the Appellate Tribunal was right in holding that the second reassessment proceedings were not validly initiated and thereby quashing the reassessment proceedings-the proceedings initiated by the AO for the second time under Section 147 is barred by limitation-even the proviso to Section 147 does not come into play on the facts of the case-AIT-2010-373-HC Even if the goods belong to same entry, manufacture does take place if new identifiable/marketable goods known in market emerge due to operation conducted-the process of ironing applied to the stiched brassieres prior to their packing was a process incidental to the completion of the brassieres as a manufactured product-process of purification and filtration being incidental or ancillary to the manufacture of a marketable product, the Respondent was entitled to Modvat credit on the inputs involved-AIT-2010-370-HC Larger Bench of CESTAT rules the Tribunal has ample power to condone the delay in filing the appeal including the one filed under section 35 E (4)-AIT-2010-372-CESTAT Corruption in IRS takes its toll-Deputy Commissioner of Income Tax Dhananjay Kumar arrested by CBI in Mumbai-Joint Commissioner of Customs & Excise Hemant Kothikar also arrested by CBI FM directs expediting of Cadre Restructuring in CBDT & CBEC Tariff Value for import of Brass Scrap is 3924-Customs Non-Tariff Notification No. 78 Chief Justice of Gauhati High Court Justice Ranjan Gogoi to be Chief Justice of Punjab & Haryana High Court Anti-dumping duty on imports of Acrylic Fibre originating in, or exported from Japan and Belarus-Customs Tariff Notification No.85 Prescribing SION for new product “Propylene” under Chemical & Allied Products Group-DGFT PN 7 Inclusion of Finished Leather in the Focus Product Scheme of FTP-DGFT PN 6 Exchange Rate for imported goods is Rs 47.25 per US Dollar and Rs 60.35 per EURO-Exchange Rate for export goods is Rs 46.30 per US Dollar and Rs 58.70 per EURO-Customs Non-Tariff Notification No. 77-Click on Exchange Rate for details Anti Dumping Duty under the Notification No.15/2007 is not applicable to Spandex Yarn (Elastomeric yarn)-Customs Circular No.30 Import of goods under Notification No.13/2010 for Commonwealth Games, 2010-Customs Circular No.31 Larger Bench of CESTAT rules charges towards pre-delivery inspection and after-sale-service by dealers from buyers of the cars to be included in the assessable value of cars for payment of excise duty-AIT-2010-366-CESTAT merely because there was non accounting of goods, penalty was technical and inference of clandestine removal was not called for-AIT-2010-365-HC ITAT rules provision for doubtful debts and provision for standard debts are to be taken into consideration for computation of book profit u/s. 115JB of the IT Act-AIT-2010-361-ITAT HC rules slitting of aluminum foils into customized width, mounting the same on the printing machine and thereafter printing the necessary text thereon is covered for 80IB benefit as it falls within the ambit of the term “produce”-AIT-2010-363-HC Definitive Anti-dumping duty imposed on imports of Coumarin, originating in, or exported from China-Customs Tariff Notification No. 82 Special Bench of ITAT Ruling-where a forward contract is entered into by the assessee to sell the foreign currency at an agreed price at a future date falling beyond the last date of accounting period, the loss is incurred to the assessee on account of evaluation of the contract on the last date of the accounting period i.e. before the date of maturity of the forward contract-AIT-2010-355-ITAT-SB

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No TDS on salary to non-resident employees
AIT News Network

NEW DELHI. Authority for Advance Rulings(Income-Tax) vide a recent ruling AIT-2006-249-AAR has ruled that the salary paid by the Company registered in India to non-resident employees for rendering services outside India shall not be taxable in India if the same has been offered for tax in the UK in pursuance of the DTAA.

T H E F A C T S:

The applicant company registered in India under the Companies Act 1956 and itself a resident in India within the meaning of section 6 of the Act, it raised certain issues relating to the tax liability of some of its non-resident employees lent to group companies abroad. The applicant sought advance ruling of the Authority on the following questions :

(i) Whether in the facts and circumstances of the case and in law, salary income received in India by Mr.Manish Gupta from British Gas India Private Limited for rendering services outside India is taxable in India?

(ii) Whether in the facts and circumstances of the case and in law, British Gas India Private Limited is required to withhold taxes on salary paid in India to Mr.Nipun Pradhan and Mr.Manish Gupta for rendering services outside India?

The applicant stated that it is a part of BG Group, a leading international energy company which deals in all kinds of natural gases. India is one of BG Group’s six core geographic areas of operation. The applicant is responsible for managing and developing upstream and downstream interest of the Group in this country. The applicant lent some of its employees to BG Group entities outside India.

T H E R U L I N G:

(i) The salary paid by the applicant to Mr.Manish Gupta shall not be taxable in India, if the same has been offered for tax in the U.K. in pursuance of the DTAA.,

(ii) The applicant shall not deduct tax at source from salary paid to Mr.Nipun Pradhan and Mr.Manish Gupta in India, provided it is satisfied from the details and particulars furnished under section 191(2) that taxes have been paid on such payments in the U.K.

( Click here for full text of Ruling AIT-2006-249-AAR )