{"id":624,"date":"2015-11-21T13:01:41","date_gmt":"2015-11-21T13:01:41","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=624"},"modified":"2021-11-01T13:12:42","modified_gmt":"2021-11-01T07:42:42","slug":"sum-paid-to-united-state-of-america-based-company","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/sum-paid-to-united-state-of-america-based-company\/","title":{"rendered":"Sum paid to united state of america based company"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69db7d32a6583\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69db7d32a6583\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/sum-paid-to-united-state-of-america-based-company\/#SUM_PAID_TO_UNITED_STATE_OF_AMERICA_BASED_COMPANY_TO_REVIEW_DESIGN_OF_CRANES_COULD_BE_%E2%80%98FTS_IF_MAJOR_CHANGES_WERE_SUGGESTED_IN_ITS_DESIGN\" title=\"SUM PAID TO UNITED STATE OF AMERICA BASED COMPANY . TO REVIEW DESIGN OF CRANES COULD BE &#8216;FTS&#8217; IF MAJOR CHANGES WERE SUGGESTED IN ITS DESIGN\">SUM PAID TO UNITED STATE OF AMERICA BASED COMPANY . TO REVIEW DESIGN OF CRANES COULD BE &#8216;FTS&#8217; IF MAJOR CHANGES WERE SUGGESTED IN ITS DESIGN<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/sum-paid-to-united-state-of-america-based-company\/#Gujarat_Pipavav_Port_Ltd_v_ITO_International_Taxation_Mumbai_ITAT_ITA_No_7877_of_2010_Date_of_Decision_August_31_2015\" title=\"Gujarat Pipavav Port Ltd. v. ITO (International Taxation), [Mumbai ITAT] ITA No. 7877 of 2010, Date of Decision: August 31, 2015\">Gujarat Pipavav Port Ltd. v. ITO (International Taxation), [Mumbai ITAT] ITA No. 7877 of 2010, Date of Decision: August 31, 2015<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/sum-paid-to-united-state-of-america-based-company\/#FACTS_OF_THE_CASE\" title=\"FACTS OF THE CASE\">FACTS OF THE CASE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/sum-paid-to-united-state-of-america-based-company\/#DECISION_OF_THE_TRIBUNAL\" title=\"DECISION OF THE TRIBUNAL\">DECISION OF THE TRIBUNAL<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<figure id=\"attachment_9043\" aria-describedby=\"caption-attachment-9043\" style=\"width: 745px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/39.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9043\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/39.png\" alt=\"www.carajput.com; Business Setup\" width=\"745\" height=\"440\" \/><\/a><figcaption id=\"caption-attachment-9043\" class=\"wp-caption-text\">www.carajput.com; Business Setup<\/figcaption><\/figure>\n<h1><span class=\"ez-toc-section\" id=\"SUM_PAID_TO_UNITED_STATE_OF_AMERICA_BASED_COMPANY_TO_REVIEW_DESIGN_OF_CRANES_COULD_BE_%E2%80%98FTS_IF_MAJOR_CHANGES_WERE_SUGGESTED_IN_ITS_DESIGN\"><\/span><span style=\"color: #000080;\"><strong>SUM PAID TO UNITED STATE OF AMERICA BASED COMPANY . TO REVIEW DESIGN OF CRANES COULD BE &#8216;FTS&#8217; IF MAJOR CHANGES WERE SUGGESTED IN ITS DESIGN<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Gujarat_Pipavav_Port_Ltd_v_ITO_International_Taxation_Mumbai_ITAT_ITA_No_7877_of_2010_Date_of_Decision_August_31_2015\"><\/span><span style=\"color: #ff9900;\"><strong>Gujarat Pipavav Port Ltd. v. ITO (International Taxation), [Mumbai ITAT] ITA No. 7877 of 2010, Date of Decision: August 31, 2015<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"FACTS_OF_THE_CASE\"><\/span><strong><span style=\"color: #808000;\"><span style=\"text-decoration: underline;\">FACTS OF THE CASE<\/span><\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The assessee is a resident Indian Company in terms of section 6 of the Act and is in the business of developing, constructing, operating and maintaining the port in Gujarat.<\/p>\n<p style=\"text-align: justify;\">The assessee had entered into a contract for purchase of cranes from M\/s ZPMC, China. These cranes were supposed to be manufactured in China itself and on completion, ought to be imported in India.<\/p>\n<p style=\"text-align: justify;\">The assessee engaged M\/s Liftech Consultants Inc., a company registered in USA, USA tax resident for review of design of the cranes which were to be supplied by the Chinese concern M\/s ZPMC.<\/p>\n<p style=\"text-align: justify;\">The assessee made payments to the said M\/s ZPMC for supply of goods and services as per purchase contract for installation and commission.<\/p>\n<p style=\"text-align: justify;\">It also paid for technical consultancy and engineering services availed from M\/s Liftech Consultants Inc., USA with regard to quality control of the cranes.<\/p>\n<p>More read for related blogs are:<\/p>\n<ul>\n<li><strong><a href=\"https:\/\/carajput.com\/publications\/effect-of-gst-on-advertising-and-cinema-induatry.pdf\">Effect of GST on Advertisement and Cinema Industry<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/publications\/gst-impact-on-import-and-exports.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/gst-impact-on-import-and-exports.pdf\">GST Impact on Import and Export\u00a0<\/a><\/strong><\/li>\n<li><strong>\u00a0<a href=\"https:\/\/www.caindelhiindia.com\/blog\/application-of-gst-on-contribution-by-rwa-members\/\">GST<\/a> Impact on Real Estate\u00a0<\/strong><\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"DECISION_OF_THE_TRIBUNAL\"><\/span><strong><span style=\"color: #808000;\"><span style=\"text-decoration: underline;\">DECISION OF THE TRIBUNAL<\/span><\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The Appellate Tribunal held that the service to be performed by M\/s Liftech Consultant Inc., USA was more of a reviewing the design.<\/p>\n<p style=\"text-align: justify;\">The power of review is something more than the power of supervision. However, it is something less than the development and transfer of services and design.<\/p>\n<p style=\"text-align: justify;\">If it is only suggestions given, then it will be review but if the M\/s Liftech Consultant Inc., USA has forwarded to implement those suggestions on behalf of the assessee and have improvised the design or brought any major change in the design, then such suggestions would amount to transfer of technical services and design, which would be more than the power of review and would attract Article 12 of the India-US DTAA Treaty.<\/p>\n<p style=\"text-align: justify;\">The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact:\u00a0<a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0\u00a0or call at 9555555480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SUM PAID TO UNITED STATE OF AMERICA BASED COMPANY . TO REVIEW DESIGN OF CRANES COULD BE &#8216;FTS&#8217; IF MAJOR CHANGES WERE SUGGESTED IN ITS DESIGN Gujarat Pipavav Port Ltd. v. ITO (International Taxation), [Mumbai ITAT] ITA No. 7877 of 2010, Date of Decision: August 31, 2015 FACTS OF THE CASE The assessee is a &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43,9],"tags":[3485,3483,3484],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/624"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=624"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/624\/revisions"}],"predecessor-version":[{"id":889,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/624\/revisions\/889"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}