Installation & Commissioning Expenses not covered under definition of FTS u/s 9 of Income Tax Act, 1961
The issue is no longer res integra as it has been held by Hon'ble ITAT Mumbai in case of Bennet Coleman & Co. Ltd. Vs ITO(TDS) [ITA No. 7315/Mum/2008] pronounced on 12-11-2014 wherein the assesse (Times of India) has entered into an agreement with M/s FERAG AG for supply of heavy plant and machinery along with installation and commissioning of the same. The supplier was also under an obligation for training the employees of the plaintiff. Two separate contracts were entered, one for supply of machine and other for related services. The payment was made to M/s FERAG AG and no TDS was deducted on it. The AO issued notice u/s 201(1) and imposed interest under section 201(1A) of the Act.
The assesse being aggrieved appealed before the Learned CIT(A) who allowed the appeal partially in favour of the assesse. The assesse preferred an appeal before the Hon'ble ITAT against the said order. The assesse pleaded that although two separate contracts were entered but it was one comprehensive activity and thus the contract cannot be separated and it is not taxable under FTS. This argument was declined relying on the landmark judgement of Hon'ble Apex Court in case of Ishikawajima-Harima Heavy Industries wherein it was held that
"The very fact that in the contract, the supply segment and service segment have been specified in different parts of the contract is a pointer to show that the liability of the assessee thereunder would also be different."
The assesse then pleaded that the installation and commissioning would tantamount to assembly which is specifically excluded from the definition of FTS under Explanation 2 to Section 9(1)(vii) of the Act. This contention of the assesse was upheld by Hon'ble Tribunal. It was further held that by no stretch of imagination it can be held that training of employees of the assesse could fall within the meaning of assembly.
Further, it was observed that as per Article 14 of the India-Swiss Confederation DTAA, the said services (installation, commissioning and training) was taxable only in Switzerland. As per Article 14 of the DTAA which defines engineering services and thus the said services would not be taxable in India as the supplier does not have a PE in India. The tax would however be imposed on the training charges paid by the assesse. The appeal was partly allowed in favour of the assesse.
Author – Aditya Singhania and Nischal Agarwal
Why we should fear a failure but not to dis-respect it
Shaifaly Girdharwal
I know you are ambitious and you want to achieve exceptional things in life in a short time span. Ambition is desire to achieve something faster than the people of same calibre and position. These ambitions make us a believer in positive things. We love to read success stories as they motivate us. They create a sense of confidence that you will achieve your dream. Those success stories mix with your desire and become a confidence and definitely you feel good as people can see your confidence and they also start believing in you. But before starting your efforts, and if path of your ambition want you to take some risk, then before taking that risk have you sit down and think about what if it will be a failure. If thing will not go as you have planned them. Do you have a plan B if plan A don't work?I know you guys don't want to think in this way and when some people raise doubt on your plans initially you try to convince but when you have no replies you leave the discussion but in your heart you console yourself and tell your heart that you will get success and this guy (raising questions on your plans) will feel shame for this behaviour and argument. But in real world only 5% of new ventures get success. Only 2% of them get huge success. Hey I know you are not enjoying this and you feel that I am trying to kill your faith and confidence. Trust me I am not. I just want to make you more strong, mentally and emotionally, because there will be a time when you will see your efforts are failing. When you target for let's say $100 but result is 0, yes, then? If you want to be a part of those 5% you will need your confidence and strength at that time. This is my efforts in this article to make you mentally prepared for that time.
I don't want to create a fake sense of confidence but I want my reader to be the strongest person to handle bad days. Trust me only those bad days will bring you success. Before you start, think a thousand times, give yourself proper time to analyse each and every aspect and the most important thing be ready for a failure. Accept that you may fail also and try hard from beginning to avoid any disaster. But when there will be actual failures and hurdles in your path, respect them, nurture them, make them a part of your journey and most important accept them with grace.
When you choose a different path from others you will get different life. Sometimes you will see that the people who haven't tried anything, who haven't taken any risk are having a better life than you, you choose to take risk and make extra efforts, and still your life is less blessed. It is because the aim you have chosen is not easy, believe in yourself. Life will pay you for extra efforts but not if you stop or you demand it on every step you take. You will have to continue your efforts till the time you achieve it. You will have to face and conquer every fall and pass through so many of hurdles every day.
I may be harsh for some people but life is also, success is also,ambitions are also……
Good Luck
(Author Shaifaly Girdharwal is a Cross border business set up and process outsourcing Consultant)
Why we should fear a failure but not to dis-respect it
Shaifaly Girdharwal
I know you are ambitious and you want to achieve exceptional things in life in a short time span. Ambition is desire to achieve something faster than the people of same calibre and position. These ambitions make us a believer in positive things. We love to read success stories as they motivate us. They create a sense of confidence that you will achieve your dream. Those success stories mix with your desire and become a confidence and definitely you feel good as people can see your confidence and they also start believing in you. But before starting your efforts, and if path of your ambition want you to take some risk, then before taking that risk have you sit down and think about what if it will be a failure. If thing will not go as you have planned them. Do you have a plan B if plan A don't work?I know you guys don't want to think in this way and when some people raise doubt on your plans initially you try to convince but when you have no replies you leave the discussion but in your heart you console yourself and tell your heart that you will get success and this guy (raising questions on your plans) will feel shame for this behaviour and argument. But in real world only 5% of new ventures get success. Only 2% of them get huge success. Hey I know you are not enjoying this and you feel that I am trying to kill your faith and confidence. Trust me I am not. I just want to make you more strong, mentally and emotionally, because there will be a time when you will see your efforts are failing. When you target for let's say $100 but result is 0, yes, then? If you want to be a part of those 5% you will need your confidence and strength at that time. This is my efforts in this article to make you mentally prepared for that time.
I don't want to create a fake sense of confidence but I want my reader to be the strongest person to handle bad days. Trust me only those bad days will bring you success. Before you start, think a thousand times, give yourself proper time to analyse each and every aspect and the most important thing be ready for a failure. Accept that you may fail also and try hard from beginning to avoid any disaster. But when there will be actual failures and hurdles in your path, respect them, nurture them, make them a part of your journey and most important accept them with grace.
When you choose a different path from others you will get different life. Sometimes you will see that the people who haven't tried anything, who haven't taken any risk are having a better life than you, you choose to take risk and make extra efforts, and still your life is less blessed. It is because the aim you have chosen is not easy, believe in yourself. Life will pay you for extra efforts but not if you stop or you demand it on every step you take. You will have to continue your efforts till the time you achieve it. You will have to face and conquer every fall and pass through so many of hurdles every day.
I may be harsh for some people but life is also, success is also,ambitions are also……
Good Luck
(Author Shaifaly Girdharwal is a Cross border business set up and process outsourcing Consultant)
 | |||||||
Why we should fear a failure but not to dis-respect it Shaifaly Girdharwal I know you are ambitious and you want to achieve exceptional things in life in a short time span. Ambition is desire to achieve somet... | |||||||
__._,_.___
No comments:
Post a Comment