THE Delhi bench of Income Tax Appellant Tribunal1 has held that in cases where a foreign branch of a bank has issued credit card outside India, which has been used by the card holder in India, the income in the form of fee, charges, commission received by the foreign bank is not taxable in India. This is because no income accrues or arises in India.
The tribunal applied section 9(1)(v)(c) of Income Tax Act and held that in this case the debt will be deemed to be taken abroad and therefore any interest due on such debt will be deemed to accrue outside india and thus not taxable in India. The Amoun Involved was very high as as equal to Rs. 10 Crore. In case u need copy of the judgment email me at cajatinjindal @ yahoo.com
Naveen Fintech Pvt Ltd
Kolkata
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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