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The Tax Publishers Management fee - Whether stewardship fees worthy of disallowance under TP provisions Dividend distribution tax under Section 115-O - Can it exceed DTAA proposed rates for dividends? *Facts:* Assessee had received management support and was levied management fees by its Belgian AE. These were disallowed under TP regulations holding the same to be stewardship activities. On higher appeal CIT(A) allowed the spend. On further appeal by revenue - Assessee had paid dividend distribution tax under Section 115-O to its UK parent and had belatedly claimed in cross objections before ITAT with condonation that the rates for dividend cannot exceed the rates as per Indo-UK DTAA basing on decision Reckitt Benkiser (I) Pvt. Ltd. v. DCIT 2020 TaxPub(DT) 2536 (Kol-Trib). Held against the revenue that management fees as levied were not stewardship activities thus were allowable. Order of CIT(A) required no revision. Held in favour of the assessee that the issue/debate of Dividend distribution tax rate to not to exceed DTAA rate since pending before Special bench of Mumbai ITAT to be constituted as per the decision of Hon'ble Mumbai Bench of ITAT in case of Total Oil India Pvt. Ltd. being ITA No. 6997/Mum/2019 vide its Order, dated 23-6-2021 : 2021 TaxPub(DT) 3340 (Mum-Trib) the claim of the assessee stands transferred to AO to be kept in abeyance until the special bench verdict. *Case:*DCIT v. Vesuvius India Ltd.2023 TaxPub(DT) 1560 (Kol-Trib)

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Management fee - Whether stewardship fees worthy of disallowance under TP provisions

Dividend distribution tax under Section 115-O - Can it exceed DTAA proposed rates for dividends?

Facts:

Assessee had received management support and was levied management fees by its Belgian AE. These were disallowed under TP regulations holding the same to be stewardship activities. On higher appeal CIT(A) allowed the spend. On further appeal by revenue -

Assessee had paid dividend distribution tax under Section 115-O to its UK parent and had belatedly claimed in cross objections before ITAT with condonation that the rates for dividend cannot exceed the rates as per Indo-UK DTAA basing on decision Reckitt Benkiser (I) Pvt. Ltd. v. DCIT 2020 TaxPub(DT) 2536 (Kol-Trib).

Held against the revenue that management fees as levied were not stewardship activities thus were allowable. Order of CIT(A) required no revision.

Held in favour of the assessee that the issue/debate of Dividend distribution tax rate to not to exceed DTAA rate since pending before Special bench of Mumbai ITAT to be constituted as per the decision of Hon'ble Mumbai Bench of ITAT in case of Total Oil India Pvt. Ltd. being ITA No. 6997/Mum/2019 vide its Order, dated 23-6-2021 : 2021 TaxPub(DT) 3340 (Mum-Trib) the claim of the assessee stands transferred to AO to be kept in abeyance until the special bench verdict.

Case:DCIT v. Vesuvius India Ltd.2023 TaxPub(DT) 1560 (Kol-Trib)