PTI

SC issues notice to UK-based Clifford Chance

Sun, Nov 8 11:24 AM

New Delhi, Nov 8 (PTI) The Supreme Court has issued notice to a London-based law firm on a petition filed by the income tax department that the fee charged by it for advising non-resident companies on power projects in India was taxable. A Bench headed by Justice S H Kapadia sought reply from Clifford Chance A Partnership on why it should not pay tax on Rs 9.16 crore that it received for giving legal advice to various non-resident companies on three projects in India-- Bhadravati Power Project, Vizag Power Project and Ravva Oil & Gas Fields project.

According to Attorney General G E Vahanvati, Clifford Chance had failed to furnish agreements and relevant information in respect to two projects executed in India and also to prove that it had rendered services outside India. "The assessee has not provided any detail regarding services rendered outside India.

The services provided were on an ongoing basis and are inextricably linked to the presence of its personnel in India. Therefore, it cannot be said to be independent of the presence in India," the petition said.

According to the IT department, the Bombay High Court, which gave relief to the law firm, had followed the apex court''s decision in the case of Ishkawajima Harima Heavy Industries Vs Director of Income Tax. .

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