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Part tx is leviable on Non-resident/seller

Raj Kumar Makkad ,
  20 September 2010       Share Bookmark

Court :
Bombay High Court
Brief :
Tax Transactions - Jurisdiction of Income Tax Department on Transaction outside India - Determination 0f - Whether Income tax authorities in India have the jurisdiction to tax transactions, even though the transaction took place outside India as the underlying assets were in India ?
Citation :
Vodafone International Holdings B.V. v. Union of India (Decided 08.09.2010) MANU/SC/0105/2009

Held, Court held that the transfer of these rights and entitlements constitute capital, which can be taxed as part of non-resident income. This upholds the contention of the tax authorities which argued that Vodafone (non-resident buyer) should have deducted tax before making payment to the non-resident seller. The Court also remarked that only that part of income will be taxed in India which can be attributable to India and not on the foreign source income.

 
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Published in Taxation
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