FOREIGN FIRMS ENGAGED IN OFFSHORE INDIAN PROJECTS NOT TAXABLE: ITAT

Profits of a foreign company arising from offshore supplies to Indian projects are not liable to be taxed in India if the foreign company’s office in India has no role in these projects, according to a ruling by the Income-Tax Appellate Tribunal. The ITAT order last week was on an appeal filed by South Korean company LG Cables Ltd. In this case, the ITAT bench headed by president Vimal Gandi, held that though the agreement for supply of equipment was entered in India, this alone cannot be the ground for taxing the income of the foreign company from these projects.