Delhi High Court: MasterCard not liable to pay Equalisation Levy, pending decision of the Delhi HC in a separate case challenging PE status
The Delhi High Court disposed-off the plea of MasterCard Asia Pacific Pte Ltd, Singapore, taking on record, the assertions of the Income Tax Department, that it was bound by the order of the Authority of Advance Rulings (stipulating that the company had a PE in India). The department stated that it had ‘no desire’ of collecting Equalisation Levy in respect of income on which tax has been paid by the company.
The ruling comes as a relief to MasterCard as its income would not be subject to double taxation (regular income tax as well as Equalisation Levy). Concurrently, it shall also be of assistance to those foreign entities whose cases are pending disposal in respect of creation of PE in India, as they would be spared from the simultaneous imposition of Equalisation Levy.
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