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Joint Official Liquidator Of Bank ... vs Joint Cit on 25 November, 2005
Cggveritas Services Sa, Gurgaon vs Assessee on 31 March, 2003
Ibm World Trade Corporation , ... vs Assessee on 29 March, 2012
Sikkim Janseva Pratisthan (P) ... vs Dy Cit on 15 December, 2004
In Re: No. P/6 Of 1995 vs Unknown on 8 September, 1995

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[Complete Act]
Central Government Act
Section 115A in The Income- Tax Act, 1995
115A. 2 Tax on dividends, royalty and technical service fees in the case of foreign companies 3 4 (1) Where the total income of-
1. Prior to the omission, section 115, as substituted by the Finance (No. 2) Act, 1962, w. e. f. 1- 4- 1962; amended by the Finance Act, 1964, w. e. f. 1- 4- 1964; substituted by the Finance Act, 1965, w. e. f. 1- 4- 1965; amended by the Finance Act, 1966, w. e. f. 1- 4- 1966; substituted by the Finance (No. 2) Act, 1971, w. e. f. 1- 4- 1972 and amended by the Finance (No. 2) Act, 1974, w. e. f. 1- 4- 1975; Finance Act, 1976, w. e. f. 1- 4- 1977 and the Finance Act, 1985, w. e. f. 1- 4- 1986, read as under:" 115. Tax on capital gains in case of companies.- Where the total income of a company includes any income chargeable under the head" Capital gains" relating to capital assets other than short- term capital assets (such income being hereinafter referred to as long- term capital gains), the income- tax payable shall be the aggregate of- (i) the amount of income- tax calculated on the amount of long- term capital gains included in the total income- (a) on so much of the amount of such long- term capital gains as relate to buildings or lands or any rights in buildings or lands, at the rate of fifty per cent; and (b) on the balance of such long- term capital gains, if any, at the rate of forty per cent; and (ii) the amount of income- tax with which it would have been chargeable had its total income been reduced by the amount of long- term capital gains referred to in clause (i)."
2. Inserted by the Finance Act, 1976, w. e. f. 1- 6- 1976.
4. Substituted by the Finance Act, 1994, w. e. f. 1- 4- 1995. Prior to the substitution, subsection (1) read as under:" (1) Subject to the provisions of 1 sub- sections (1A) and (2)], where the total income of an assessee, being a foreign company, includes any income by way of- (a) dividends; or (aa) 2 interest received from Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency; or] (ab) 3 income received in respect of units, purchased in foreign currency, of a Mutual Fund specified under clause (23D) of section 10; or] (b) 4 royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or the Indian concern after the 31st day of March, 1976, and where such agreement is with an Indian concern, 5 the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy],] the income- tax payable shall be the aggregate of- (i) the amount of income- tax calculated on the amount of income by way of dividends, if any, included in the total income, at the rate of twenty- five per cent; (ia) 6 the amount of income- tax calculated on the income by way of interest referred to in clause (aa), if any, included in the total income, at the rate of twenty- five per cent;] (ib) 7 the amount of income- tax calculated on the income in respect of units referred to in clause (ab), if any, included in the total income, at--
(a) a non- resident (not being a company) or of a foreign company, includes any income by way of--
(i) dividends; or
999999. the rate of twenty- five per cent;] (ii) 8 the amount of income- tax calculated on the income by way of royalty, if any, included in the total income, at the rate of thirty per cent;] (iii) the amount of income- tax calculated on the income by way of fees for technical services, if any, included in the total income, at the rate of 9 thirty per cent]; and (iv) the amount of income- tax with which it would have been chargeable had its total income been reduced by the amount of income referred to in clause (a), 10 clause (aa)] and clause (b). Explanation.- For the purposes of this section,- (a)" fees for technical services" shall" have the same meaning as in 11 Explanation 2] to clause (vii) of sub- section (1) of section 9; 12 13 (b)]" foreign currency" shall have the same meaning as in the Explanation below item (g) of sub- clause (iv) of clause (15) of section 10;] (c)" royalty" shall have the same meaning as in 14 [ Explanation 2] to clause (vi) of sub- section (1) of section 9."
1. Substituted for" sub- section (2)" by the Finance (No. 2) Act, 1977, w. e. f. 1- 4- 1978.
2. Inserted by the Finance Act, 1983, w. e. f. 1- 6- 1983.
3. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w. e. f. 1- 4- 1989.
4. Substituted by the Finance Act, 1983, w. e. f. 1- 6- 1983. Prior to the substitution, clause (b) read as under." (b) royalty or fees for- technical services received from an Indian concern in pursuance of an agreement made by the foreign company with the Indian concern after the 31st day of March, 1976, and approved by the Central Government;"
5. Substituted for" such agreement is approved by the Central Government" by tile Finance Act, 1992, w. e. f. 1- 6- 1992.
6. Inserted by the Finance Act, 1983, w. e. f. 1- 6- 1983.
7. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w. e. f. 1- 4- 1989.
8. Substituted by the Finance Act, 1986, w. e. f. 1- 4- 1987. Prior to the substitution, clause (ii) read as under:" (ii) the amount of income- tax calculated on the income by way of royalty, if any, included in the total income- (1) on so much of the amount of such income as consists of lump sum consideration for the transfer outside India of, or the imparting of information outside India in respect of, any data, documentation, drawing, or specification relating to any patent, invention, model, design, secret formula, or process or trade mark or similar property, at the rate of twenty per cent; (2) on the balance of such income, if any, at the rate of forty per cent;"
9. Substituted for" forty per cent", ibid.
10. Inserted by the Finance Act, 1983, w. e. f. 1- 6- 1983.
11. Substituted for" the Explanation" by the Finance (No. 2) Act, 1977, w. e. f. 14- 1977.
12. Inserted as clause (bb) by the Finance Act, 1983, w. e. f. 1- 6- 1983.
13. Relettered for" (bb)", ibid. Clause (b), as originally enacted, and omitted by the Direct Tax Laws (Amendment) Act, 1989, read as under:" (b)" foreign company" shall have the same meaning as in section 80B;"
14. Substituted for" the Explanation" by the Finance (No. 2) Act, 1977, w. e. f. 1- 4- 1977 ."
(ii) interest received from Government or an Indian concern on monies borrowed or debt incurred by Government or the Indian concern in foreign currency; or
(iii) income received in respect of units, purchased in foreign currency, of a Mutual Fund specified under clause (23D) of section 10 or of the Unit Trust of India, the income- tax payable shall be aggregate of-
(A) the amount of income- tax calculated on the amount of income by way of dividends, if any, included in the total income, at the rate of twenty per cent;
(B) the amount of income- tax calculated on the amount by. way of interest referred to in clause (ii), if any, included in the total income, at the rate of twenty per cent;
(C) the amount of income- tax calculated on the income in respect of units referred to in clause (iii), if any, included in the total income, at the rate of twenty per cent; and
(D) the amount of income- tax with which he or it would have been chargeable had his or its total income been reduced by the amount of income referred to in clause (i), clause (ii) and clause (iii);
(b) a foreign company, includes any income by way of royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or the Indian concern after the 31st day of March, 1976 , and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy, then, subject to the provisions of sub- sections (1A) and (2), the income- tax payable shall be the aggregate of,
(A) the amount of income- tax calculated on the income by way of royalty, if any, included in the total income, at the rate of thirty per cent;
(B) the amount of income- tax calculated on the income by way of fees for technical services, if any, included in the total income at the rate of thirty per cent; and
(C) the amount of income- tax with which it would have been chargeable had its total income been reduced by the amount of income by way of royalty and fees for technical services. Explanation.- For the purposes of this section,-
(a) " fees for technical services" shall have the same meaning as in the Explanation 2 to clause (vii) of sub- section (1) of section 9;
(b) " foreign currency" shall have the same meaning as in the Explanation below item (g) of sub- clause (iv) of clause (15) of section 10;
(c) " royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub- section (1) of section 9;
(d) " Unit Trust of India" means the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963 ).]
(1A) 1 Where the royalty refer- red to in clause (b) of sub- section (1) is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book to an Indian concern 2 or in respect of any computer software to a person resident in India], the provisions of sub- section (1) shall apply in relation to such royalty as if the words 3 4 the agreement is approved by the Central Government or where it] relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy] occurring in the said clause had been omitted: Provided that such book is on a subject, the books on which are permitted, according to the Import Trade Control Policy of the Government of India for the period commencing from the 1st day of April, 1977 , and ending with the 31st day of March, 1978 , to be imported into India under an Open General Licence: 5 Provided further that such computer software is permitted according to the Import Trade Control Policy of the Government of India for the time being in force to be imported into India under an Open General Licence.] Explanation 6 1].- In this sub- section," Open General Licence" means an Open General Licence issued by the Central Government in pursuance of the Imports (Control) Order, 1955 .] 7 Explanation 2.- In this sub- section, the expression," computer software" shall have the meaning assigned to it in clause (b) of the Explanation to section 80HHE.]
(2) Nothing contained in sub- section (1) shall apply in relation to any income by way of royalty received by a foreign company from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 31st day of March, 1976 , if such agreement is deemed, for the purposes of the 8 first] proviso to clause (vi) of sub- section (1) of section 9, to have been made before the 1st day of April, 1976 ; and the provisions of the annual Finance Act for calculating, charging, deducting or computing income- tax shall apply in relation to such income as if such income had been received in pursuance of an agreement made before the 1st day of April, 1976 .]
1. Inserted by the Finance (No. 2) Act, 1977, w. e. f. 1- 4- 1978.
2. Inserted by the Finance (No. 2) Act, 1991, w. e. f. 1- 4- 1991
3. Substituted for" and approved by the Central Government" by the Finance Act, 1992, w. e. f. 1- 6- 1992.
4. Substituted for" approved by the Central Government or where the agreement" by the Finance Act, 1994, w. e. f. 1- 4- 1995.
5. Inserted by the Finance (No. 2) Act, 1991, w. e. f. 1- 4- 1991
6. Renumbered, ibid.
7. Inserted, ibid.
8. Inserted by the Finance (No 2) Act, 1991, w. e. f. 1- 4- 1991
(3) 1 No deduction in respect of any expenditure or allowance shall be allowed to the assessee under sections 28 to 44C and section 57 in computing his or its income referred to in sub- section (1).
(4) Where in the case of an assessee referred to in sub- section (1),-
(a) the gross total income consists only of the income referred to in clause (a) of that sub- section, no deduction shall be allowed to him or it under Chapter VIA;
(b) the gross total income includes any income referred to in clause (a) of that sub- section, the gross total income shall be reduced by the amount of such income and the deduction under Chapter VIA shall be allowed as if the gross total income as so reduced were the gross total income of the assessee.
(5) It shall not be necessary for an assessee referred to in sub- section (1) to furnish under subsection (1) of section 139 a return of his or its income if-
(a) his or its total income in respect of which he or it is assessable under this Act during the previous year consisted only of income referred to in clause (a) of sub- section (1); and
(b) the tax deductible at source under the provisions of Chapter XVII- B has been deducted from such income.]