Tax Law

Shifting Existing Unit to a SEZ Unit: Can You avail Tax Benefit for Transfer of Technical Manpower?

Section 54GA of the Income Tax talks about exemption of capital gains on transfer (sale) of capital assets of the existing unit to a third party at the time of shifting of industrial undertaking from urban area to any Special Economic Zone. Such instance of capital gain arises when the three ingredients of capital gains…

Tax Law

DIT v. Copal Research Mauritius Limited, Moody’s Analytics, USA & Ors.

FACTS Copal Partners Ltd., Jersey (“CPL Jersey“), held 100% shares in Copal Research Ltd., Mauritius (“CRL Mauritius“). CRL Mauritius, in turn, held 100% of the shares in both, Copal Research India Pvt. Ltd., India (“CRIPL India“) and Copal Market Research Ltd., Mauritius (“CMRL Mauritius“). CMRL Mauritius, in turn, held 100% of the shares in Exevo…

Tax Law

Zaheer Mauritius Vs. Director of Income Tax

WHAT IS COMPULSORILY CONVERTIBLE DEBENTURE (CCD)? A debenture indisputably creates and recognizes the existence of a debt and till it is discharged, either by payment or by conversion, the debenture would essentially represent a debt. A Compulsorily Convertible Debenture is a debt which is compulsorily liable to be discharged by conversion into equity. Any amount payable by the issuer…

Tax Law

Tax Implications on Issuance of Compulsorily Convertible Preference Shares /Convertible Preference Shares

The issuance of Compulsorily Convertible Prefernce Shares (“CCPS“) and Convertible Preference Shares (“CPS“) and conversion thereof can give rise to two kinds of taxing events for the company issuing such shares. First is when the preference shares are simply redeemed either a higher market value or lower market value. Second is when such preference shares…

Copyright | Intellectual Property Rights | Tax Law | Technology Law

Director of Income Tax vs. Infrasoft Ltd.

Director of Income Tax vs. Infrasoft Ltd. Delhi High Court 22.11.2013 Key Words: taxability, use of software,  royalty, double taxation, Double Taxation Avoidance Agreement, license, transfer of copyright, transfer of copyrighted article, copyright, computer programme Relevant Statutory Provisions: Income Tax Act, 1961: Ss. 260A, 9(1)(vi), Double Taxation Avoidance Agreement (DTAA): Article 7, 12(3) Facts: The Respondent/Assessee (A) in this case…