Jurisprudentiol – Thursday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise

Revenue has no need to worry, says CESTAT while dismissing Stay application against Commissioner (Appeals) 's order setting off demand against refund.

Commenting that the factual scenario was that a total amount of Rs.17 lakhs was lying with the Department, the Bench viewed that there was no reason for the Revenue to hold any worry and dismissed the Revenue application for stay.

Income Tax

India-UK DTAA - non-resident sells financial products through subsidiary in India - business porfits - since non-resident company seconds employees to work for Indian subsidiary it is a case of service PE under DTAA - matter remanded for fresh examination - ITAT

Reuters Ltd is a tax resident of the UK. It sets up a subsidary in India and enters into multiple agreements like Distributor's Agreement, Product Distribution Agreement and Licence Agreement for royalty payment. Assessee specialises in globally marketing news and financial products through its global communication network. India subsidiary is authorised to sell its products to Indian customers and pay up to the parent company certain percentage of the sales. So far as the royalty is concerned, it pays tax in India as per Article 13 of the DTAA .

Service Tax

Is interest payable for period during which operation of provisions of statute was stayed by interim order of High Court? - Kabhi Haan Kabhi Naa

RECENTLY, an issue came up before the Chennai Bench of the CESTAT on payment of interest for the period during which there is a stay against the operation of the provisions of the Statute.

See our columns Tomorrow for the judgements