    The story of Vodafone’s case in Supreme Court is only a few months old story. Briefly the facts were that Vodafone, Netherlands entered into an agreement with a Hong-Kong Company to acquire shares of a Cayman Island Company which in-turn held ...

  • 05-Mar-2012 | HP Agrawal

    Royalty from permanent establishment taxable on net profit

    Fees for Technical Services (FTS) is taxable in India on gross basis, but if FTS arises through a Permanent Establishment (PE) in India, then FTS assumes the characteristics of business income. In such a case, FTS is taxed as business income @40% on ...

  • 20-Feb-2012 | Hp Agrawal

    Offshore supplies are tax free

    The issue of taxability of 'offshore supply price' was settled by the Apex Court in the case of Ishikawa [288 ITR 408] wherein it was held that 'the entire transaction having been completed on the high seas, the profit on sale did not arise in ...

  • 06-Feb-2012 | HP Agrawal

    'Make available' in technical services

    The term ‘fees for technical services’ is defined in Explanation 2 to section 9(1)(vii) of the Income Tax Act. The said term is also defined in various Double Taxation Avoidance Agreements (DTAA) .The normal definition of ‘fees for ...

  • 23-Jan-2012 | HP Agrawal

    A legal analysis of the triumph

    Facts of Vodafone's case are briefly as under.

  • 09-Jan-2012 | HP Agrawal

    Importance of Indian office in overseas activities

    It is quite common now a days that a foreign company undertakes turnkey projects along with an Indian company. Such projects include activities which are carried out in India as well as outside India. The activities to be carried out outside India ...

  • 26-Dec-2011 | HP Agrawal

    Capital gain on transfer of controlling interest

    In a recent interesting case of Groupe Industrial Marcel Dassault, in AAR no 847 of 2009 the shares of an Indian company, namely, Shantha were owned and controlled by a French company, namely, ShanH. The shares of ShanH were held by two French ...