Presentation made in International tax conference organised by WIRC on \'international tax issues in Entertainment industry\'.

1. International Tax Issues in
Entertainment Industry and
Profit Attribution to Agency
PE
Western India Regional Council - ICAI,
Intensive Study Course on International
Taxation, Mumbai
5 July 2011
CA Romesh S A Sankhe

2. Contents
Sector Outlook
International Tax Issues ~ Entertainment Industry
Agency PE and Profit Attribution
Tax Planning Avenues
Direct Taxes Code
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3. Sector Outlook | Industry Growth
Media & Entertainment Industry in India
1500 1275
1104 Size (in INR Billions)
957
1000 834
587 652 738
500 Projected CAGR
growth of 14%
0
2009 2010 2011 2012 2013 2014 2015
Source: FICCI-KPMG report on Entertainment 2011
• Largest film producing market in the world with over 1,000 films released
every year and more than 3 billion tickets sold annually
• The number of TV channels grown from 5 (1991) to 550 plus (2011), more
than 50% were added in the last five years
• With successful hosting of ICC Cricket World Cup and annual Indian
Premier League (IPL) along with upcoming Formula One Grand Pix (F1
Race) the sports entertainment industry in India is on rise
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4. Sector Outlook | Global Association
• India’s association with overseas entertainment industry is growing over
the years
• “Slumdog Millionaire” the film based in India and shot in India won eight
academy awards (Oscar) including best film
• Awards for best original score, best song, best lyrics and best sound
mixing went to four Indian artists
• “Robot (Endhiran)” the highest grosser Indian film collected over INR 375
crores, in which costumes, special effects, stunts, animations were
executed by foreign professionals
• Over 65 overseas players participates in a mega event of IPL which is for
two months every year
• International sensations such as Akon, Bryan Adams, Ricky Martin all
had their concerts in various cities of India and more such artists will be
visiting India in coming months such as Lady Gaga, Shakira, etc.
• All are targeting the 700 million plus Indian population below 30
• F1 Race circuit in India is scheduled at Noida in October 2011
With second largest population in the world and growing per capita
income levels, India has become one of the top target market for global
entertainment industry
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5. International tax issues
in Entertainment
industry
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6. International Film Co-production (1)
• Benefits of international film co-production are as under:
• the ability to pool financial resources,
• access to the partner government's incentives and subsidies available
under film co-production treaty,
• India has a film co-production treaty with Brazil, France, Germany, Italy,
Switzeland, United Kingdom, etc.
• access to the partner's market, or to a third market,
• access to a particular project initiated by the partner,
• cultural benefits; and
• the opportunity to learn from the partner
• Possible tax implications in India on the co-production agreement
• Exposure to constitution of ‘Association of Persons (AOP)’
• If not deemed as AOP, then the foreign resident is exposed to constitution
of Permanent Establishment (PE) such as Fixed base PE, Service PE, etc.
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7. International Film Co-production (2) | Taxation of AOP
Key tax implications are explained hereunder in brief:
Consortium AOP
• Status & • Not treated as ‘separate entity’ • Treated as a separate taxable
taxation and hence profits & gains are entity and hence entire profits
taxable in the hands of each of the project is taxable at
member separately maximum rate of 30.90%/
32.45%/42.02%
• Treatment of • Losses, if any, will be eligible • Losses, if any, will not be
Losses for set off in the hands of each eligible for set off in the hands
member against the gains from of members, due to separate
its other business income, entity treatment
• Head office • Deduction of common • Deduction of common
expenses business expenses possible business expenses difficult
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8. International Film Co-production (3) | Taxation of AOP
Consortium AOP
• Applicability of • Each member can avail the • Treated as a separate taxable
tax treaty treaty benefits as per its entity, hence each member is
eligibility not eligible for treaty benefits
• Treatment of • Members are eligible for tax • May not be eligible for the
foreign tax credit in their host country foreign tax credit
credit
• Remuneration • Cross charges may be • Remuneration to members is
cross charges deductible not allowed
• Taxability of
global income • Not possible for non-residents • May be treated as resident,
hence possible
If co-production contracts are indivisible contracts then it may result in
significant tax inefficiencies
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9. International Film Co-production (4) |Alternate structures
Comparison of key tax imperatives between these structures is as under;
Particulars AOP LLP Ind. Co.
Maximum rate of tax on net profits incase of 30.90% 30.90% 32.45%
foreign resident members
Maximum rate of tax on net profits incase of 42.02% 30.90% 32.45%
foreign resident companies as members
Payment to corporate members for services Not allowed Not allowed Allowed
rendered by them
Payment of interest on capital Not allowed Allowed up Not
to 12% allowed
MAT @16.22%, DDT@16.22% & Deemed Not Not Applicable
dividend distribution tax applicable applicable
Liability of members Unlimited Limited Limited
Perpetual succession No Yes Yes
Limited Liability Partnerships (LLP) seems more favorable, however
foreign participation in LLP can only be possible in open sectors after
government’s approval
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10. International Film Co-production (5) | LLP
LLPs brought under the ambit of Alternate Minimum Tax (AMT) from
FY 2011-12
• Rate of tax = 19.06% on Adjusted Total Income (ATI)
• ATI = Total taxable income before deduction under chapter VI A or
section 10AA [profit linked incentives]
• AMT Credit = AMT less regular income tax
• Credit carry forward = Ten years
Some key business advantages
• Limited liability
• Option of cash accounting
• No mandatory 10% transfer to reserve unlike companies
• No dividend distribution tax
• Simpler entry and exist formalities
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11. International Film Co-production (6) | LLP
Incomes which are still out of AMT are as under:
Stream of income Normal tax Minimum Alternate
Alternate Tax Minimum
(Company) Tax (LLP)
Businesses income under Nil 20% Nil
investment linked
incentives
Capital gains exempt under Nil 20% Nil
section 10(38)
Dividends from foreign 15% 20% Nil
subsidiary
Loss under income tax Act Nil 20% Nil
but profits as per books
May still be a useful alternative for holding companies, business
availing investment linked incentives or normal tax benefits, etc.
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12. Shooting of Films in India
• Section 9(d) - No income accrued on shooting of films in India, if
• The producer is
• An Individual who is not a Citizen of India
• A firm or company not having any partner/shareholder who are citizen or resident
of India
• Producer’s operations are confined only to ‘shooting of films’ in India
• Examples: Mission Impossible 4, Singularity, Eat Pray love, Slumdog
Millionaire, The Mighty Heart, etc.
Exhibition of Films in India
• Section 9(1)(vi) - Explanation 2 specifically excludes consideration
received towards sale, distribution or exhibition of cinematographic
films from the ambit of royalty
• Whether the same be taxable under 9(1)(i) due to ‘business connection’?
• Whether the consideration towards Video rights, broadcasting rights, DTH
rights or music rights may still be taxable as ‘royalty’?
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13. Production of Films - Indian branch (1)
• At the initial stages of Indian business, the production of movies may
be undertaken by the foreign companies through its Indian branch
• Branch constitutes fixed base PE in India and hence the foreign company
will be liable to tax both under the Act as well as tax treaty
• Therefore, foreign producers of the Indian films will be governed by the
provisions of the income tax Act
• Section 285B - Submission of statement by producers of films
• Statement in form 52A to assessing officer per film per year, within 30 days
from end of the financial year or completion of the film, whichever is earlier
• Stating the details of persons to whom the aggregate annual payments
exceeds ` 50,000
• Failure to comply may attract penalty of ` 100 per day under 272A
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14. Production of Films - Indian branch (2)
• Rule 9A - Deduction of ‘Cost of Production’ for film producer
• Outcome of exercise of power given to CBDT u/s 295 (1)
• Recognizes the special characteristics of the production expenses which
may spread over a period beyond a year
• Deduction Criteria
Censor Exhibition/ Release 90 days Deduction of ‘Cost of
Board Sale of rights before end of the production’
Certification financial year
Full Deduction
Extent of amount
realized
No Deduction
• ‘Cost of Production’ includes all expenditure incurred on production of
the film, except
• Expenditure incurred on preparation of positive films
• Expenditure incurred on advertisement of the film after Censor certificate
• Subsidy received from the government will be reduced from the cost
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15. Production of Films - Indian branch (3) | Other issues
• Exhibition on a commercial basis’ - Whether it includes paid preview,
direct online release, direct exhibition on Television, etc.
• Yes, as per Vishesh Films Pvt. Ltd vs. Dy. CIT (Mumbai ITAT) ITA No 5569 &
5570/Mum/2004 dated 27-08-2008
• The requirement of Rule 9A is exhibition of film and the mode has not been
prescribed
• Hence exhibition film on Television on commercial basis clearly falls within the
ambit of Rule 9A
• ‘Remuneration to actors, artists, etc. paid in Kind’ - Whether liable to
TDS/withholding tax?
• Yes, as per Kanchganga Seas Foods Ltd. v. CIT (SC) [2010-TII-03-SC-INTL] and
Mr. Amitabh Bachhan Vs DCIT (Mumbai Tribunal) ITA No 1584 & 2509 /Mum/2006
dated 29th November 2006
• Remuneration in kind should be properly accounted at its fair market value
• It should be added to the Cost of production and the TDS needs to be deducted
• Precaution while computing cost of production - Rule 9A may not
override other provisions of Act, hence the deduction may be subject to
other conditions such as compliance of section 40(a)(ia), 40A, 43B, etc.
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16. Film Artist and Other Professionals | Non-residents
• Income tax Act
• No specific section or rule dealing with taxation of artist and professionals
in the entertainment industry except CBDT circular No. 787 dated 10
February 2000
• Artist / Others
• If covered under ‘fees for technical services’ [section 9(1)(vii)] or
‘royalty’ [section 9(1)(vi)] then taxable at his/her gross income
@10.30% in the absence of his/her fixed base and availability of PAN
• In all the other cases, may be taxable at net income pertaining to
operations carried in India @30.90%, also may have to file return and
comply with other norms such as tax audit, etc.
• Tax treaty
• Artist - Article dealing with “Artists and athletes” generally bestows the
right of taxation to the source state i.e. Indian income tax Act
• Others - Those not covered under the term “Artist” may get covered
under article dealing with “Independent personal services” and generally
may not be taxable in India in the absence of their fixed base and number
of days of stay below the prescribed limit generally 180 days
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17. Sportsperson and Sports Association (1) | Non-residents
• Income tax Act - Section 115BBA and CBDT circular No. 787 (supra)
• Sportsperson - Person, who is neither Citizen nor resident of India, may
liable to tax on gross basis @10.30%, subject to the availability of PAN
on their income earned from participation in any game in India,
advertisement and contribution of articles relating to any game in India
• Sports Association - Association, who is not resident of India, may liable
to tax on gross basis @10.30%, subject to the availability of PAN on their
income earned in relation to any game played in India
• Withholding of tax on above income covered under section 194E
• No income tax return needs to be filed by such Sportspersons and Sports
associations, if Indian income is restricted to above mentioned sources
• Taxation of others involved in sports
• Sportsperson is not defined under the Act, generally it means “a person
who takes part in sports”
• Persons such as Coaches, Supports staff, Umpires, Commentators.
Cheerleaders, etc. may not be covered under section 115BBA
• If covered under ‘fees for technical services’ [section 9(1)(vii)] then taxable at
his/her gross income @10.30% in the absence of his/her fixed base and
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18. Sportsperson and Sports Association (2) | Non-residents
• In all the other cases, may be taxable at net income pertaining to operations
carried in India @30.90%, also may have to file return and comply with other
norms such as tax audit, etc.
• If employed by foreign company then short stay exemption may be availed
according to section 10(6)(vi)
• Tax treaty
• Sportspersons - Article dealing with “Artists and athletes” generally
bestows the right of taxation to the source state i.e. Indian income tax Act
• Sports Association - Income earned by such entities will be covered
under Article dealing with “other income” as stated in CBDT Circular No.
787 (supra)
• Others
• May get covered under article dealing with “Independent personal services”
and generally may not be taxable in India in the absence of their fixed base
and number of days of stay below the prescribed limit generally 180 days
• If employed by foreign company then exemption available under article
dealing with “Dependent personal services” subject to fulfillment of prescribed
conditions
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19. Foreign Telecasting company (1)
• Income streams of foreign telecasting companies
• Lease of decoders to cable operators
• Subscription charges for pay channel
• Advertising revenues
• Lease of decoders - May deemed to lease of commercial equipment
and hence taxable as “royalty” under the Income tax Act
• Subscription charges - May not be covered under the term “royalty”
under the Income tax Act and hence may not be taxable in the absence
of non-resident’s business connection
• Advertising revenues - Position varied over the years
• Option of presumptive taxation on deemed profits i.e. 10% of the gross
receipts meant for remittance [gross receipts excluding amounts retained
by advertising agent and Indian agent’s commission] - CBDT Circular
no.742 dated 2 May 1996 and no.765 dated 15 April 1998
• The above circulars were withdrawn vide Circular no.6/2001 dated 5 March
2001, w.e.f. 31 March 2001
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20. Foreign Telecasting company (2)
• Profit attribution incase of PE
• If non-resident’s operations are solely carried out through its PE in India
and if the PE is remunerated at arms length then no further profits could be
attributed to the non-resident operations in India, as held in
CBDT Circular no.23/1969 dated 23 July 1969
CBDT Circular No. 5/2004 dated 28 September 2004
DIT v. Morgan Stanley and Co Inc [2007] 292 ITR 416 (SC)
Set Satellite (Singapore) v. DDIT [2008] 218 CTR 452 (Bombay HC)
Worley Parsons Services Pty. Ltd [2008] 170 Taxman 91 (AAR)
Galileo International Inc v. DDIT [2009] 180 Taxman 357 (Delhi HC)
Rolls Royce Plc v. DDIT (Delhi ITAT)
Amadeus Global Travel v. DDIT (Delhi ITAT)
Circular 23/1969 was withdrawn vide Circular no. 7 dated 22 October
2009 - Whether this withdrawal will effect the above stated position ?
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21. Foreign Telecasting company (3)
• Profit attribution incase of PE
• The withdrawal of circular 23/1969 may not affect the prevailing legal
position, because:
• Most of the above rulings does not refer to Circular 23/1969 including Circular
5/2004 which is not yet withdrawn, the rulings were passed considering the
judicial position under section 9(1)(i)(a) which remains unchanged
• Supreme court in its ruling in the case of CCE v. M/s Ratan Melting and Wires
Industries [2008] 220 CTR 98 has held that:
“Circulars and instructions issued by the Board are no doubt binding in law
on the authorities under the respective statutes, but when the Supreme Court
or the High Court declares the law on the question arising for consideration, it
would not be appropriate for the Court to direct that the circular should be
given effect to and not the view expressed in a decision of this Court or the
High Court. So far as the clarifications/circulars issued by the Central
Government and of the State Government are concerned they represent
merely their understanding of the statutory provisions. They are not binding
upon the court. It is for the Court to declare what the particular provision of
statute says and it is not for the Executive. Looked at from another angle, a
circular which is contrary to the statutory provisions has really no existence in
law.”
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22. Payment for Transponder (1) | New Skies ruling
• Facilitating the Facts
signal
transmitting Satellite • Dutchco owned and operated satellites
process for telecasting companies
• Amplifying the
• These satellites were located outside
signals
India and there was no presence of
Dutchco in India
• The telecasting companies would relay
their programmes through the
communication transponders on the
satellites by using their own earth
Uplink Downlink stations to uplink and downlink the
Earth Earth signals
station station • The transmission facility was availed
of by telecasting companies according
• Encryption of data • Downlinking of the to their needs
into TV signals signals
• Uplinking of the • Distribution of
signals signals in the
footprint area
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23. Payment for Transponder (2) | New Skies ruling
• Facilitating the Issues
signal
transmitting Satellite • Whether the payment received by Dutchco
process from its customers for use of its satellite will
• Amplifying the satisfy the definition of “royalty” under the
signals India / Netherland treaty?
• Whether the services rendered by Dutchco
through its satellite amount to “secret
process” or only “process”?
• Whether the process needs to be “secret” to
be treated as “royalty”?
Definition of “royalties” in India / Netherlands
treaty:
Uplink Downlink “….means payments…. received as a
Earth Earth consideration for the use of, or the right to
use, any …., secret formula or process,
station station or for information….”
The missing comma
• Encryption of data • Downlinking of the “…., secret formula or process, ….”
into TV signals signals Should this be interpreted as:
• Uplinking of the • Distribution of A. “secret formula or secret process” ; or
signals signals in the B. “secret formula, or process” ?
footprint area What is the significance of there being no
comma after “formula”?
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24. Payment for Transponder (3) | New Skies ruling
• Facilitating the Ruling of Special Bench of the
signal
transmitting Satellite Tribunal
process • The services rendered by Dutchco
• Amplifying the
signals through its satellite amounts to a
“process”
• Payment by telecasting companies is
for the use of or right to use the
“process”
• The process in a transponder is not
secret
Uplink Downlink • Process need not be “secret” to be
Earth Earth characterized as “royalty” under the
station station treaty – i.e. interpretation B. (“secret
formula, or process”) is correct
• Encryption of data • Downlinking of the
into TV signals signals
• The payment made to Dutchco by
• Uplinking of the • Distribution of telecasting companies will be taxable
signals signals in the as “royalty”
footprint area
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25. Payment for Transponder (4) | New Skies ruling
• Facilitating the Comments
signal
transmitting Satellite • Key observations of the Tribunal:
process • The process of uplinking and
• Amplifying the downlinking is embedded in the
signals
transponder which is used by the
telecasting companies as per their
needs through the earth stations owned
by such companies
• Once the process in the transponder is
predetermined by Dutchco, it is made
available to the customers
Uplink Downlink • Dutchco has no right to interfere in the
Earth Earth transmission process
station station • Without knowing the process involved
in the transponder, the telecasting
• Encryption of data • Downlinking of the companies will not be able to telecast
into TV signals signals their programmes in the desired area at
• Uplinking of the • Distribution of the desired time
signals signals in the
footprint area
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26. Payment for Transponder (5) | New Skies ruling
• Facilitating the Comments
signal
transmitting Satellite • PanAmSat decision is overruled
process • The word “secret” does not qualify the word
• Amplifying the “process” in the royalty definition under the
signals provisions of the Act as well as Tax Treaty
• Skycell decision is distinguished
• In telecommunication process, customer
merely makes a request to the service
provider and does not take part in the
process unlike the telecasting process
Uplink Downlink • ISRO decision is distinguished
Earth Earth • The ruling in ISRO was in context of a
station station navigational transponder which is different
from the communication transponder used
• Encryption of data • Downlinking of the by the telecasting companies
into TV signals signals
• Uplinking of the • Distribution of
signals signals in the
footprint area
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27. Payment for Transponder (6) | After New Skies ruling
Verizon Communication Singapore (Chennai ITAT) [January 2011]
• While analyzing payments made by Indian customers towards International
Private Leased Circuit or dedicated bandwidth, the tribunal observed as under:
• This capacity is made available on a dedicated basis to the customer for the entire
contract period, usually a year
• The amount received by tax payer from Indian customers is also for the use of a
‘process’ and would therefore qualify as royalty under Act as well as treaty
• The Delhi special bench ruling in the case New Skies satellite has been referred
and relied upon
Asia Satellite Telecommunication (Delhi HC) [January 2011]
• The High Court observed that:
• The transponder is not distinct and separate from the satellite
• The transponder is situated in orbit and merely because the satellite had a footprint in
India would not mean that the process took place in India
• The payment can not be deemed to be the payment for the process
• Hence, payment for transponder are not ‘royalty’ under the Act
• However, the special bench ruling in the case New Skies satellite has not been
specifically discussed, reliance placed on Isro (AAR), Ishikawajima Harima
27 Heavy Industries (SC) and OECD commentary CA Romesh S A Sankhe

28. Tax Planning Avenues
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29. Intangible Management | Overseas IPR Company
Step 1 Step 2
Benefits of Royalty
IPR holding co i. WHT of 10.51% on repatriation IPR holding co
in offshore instead of 16.22% on DDT in offshore
jurisdiction ii. Claim of tax credit possible
jurisdiction
unlike DDT
iii. Deduction of expenses can be
claimed unlike DDT
iv. Reduction in overall group
taxation
Vital considerations before
planning
Payment of Sale of IP i. Domestic laws direct as well as Non Payment of
sale located in indirect of all the countries exclusive royalty
proceeds India ii. Other incidental taxes such as transfer of
R&D cess etc. IP
iii. IP valuation
iv. Transfer Pricing
v. Logistics
vi. General Anti Avoidance rules
vii. Controlled Foreign Company
rules
A Ltd A Ltd
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30. Onshore services (1)
Whether onshore services is taxed in India ?
• “Fees for technical services” under the Act includes any payment for
rendering of any managerial, technical or consultancy services
• Hence, taxed @10.51% on gross income under the Act in the absence of PE
Avenues for Mitigating onshore services taxation in India ?
• Under certain tax treaties of India, services which does not make
available any technical knowledge, skill, etc. are excluded from purview of
FTS and some tax treaties does not have FTS and service PE clause
• Hence services procured from tax residents of these countries may not be
liable to withholding tax in the absence of non-resident’s fixed base PE in
India
Tax planning is vital in terms cost saving, as most of the times
service recipient bears the tax liability
30 CA Romesh S A Sankhe

31. Onshore services (2)
B Inc B Inc
Payment of fees
Onshore 100, no WHT (if no
How can we save
services PE) due to
the tax of 10.51%
supply tax treaty
Operating co
Onshore Payment of Onshore in offshore
services services 100 jurisdiction
supply + Withholding tax Vital considerations
(Grossing up) 10.51 before planning
------------------------------- Payment of fees
i. Domestic laws direct
Total cost to as well as indirect of Onshore 100, no WHT (if
the project 110.51 all the countries services no PE) due to
ii. Other incidental taxes supply tax treaty
such as personnel
etc.
iii. Transfer Pricing
iv. Logistics
v. General Anti
Avoidance rules
A Ltd A Ltd
31 CA Romesh S A Sankhe

32. Lease of equipment (1)
Whether lease of equipments is taxed in India ?
• After the amendment in finance Act 2002, “Royalty” under the Act includes
payment for use of right to use of any industrial, commercial or scientific
equipments,
• Hence, taxed @10.51% on gross income under the Act in the absence of PE
Avenues for Mitigating taxation on lease of equipments in India ?
• Most of India’s tax treaties on the line of the domestic law, includes payment
for equipment in the definition of royalty except some countries,
• Hence, equipments procured from tax resident of the above countries may not
be liable to withholding tax in the absence of non-resident’s PE in India
Tax planning is vital in terms cost saving, as most of the times
lessee bears the tax liability while leasing the equipments
32 CA Romesh S A Sankhe

33. Lease of equipment (2)
B Inc B Inc
Payment of Rent
How can we save Supply of 100, no WHT (if no
equipment PE) due to
the tax of 10.51%
tax treaty
Operating co
Supply of Payment of Rent 100 in offshore
equipment + Withholding tax jurisdiction
(Grossing up) 10.51
------------------------------- Vital considerations
Total cost to before planning Payment of
the project 110.51 i. Domestic laws direct Supply of Rent
as well as indirect of equipment 100, no WHT (if
all the countries , no PE) due to
ii. Other incidental taxes tax treaty
such as stamp duty
etc,
iii. Transfer Pricing,
iv. Logistics
v. General Anti
A Ltd Avoidance rules
A Ltd
33 CA Romesh S A Sankhe

34. Direct Taxes Code
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35. Key amendments for Entertainment industry (1)
Tax provisions Income tax Act DTC
Use or right to use of Not taxable in certain Included in ‘royalty’
transmission by satellite, cable, cases, based on the
optic fiber or similar technology judicial precedents
the transfer of all or any rights Not taxable due to specific Included in ‘royalty’
in respect of cinematographic exemption vide explanation
films 2 to section 9(1)(vi)
Shooting of films in India by Not taxable due to specific There is no specific
non-resident who is not a Indian exemption vide section exemption
citizen 9(1)(d)
Deduction to film producer and Rule 9A and Rules are yet to be notified
film distributor Rule 9B
Income earned from house May be considered as Included in ‘income from
property such Multiplex, studio, business income, based on letting of house property’ and
stadium, etc. the judicial precedents the standard deduction
reduced to 20%
Development and transfer of a Not taxable, based on the Included in ‘fees for technical
design, drawing, plan or judicial precedents services’
software
35 CA Romesh S A Sankhe

36. Key amendments for Entertainment industry (2)
• Increase in withholding tax rate from 10.51% to 20% for royalty and fees
for technical services - In the following cases the payments to non-residents
may liable to higher withholding tax:
• India has more than 75 tax treaties, out of which over 30 tax treaties provide for a
withholding tax rate of 15% to 20%
• Resident from a non tax treaty country may liable to higher withholding tax rate of
20%
• Permanent establishment - No threshold limit has been specified for
construction site, building site, services rendered etc. hence following
circumstances may lead to constitution of PE of foreign residents from a non-
tax treaty country:
• Building site, construction site, rendering of services or leasing of equipments within
India for a day or more
Gross-up contracts with the non-residents will have be analysed
carefully, as the same may increase the cost of overseas transactions
36 CA Romesh S A Sankhe

37. Open house ..
37 CA Romesh S A Sankhe

38. CA Romesh S A Sankhe
(M) 9892 892504
(E) romesh_sankhe@rediffmail.com
The views expressed in this presentation are solely that of the speaker and do not constitute any kind of professional advice. These
views or opinion expressed in this presentation should not be applied or used without a prior professional advice, as the review of the
facts and prevailing judicial position is of utmost importance in the analysis of tax implications.
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