Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 1961: s.9(1)(vii)(b) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Income Tax Act, 1961: s.9(1)(vii)(b) - Success fee payable by appellant company to Non-Resident Company (NRC) for rendering professional advice for procurement of loan and for providing other financial and general services -Whether success fee is chargeable under the Act and whether · D appellant-company is entitled to 'No-Objection Certificate' -Held: The services rendered by NRC included, inter alia, financial structure and security package to be offered to the lender, study of various lending alternatives for the local and foreign borrowings, making assessment of expert credit E agencies world-wide and obtaining commercial bank support on the most competitive terms, assisting the appellant company in loan negotiations and documentations with the lenders, structuring, negotiating and closing financing for the F project in a coordinated and expeditious manner - The nature of service rendered by the NRC would come within the ambit of the term 'consultancy service' and, therefore, the tax at source should have been deducted as the fee paid was taxable under the head 'fee for technical service' - Once G the tax which is payable is paid the grant of 'No Objection Certificate' was not legally permissible - |
Judge | Honble Mr. Justice Dipak Misra |
Neutral Citation | 2015 INSC 131 |
Petitioner | Gvk Industries Ltd. &anr. |
Respondent | The Income Tax Officer &anr. |
SCR | [2015] S.C.R. 321 |
Judgement Date | 2015-02-18 |
Case Number | 7796 |
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