If company constructed structure on shareholders land then rent there from will be taxable in the hand of company
Feb 7, 2010 Income Tax Case Laws, Others
CASE LAW DETAILS
Decided by: HIGH COURT OF KARNATAKA, In The case of: CIT v. Monarch Citadel Pvt. Ltd., Appeal No.: ITA No. 1183 of 2006, Decided on: January 13, 2010
RELEVANT PARAGRAPH
In so far as the rents received from “Samsung” are concerned., the finding recorded by the Assessing Officer is that, the structure is constructed by the Company itself with its own funds and not that the super structure has been constructed by the shareholders on the land belonging to the Company or a case where the investments have been made on behalf of the shareholders.
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Tags: HUF, karta, samsung, section 27(3)
Karnataka High Court rules on withholding tax obligation for non-resident payments
Nov 20, 2009 Income Tax Case Laws
This article summarizes a recent ruling of the Karnataka High Court (HC) [ITA No. 2808 of 2005] in the case of Samsung Electronics and others (Taxpayers). The HC held that any payment resulting in any income in the hands of a non-resident would be subject to withholding tax under the Indian Tax Law (ITL). Unless an order is obtained from the Tax Authority for withholding tax at a lower rate or for not withholding tax, a taxpayer would need to withhold tax on the income at the applicable withholding tax rates, even if the income may not be taxable in the hands of the non-resident.
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Tags: appellate authority, applicable tax, computer programs, computer software, karnataka high court, litigation, non residents, Royalty, samsung, samsung electronics, Samsung Electronics and others, Tax Treaty, taxpayers, Withholding Tax Rates