« Top Headlines » Open DEMAT Account in 24 hrs  ITR Filing: 6 Ways to Get Exemption on Income Tax  Income Tax Return Filing: 10 Mistakes To Avoid When Filing ITR For AY 2024-25  Old vs New Tax Regime: Who should move to the New Tax Regime from the old one?  Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals «  Service tax evasion causes revenue loss... -T dept moves SC against AAR ruling... » I-T moves SC on foreign firms' tax-liability ruling August, 18th 2007 The income tax department has moved the Supreme Court, challenging the findings of the authority for advanced rulings (AAR), which had said foreign firms were not liable to pay tax on the assignment amount charged from their Indian subsidiaries, if the contract was signed outside the country. The quasi-judicial body gave this ruling in a case concerning Swiss firm Honeywell Technologies SARL, which had received a fee from Honeywell Turbo India for supplying equipment to Tata Motors. Solicitor general GE Vahanvati, appearing on behalf of the revenue department, said the AAR ruling would have a snowballing effect as this could lead to similar innovations by foreign companies. This would deprive the Indian exchequer of legitimate taxes, said Vahanavati. A bench headed by Justice Ashok Bhan issued a notice to Honeywell Technologies, asking it to respond to the petition. AAR, on an application by the Swiss company had, earlier this year, ruled that since the assignment contract with Honeywell Turbo was entered into in Switzerland, the assignment amount was not covered under the Income Tax Act, 1961. Honeywell group had entered into a pact with Telco in September 2003 for supply of turbochargers for its passenger car. The group later transferred its rights and interests in the Indian business to its 100% subsidiary Honeywell Turbo for E7.5 million. According to the revenue department, AAR was wrong in holding that Honeywell had no business connection in India, and the assignment fee was a consideration received in lieu of transfer of these rights and interest to the Indian unit. The tax department has said AAR failed to evaluate the profit earned by Honeywell from sale of engines to Tata Motors and income to be earned from Indian operations.