Monday, August 8, 2011

Income accruing or arising in India to a non-resident (US company) on t

IT/ILT : Income accruing or arising in India to a non-resident (US company) on transfer of a capital asset situate in India to an Indian company would be income deemed to accrue or arise in India to said non-resident and can be assessed in hands of the non-resident or in hands of Indian company as agent of that non-resident under section 163 [Section 9 of the Income-tax Act, 1961 - Income - Deemed to accrue or arise in India]

l Transfer of Indian company's share constitutes transfer of a capital asset situate in India and income from such transfer of capital asset even if accrues or is received in India within the meaning of section 5 such income being specifically enumerated under section 9 would be income deemed to accrue or arise in India

l The capital gains accruing or arising to a non-resident on transfer of a capital asset situate in India apart from being taxed in hands of non-resident, can be taxed in hands of agent of non-resident under section 163 read with section 9 because the income accruing to the non-resident falls within the category of deemed income specified in section 9

l The CBDT circulars No. 682 & 789 explaining the DTAA between India & Mauritius would not apply where the investments are made in India by entities other than the entities incorporated in Mauritius - [2011] 12 taxmann.com 141 (Bom.)

1 comment:

  1. My brother want to apply for this post.Can you tell if this vacancy is still available or is filled up now and what is the selection procedure and criteria.Thanks.
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