Marriott moves SC over taxability of mktg fee from Unitech
The International Hotel Licensing Company, an arm of the Marriott Group, has moved the apex court against the ruling of a quasi judicial body that foreign firms were liable to pay tax on assignment fee charged from Indian companies for promotional...
By PTI |
NEW DELHI: The International Hotel Licensing Company, an arm of the Marriott Group, has moved the apex court against the ruling of a quasi judicial body that foreign firms were liable to pay tax on assignment fee charged from Indian companies for promotional activities abroad.
A bench headed by Justice Ashok Bhan has sought response from the Director of Income Tax (International Taxation) on a petition filed by Luxembourg-based International Hotel Licensing Company (IHLC).
IHLC challenged the decision of Authority of Advance Ruling (AAR) order that held it was liable to pay tax on considerations charged for promoting abroad an upcoming hotel of Unitech Hospitality Ltd.
Unitech's hotel in Noida, Uttar Pradesh, is a part of the Marriott chain.
IHLC, which undertakes promotional and other marketing activities for Marriott, has sought the apex court's ruling on AAR's decision.
According to IHLC, the mere rendering of services outside India to a person carrying business in India does not amount to having a business connection in India.
IHCL said it did not realise profit from its activities and the receipts for brand building were in the nature of reimbursements and not in the nature of income, thus not taxable under Indian income tax laws.
A bench headed by Justice Ashok Bhan has sought response from the Director of Income Tax (International Taxation) on a petition filed by Luxembourg-based International Hotel Licensing Company (IHLC).
IHLC challenged the decision of Authority of Advance Ruling (AAR) order that held it was liable to pay tax on considerations charged for promoting abroad an upcoming hotel of Unitech Hospitality Ltd.
Unitech's hotel in Noida, Uttar Pradesh, is a part of the Marriott chain.
IHLC, which undertakes promotional and other marketing activities for Marriott, has sought the apex court's ruling on AAR's decision.
According to IHLC, the mere rendering of services outside India to a person carrying business in India does not amount to having a business connection in India.
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IHCL said it did not realise profit from its activities and the receipts for brand building were in the nature of reimbursements and not in the nature of income, thus not taxable under Indian income tax laws.
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