Sunday, September 2, 2007

Payments by the Indian counterparts were taxable in India

Hospitality treaty

A Luxembourg-based company recently approached the Authority for Advance Rulings (AAR), seeking clarity on the taxability of payments received by it from Indian hotels towards marketing and promotion. To know more about the case, which may be of interest to those in the hospitality industry, Business Line interacted with Mr Rajesh Patil, Manager, Deloitte Haskins & Sells, Mumbai. Here are his answers to a few questions.
First, the facts.
The Luxembourg company in question is IHLC, or International Hotel Licensing Company SARL. For starters, SARL stands for `Societe a Responsabilite Limitee' or limited liability company as per Luxembourg corporate law.

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