No deduction for Rio Tinto under Income Tax Act: Delhi High Court

In am important decision, Delhi High Court ruled that even though Rio Tinto Technical Services (assessee) income in India was chargeable to tax as “business profits” under Article 7 and not as “fees for technical services” under Article 12 of the India-Australia Double Taxation Avoidance Agreement (DTAA), Section 44D of the Income Tax Act (Act) is applicable as the income received by the assessee is “fees for technical services” under Explanation 2 to Section 9(1)(vii) of the Act.

Hence, no deduction shall be allowed to the assessee.

About DSLegal

A full service international law firm based in New Delhi with an office in Chicago, USA.
This entry was posted in Income Tax Law and tagged , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s