Corporate tax alert 

General and administrative services neither taxable as FTS nor as business income

The Mumbai Bench of the Income-tax Appellate Tribunal has rendered its decision that the payment remitted by the taxpayer in relation to general and administrative services, to its parent company, neither qualified under section 9(1)(i) nor section 9(1)(vii) of the Income-tax Act, 1961 (ITA). Hence, no disallowance could be made under section 40(a)(i) of the ITA for non-deduction of tax from such payment

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