Whether eBay India and eBay Motors can be considered as a permanent establishment of the assessee?
Whether eBay India constitute a dependent agent or not?
The dependent agent has and habitually exercises, in that State, the authority to negotiate and enter into contracts for or on behalf of the enterprise.
Whether FOWC was having any 'Permanent Establishment' (PE) in India in terms of Article 5 of DTAA?
The India-UK treaty defines permanent establishment in Article 5(1) as "a fixed place of business through which the business of an enterprise is wholly or partly carried on."
Whether, in the circumstances of this case, the assessee company had any business connection in British India within the meaning of Section 42 (1) of the Act?
Only a part of the operations which eventually result in the realisation of profits is carried on in British India has directed an apportionment of the profits so as to render liable to Indian income tax only that portion of the profits which can reasonably be attributed to the business operations that are carried on in British India.
Whether the Parliament has the power to enact laws for extraterritorial aspects for the territory of India or the welfare of the Indians?
Article 245(1) does not extend to those extraterritorial aspects that do not have a nexus with India.
The Parliament can utilize its powers to enact extraterritorial laws only when the law has an impact on the territory of India or for the welfare and interest of the Indians.
Whether the amounts received/receivable by the applicant from Petronet LNG for offshore supply of equipment, materials, etc., are liable to be taxed in India under the provisions of the Income Tax Act,1961?
Whatever is payable by a resident to a non-resident by way of fees for technical services, thus, would not always come within the purview of S.9(1)(vii) of the Income Tax Act,1961.
Services of a non-resident to a resident utilized in India may not have much relevance in determining whether the income of the non-resident accrues or arises in India.
It must have sufficient territorial nexus with India so as to furnish a basis for the imposition of tax.
Whether E-Funds India is a fixed place permanent establishment ('Fixed PE') of E-Funds Corporation?
Whether any profits should be attributed to the Permanent Establishment, if it exists at all, when the transactions were entered on arm's length price?
In order to constitute Fixed PE, the assessee must, first, have a fixed place of business and, second the assessee should exercise sufficient control over the said place.
Provision of support services by an entity in India would not make the entity a Permanent Establishment of a foreign entity.
Whether the sum paid by Indian enterprises to use foreign software is taxable as royalty for copyright as defined in the Act and Double Taxation Avoidance Agreement (DTAA)?
Whether the payer was required to deduct tax at source on such payments under Section 195 of the Act?
Payments made for using foreign software by Indian businesses to foreign corporations do not constitute royalties that are taxable in India.
Therefore, there is no liability on the resident Indian companies to deduct tax at source on the purchase of software under section 195 of the Income Tax Act 1961
Whether Indian Tax Authorities have the jurisdiction to tax a transaction between two non-resident entities, which took place outside India but involved underlying assets in India?
Whether a transaction involving a transfer of shares of a foreign company, which indirectly possesses assets in India, can be taxed in the country?
Section 9(1) of the Income Tax Act, 1961 talks about the income arising directly or indirectly from any business connection situated in India or through the transfer of capital assets situated in India to be considered taxable.
Section 195 of the Income Tax Act, 1961 mandates the person who is responsible for paying a non-resident or a foreign company shall deduct income tax rates thereon at the rates in force.
Section 163 of the Income Tax Act, 1961 mentions who exactly can be treated as an agent. It lays out certain conditions for an individual to become so.
Section 2(14) of the Income Tax Act, 1961 mentions what assets can be treated as capital assets. Exceptions are stock in trade, ornaments used for personal purposes, agricultural land, gold bonds, and special bearer bonds.
Whether certain receipts or gains should be considered taxable income under the Income Tax Act, 1961?
Whether a particular receipt or gain is of a capital nature or a revenue nature?
The Residential Status of a company for income tax purposes is determined by the place where its management and control are exercised. This is also known as the "Place of Effective Management" test.
Whether the said technical fee of 30.5 million US Dollars, payable in five equal installments every year, to be treated as revenue expenditure or capital expenditure?
The distinction between revenue expenditure and capital expenditure. The payment of technical know-how and royalty was revenue expenditure. The payment of technical know-how and royalty was not for the acquisition of any fixed asset or the setting up of the plant and machinery for the manufacture of cars in India.