cours finance Modifications apportées par la loi de finances,en pdf
Certain judicial pronouncements including the Supreme Court judgment in the case of Vodafone International Holdings have created doubts about the scope and purpose of sections 9 and 195. Further, there are certain issues in respect of income deemed to accrue or arise where there are also conflicting decisions of various judicial authorities.
Therefore, there is a need to provide clarificatory retrospective amendment to restate the legislative intent in respect of scope and applicability of section 9 and 195 and also to make other clarificatory amendments for providing certainty in law.
Hence, the following clarifications have been inserted in various sections:-
Clarification regarding section 9(1) (i)
(i) Explanation 4 has been inserted in section 9(1) (i), w.e.f. A.Y. 1962-63 to clarify that the expression ‘through’ (used in section 9(1) (i) in relation to any asset or source of income in India) shall mean and include and shall be deemed to have always meant and included “by means of”, “in consequence of” or “by reason of”.
(ii) Explanation 5 has been inserted in section 9(1) (i), w.r.e.f. A. Y. 1962-63 to clarify that an asset or a capital asset being any share or interest in a company or entity registered or incorporated outside India shall be deemed to be and shall always be deemed to have been situated in India if the share or interest derives, directly or indirectly, its value substantially from the assets located in India.
Consequential provisionscours finance Modifications apportées par la loi de finances,en pdf| Cours finance | Cours Gestion
Consequent to insertion of above explanations, the following explanations have also been added to clarify the meaning of (a) “capital asset” given in section 2(14), (b) “transfer” given in section 2(47) and (c) to widen the scope of section 195(1).cours finance Modifications apportées par la loi de finances,en pdf| Cours finance | Cours Gestion
(a) An Explanation has been inserted in section 2(14), w.r.e.f. A.Y. 1962-63 to clarify that ‘property’ includes and shall be deemed to have always included any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever
(b) Explanation 2 has been inserted in section 2(47), w.r.e.f. A.Y.1962-63 to clarify that ‘transfer’ includes and shall be deemed to have always included disposing of or parting with an asset or any interest therein, or creating any interest in any asset in any manner whatsoever, directly or indirectly, absolutely or conditionally, voluntarily or involuntarily by way of an agreement (whether entered into in India or outside India) or otherwise, notwithstanding that such transfer of rights has been characterized as being effected or dependent upon or flowing from the transfer of a share or shares of a company registered or incorporated outside India.cours finance Modifications apportées par la loi de finances,en pdf| Cours finance | Cours Gestion