Centrica India Offshore Pvt.Ltd. v. CIT

364 ITR 336High Court2014#1317 most cited

What is Centrica India Offshore Pvt.Ltd. v. CIT authority for?

Payments by an Indian company to an overseas entity for seconded employees constitute payment for services rendered, not mere reimbursement, when the Indian company lacks the power to terminate the secondee's original employment. Such payments are taxable as Fees for Technical Services and subject to TDS under Section 195.

87

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2025.

Also referred to as

Centrica India Offshore Pvt.Ltd. v. CIT · 364 ITR 336 · Delhi High Court · seconded employees · expat employees · Fees for Technical Services · FTS · DTAA Article 12 · section 195 · reimbursement of salary · payment for services · section 40(a)(i)

Issues it is cited on

section 192(1)place of effective managementsection 203section 9(1)(ii)section 44dasection 44dsection 9(i)(vii)section 9(i)service pefees for included servicessection 192interest under section 201(1a)

Judgments citing Centrica India Offshore Pvt.Ltd. v. CIT

Asst CIT (It) 4(2)(2), Mumbai vs. Societe Generale, Mumbai

The appeal of the revenue is partly allowed

ITA 4542/MUM/2015[2009-10]Status: DisposedITAT Mumbai11 Sept 2017AY 2009-10

Bench: Shri Shamim Yahya, Am & Shri Ravish Sood, Jm आयकर अपील सं./ I.T.A. No. 4542 & 1671/Mum/2015 (निर्धारण वर्ा / Assessment Year: 2009-10 & 2010-11) Dy. Cit(It)-4(2)(2), M/S. Societe Generale 1St Floor, R. No. 120, 19Th Floor, Tower ‘A’ बिधम/ Scindia House, Ballard Estate Peninsula Business Park, Vs. N.M. Road, Mumbai-400 038 Ganpatrao Kadam Marg Lower Parel, Mumbai 400013 स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aabcs7484C (अपीलाथी/Revenue ) (प्रत्यथी /Assessee) :

For Appellant: Shri Brijmohan P. Agarwal, A.RFor Respondent: Shri M.V. Rajguru, Sr. D.R
Section 143Section 143(3)Section 40Section 9(1)

…CIT(A) after having admitted in para 13 of its order that the payment was for right to use of software failed to appreciate that the same could not be in nature of reimbursement, even of there was no markup as held in case of Centrica India Offshore (P) Ltd. 364 ITR 336 (Del)? 4. Whether, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that Reimbursement/ Royalty payments made by the assessee, to its HO is not taxable in the hands of assessee, being PE of the Head Office in view of new explanation below sub clause (c) of Clause (v) of section 9(1) introduced by F…

DCIT, (It)- 4(2)(2), Mumbai vs. Societe Generale, Mumbai

The appeal of the revenue is partly allowed

ITA 1671/MUM/2015[2010-11]Status: DisposedITAT Mumbai11 Sept 2017AY 2010-11

Bench: Shri Shamim Yahya, Am & Shri Ravish Sood, Jm आयकर अपील सं./ I.T.A. No. 4542 & 1671/Mum/2015 (निर्धारण वर्ा / Assessment Year: 2009-10 & 2010-11) Dy. Cit(It)-4(2)(2), M/S. Societe Generale 1St Floor, R. No. 120, 19Th Floor, Tower ‘A’ बिधम/ Scindia House, Ballard Estate Peninsula Business Park, Vs. N.M. Road, Mumbai-400 038 Ganpatrao Kadam Marg Lower Parel, Mumbai 400013 स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aabcs7484C (अपीलाथी/Revenue ) (प्रत्यथी /Assessee) :

For Appellant: Shri Brijmohan P. Agarwal, A.RFor Respondent: Shri M.V. Rajguru, Sr. D.R
Section 143Section 143(3)Section 40Section 9(1)

…CIT(A) after having admitted in para 13 of its order that the payment was for right to use of software failed to appreciate that the same could not be in nature of reimbursement, even of there was no markup as held in case of Centrica India Offshore (P) Ltd. 364 ITR 336 (Del)? 4. Whether, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that Reimbursement/ Royalty payments made by the assessee, to its HO is not taxable in the hands of assessee, being PE of the Head Office in view of new explanation below sub clause (c) of Clause (v) of section 9(1) introduced by F…

Flughafen Zurich Ag, Bangalore vs. DDIT International Taxation, Bangalore

In the result, the assessee’s appeals are dismissed

ITA 1525/BANG/2010[2007-08]Status: DisposedITAT Bangalore10 Mar 2017AY 2007-08

Bench: Shri A.K. Garodia & Shri Vijay Pal Rao

For Appellant: Shri Sampath Raghunathan, AdvocateFor Respondent: Ms. Neera Malhotra, CIT -2 & Smt. Swapna Das, JCIT-2
Section 143(3)

…as in the case of M/s. Food World Supermarkets Ltd. Vs. DDIT (I.T) 174 TTJ 859 wherein this Tribunal has decided this issue against the assessee by following the decision of Hon'ble Delhi High Court in the case of Centrica India Offshore Pvt. Ltd. Vs. DCIT 364 ITR 336; The learned Authorised Representative has referred to the decision of Centrica India Offshore Pvt. Ltd. Vs. DCIT (supra) and submitted that in the said case the Hon'ble High Court has taken note of fact that the seconded employees came to India on deputation for a short period and therefore the decision of the Hon'ble High Court is distinguish…

Intel Corporation, Bangalore vs. Dy. Dir I.T., Bangalore

In the result, the appeal of the assessee is partly allowed

ITA 1486/BANG/2013[2008-09]Status: DisposedITAT Bangalore30 Sept 2016AY 2008-09

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Koushik Muharjee, C.AFor Respondent: Smt. Swapna Das, JCIT (D.R)
Section 9(1)(vii)

…agreement and found that the payment in question is FTS and consequently chargeable to tax in India. He has further submitted that there is no difference between the Indo- USA DTAA and Indo-UK DTAA as it was in the case of Centrica India Pvt. Ltd. Vs. CIT 364 ITR 336 (Del) wherein the Hon'ble Delhi High Court has held that the payment on account of salary to the seconded employees is in the nature of FTS. The learned Departmental Representative has further submitted that an identical issue has been considered by the co- ordinate bench of this Tribunal in the case of Food World Supermarkets Ltd. Vs. DCIT 174…

Joint DIT(It)-2, Mumbai vs. Saipem S.A., Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 1726/MUM/2011[2005-06]Status: DisposedITAT Mumbai17 Jun 2016AY 2005-06

Bench: S/Shri B.R. Baskaran (Am) & C.N.Prasad (Jm)

Section 195Section 9

…related parties. He submitted that the deputed employees, i.e., the expatriates remained as employees of the assessee company even after their deputation to India. He submitted that the Hon’ble Delhi High Court has held in the case of Centrica India Offshore (364 ITR 336) has held that the salary paid to expatriates shall be taken as part of fee for services. Accordingly he submitted that the splitting up of the fees into several components like Fees, living allowances and reimbursement of expenses should be ignored and entire receipts should be taken as forming part of fees only. 6 M/s. Saipem S.A. 6. On the c…

M/S Balmer Lawries & Co. Ltd., Kolkata vs. Income Tax Officer(It) WD-1(1), Kolkata

In the result, assessee’s appeal stands allowed

ITA 2079/KOL/2014[2012-2013]Status: DisposedITAT Kolkata27 Apr 2016AY 2012-2013

Bench: Shri Mahavir Singh & Shri Waseem Ahmedassessment Year :2012-13 M/S Balmer Lawrie & Co. V/S. Income Tax Officer Ltd., 21, N.S.Road, (International Taxation), Kolkata-700 001 Ward-1(1), Aayakar [Pan No. Aabcb 0984 E] Bhawan (Poorva), 2Nd Floor, R. No.215, 110, Shanti Pally, Kolkata- 700 107 .. अपीलाथ" /Appellant ""यथ"/Respondent Shri M.K.Poddar, Sr-Advocate अपीलाथ" क" ओर से/By Appellant Shri C.P.Bhatia, Jcit-Dr ""यथ" क" ओर से/By Respondent 18-02-2016 सुनवाई क" तार"ख/Date Of Hearing 27-04-2016 घोषणा क" तार"ख/Date Of Pronouncement

Section 195Section 201(1)Section 5(2)(b)

…decision has no application in the instant case. ITA No.ITA No.2079/Kol/2014 A.Y. 2012-13 M/s Blmer Lawrie & Co. Ltd. v. ITO(IT) Wd-1(1), Kol. Page 44 27. The seventh decision of the Hon’ble Delhi High Court in Centrica India Offshore Pvt. Ltd. v. CIT (2014) 364 ITR 336 (Del), cited by the Revenue, is again distinguishable on facts. There the Hon’ble High Court held that payments made by the Indian assessee by way of fee for technical services rendered to it in connection with assisting it in conducting its business of quality control and management was liable to tax in India; and therefore there was requirement…

M/S Foodworld Supermarkets Ltd., Bangalore vs. Dy. DIT, Bangalore

In the result, the appeal filed by the assessee is partly allowed

ITA 1356/BANG/2013[2008-09]Status: DisposedITAT Bangalore28 Oct 2015AY 2008-09

Bench: Shri Vijaypal Rao & Shri Jason P Boazita Nos.1356 & 1357/Bang/2013 (Asst. Year – 2008-09) M/S Food World Supermarkets Ltd., No.740, Eshwari Industrial Estate, Gate No.2, Hulimavu, Bannergatta Road, Bangalore-560 076. . Appellant Vs. The Dy. Director Of Income-Tax, (International Taxation) Circle-I(1), Bangalore. . Respondent Appellant By : Shri Padam Chand Khincha, Ca Respondent By : Shri Saravanan B, Jcit Date Of Hearing : 15-09-2015 Date Of Pronouncement : 28-10-2015 O R D E R

For Appellant: Shri Padam Chand Khincha, CAFor Respondent: Shri Saravanan B, JCIT
Section 192Section 195Section 201Section 201(1)Section 9(1)(vii)

…IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH ‘A’ BEFORE SHRI VIJAYPAL RAO, JUDICIAL MEMBER AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER ITA Nos.1356 & 1357/Bang/2013 (Asst. Year – 2008-09) M/s Food world Supermarkets Ltd., No.740, Eshwari Industrial Estate, Gate No.2, Hulimavu, Bannergatta Road, Bangalore-560 076. . Appellant Vs. The Dy. Director of Income-tax, (International Taxation) Circle-I(1), Bangalore. . Respondent Appellant by : Shri Padam Chand Khincha, CA Respondent by : Shri Saravanan B, JCIT Date of Hearing : 15-09-2015 Date of Pronouncement : 28-10-2015 O R D E R PER SHRI VIJAYPAL RAO, JUD…