Analysis of Circular no. 7/2009 issued to withdraw earlier circular pertaining to non-resident taxation
Dec 10, 2009 Income Tax
The Central Board of Direct Taxes (CBDT) had earlier issued a circular (Circular No. 23 dated July 23, 1969) clarifying the India tax liability of non-residents in respect of income accruing or arising through or from, a business connection in India. As per the aforesaid Circular 23, even if a business connection existed under section 9 of the Income-tax Act, 1961 (“the Act”), only so much of the profit which can be reasonably attributed to the operations of the business carried out in India could be subject to tax in India. Circular 23 also provided clarifications on the taxability of non-residents in specific situations.
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Tags: business connection, CBDT, direct taxes, income tax act, income tax act 1961, india tax, indian importer, indian importers, non residents, principal basis, resident agents, tax liability, tax payers
CBDT withdrawn circulars related to taxability of foreign companies and non-residents, engaged in specified business activities
Nov 16, 2009 Income Tax
Lately, the Central Board of Direct Taxes or CBDT (which is the highest ranking executive authority for income taxes in India) has withdrawn several of its circulars / instructions, which were relied upon by foreign companies and non resident taxpayers.
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Tags: CBDT, Circular No. 163, Circular No. 23, Circular No. 786, circulars, direct taxes, income tax act, indian exporters, indian importer, indian importers, indian income tax act, indian subsidiary, installment basis, plant and machinery, power projects, procurement office, turnkey power