Back
IN THE HIGH COURT OF BOMBAY AT GOA
BHARATI DANGRE, NIVEDITA P. MEHTA
Colorcon Asia Pvt. Ltd., Through Authorized Representative Mr. Vinay Potdar – Appellant
Versus
Joint Commissioner of Income Tax, Special Range Aayakar Bhawan, Patto, Panji – Respondent
JUDGMENT :
BHARATI DANGRE, J.
1 M/s. Colorcon Asia Pvt. Limited, a Private Limited Company, incorporated under the Companies Act, 1956 and wholly owned subsidiary of Colorcon Limited, United Kingdom (Colorcon UK) , engaged in the business of manufacturing, supply and technical support of formulated film, coating systems, modified release technologies, and functional excipients for the pharmaceutical industry, has filed the present Appeal under Section 245(w) of the INCOME TAX ACT , 1961 (for short “Act”), to assail the ruling dated 27/06/2024 (impugned ruling) passed by the Board for Advanced Rulings - I, New Delhi ( in short “BFAR”) in Unique No. of the case : AAACC2281Q/2019/0020/0306 (Old No.L AAR/446/2019). The impugned ruling according to the Appellant has erroneously decided against the questions raised by it seeking an advance ruling to restrict the rate of Dividend Distribution Tax (DDT) to the extent of withholding tax rate on Dividend Income as prescribed under Article 11 of India - UK Tax Treary ( DTAA).
A : THE CHALLENGE IN THE APPEAL
2 The brief background in which the challenge is raised is set out in the Appeal and is also presented before us by the learned Senior Advoca
Dividend Distribution Tax is a tax on dividend income and is covered by the DTAA, allowing a maximum tax rate of 10% on such dividends.
DDT is tax on shareholders' dividend income collected from company; DTAA lower rates cap DDT liability under section 90(2), enabling refund of excess to paying company.
Division Bench refers to Larger Bench whether DDT on dividends to non-residents is capped by DTAA Article 11 or remains company's additional tax on profits per Section 115-O, due to conflict with pri....
DDT on dividends to non-resident shareholders under India-UK DTAA restricted to 10%; excess refundable as it constitutes tax on dividend income. No interest u/s 234B/C on unforeseeable APA incrementa....
DDT on dividends to non-residents restricted to DTAA rate (10%) as it is tax on shareholder's dividend income; prevails over domestic law. Management fees ALP restored for fresh consideration of evid....
The protocol in the DTAA allows for the automatic applicability of lower withholding tax rates based on other treaties, requiring consistent interpretation for equitable tax allocation between contra....
Point of Law : Taxation - Issuance of a certificate at a lower withholding tax rate – While interpreting international treaties including Tax treaties rules of interpretation that apply to domestic o....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
