Singapore-based MasterCard Asia Pacific Ltd.<\/a> said that according to an Authority of Advance Ruling<\/a> (AAR) order of June 2018 in favour of the income tax department, the company had a permanent establishment in India and was therefore paying income tax in line with the order.
The Delhi AAR had ruled that MasterCard had fixed place, service and dependent agent permanent establishments in India under Article 5 of the India-Singapore Double Tax Avoidance Agreement in respect of services while using a global network and infrastructure to process card payment transactions for customers in India.
The company has challenged the AAR’s ruling and the matter is pending.
“Since the tax is already being paid, equalisation levy cannot be sought as it would lead to double taxation,” a lawyer representing the company told ET, asking not to be identified.
The company referred to Section 165A (2) (i) of the Income Tax Act, which states that the levy is not payable when a permanent establishment exists.
Senior lawyer Harish Salve is arguing the case for MasterCard, being heard by the division bench of Justice Manmohan and Justice Sanjeev Narula. The Delhi High Court has issued a notice to the income tax department and will hear the case on August 18.
India began imposing an equalisation levy of 2% on purchases through foreign e-commerce platforms with access to the domestic market from April 1. An equalisation levy, or so-called Google Tax<\/a>, was already imposed on digital advertising at 6% since 2016.
Experts said that while other e-commerce companies have sought clarity from the government on applicability of the levy, the situation for MasterCard is unique because it was not directly challenging the equalisation levy.
“Since MasterCard has already challenged the ruling of AAR, which stated that it has a PE in India and the matter is sub-judice, it is a peculiar situation wherein the levy will be subject to the outcome of the petition which is pending with the Delhi High Court,” said Amit Maheshwari, tax partner at AKM Global.
MasterCard has pro-actively asked for a stay on collection of the levy on services that it provides in India, he added.
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万事达卡感动了德里高等法院寻求继续支付平衡税在数字交易为由,将导致双重征税。
新加坡万事达卡亚太有限公司说,据一位推进执政权威(AAR)的2018年6月的所得税,该公司已在印度建立一个永久的,因此符合订单支付所得税。
德里AAR裁定,万事达卡有固定的地方,永久依赖服务和代理机构在印度印度-新加坡双避税第五条协议的服务而使用全球网络和基础设施在印度为客户处理信用卡付款交易。
公司已经挑战了AAR的裁决,是悬而未决。
“既然已经被支付的税收,无法寻求平衡税将导致双重征税,”一名律师代表公司告诉ET,要求不透露姓名。
该公司称为Section 165 (2) (i)的所得税法,即应付税不是当建立一个永久的存在。
高级律师培训的药膏是争论的万事达卡,被司法部门长椅上听过印度和正义(Sanjeev Narula。德里高等法院已发布了一份通知所得税部门并将于8月18日听到的情况。
印度开始实行一个平衡征收2%的购买通过与进入国内市场的国外电子商务平台从4月1日。一个平衡税,或所谓的谷歌税已经对数字广告自2016年为6%。
专家表示,尽管其他电子商务公司寻求清晰的政府征收的适用性,万事达的情况是独特的,因为它不是直接挑战平衡税。
“既然万事达卡已经挑战了AAR的裁决,它说它有一个PE在印度和重要悬案,这是一个奇怪的情况在利维将受到请愿书的结果与德里高等法院,等待“Amit Maheshwari说,税务合伙人AKM全球。
万事达卡主动要求继续收集的征税服务,它提供了在印度,他补充说。
新加坡万事达卡亚太有限公司说,据一位推进执政权威(AAR)的2018年6月的所得税,该公司已在印度建立一个永久的,因此符合订单支付所得税。
德里AAR裁定,万事达卡有固定的地方,永久依赖服务和代理机构在印度印度-新加坡双避税第五条协议的服务而使用全球网络和基础设施在印度为客户处理信用卡付款交易。
公司已经挑战了AAR的裁决,是悬而未决。
“既然已经被支付的税收,无法寻求平衡税将导致双重征税,”一名律师代表公司告诉ET,要求不透露姓名。
该公司称为Section 165 (2) (i)的所得税法,即应付税不是当建立一个永久的存在。
高级律师培训的药膏是争论的万事达卡,被司法部门长椅上听过印度和正义(Sanjeev Narula。德里高等法院已发布了一份通知所得税部门并将于8月18日听到的情况。
印度开始实行一个平衡征收2%的购买通过与进入国内市场的国外电子商务平台从4月1日。一个平衡税,或所谓的谷歌税已经对数字广告自2016年为6%。
专家表示,尽管其他电子商务公司寻求清晰的政府征收的适用性,万事达的情况是独特的,因为它不是直接挑战平衡税。
“既然万事达卡已经挑战了AAR的裁决,它说它有一个PE在印度和重要悬案,这是一个奇怪的情况在利维将受到请愿书的结果与德里高等法院,等待“Amit Maheshwari说,税务合伙人AKM全球。
万事达卡主动要求继续收集的征税服务,它提供了在印度,他补充说。
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