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Wednesday, September 22, 2021

Microsoft nets $620 million benefit on top court withholding tax verdict

Microsoft nets 0 million benefit on top court withholding tax verdict [ad_1]

Technology large Microsoft mentioned it had recorded a $620 million revenue tax benefit within the March quarter because of the Supreme Court’s verdict on withholding taxes for software program gross sales and on an settlement between India and the United States on switch pricing.

In March, the apex court mentioned firms that distribute software program of abroad entities in India should not liable to withhold tax as the cash being paid to the mum or dad will not be cost of royalty for the consumer of copyright in laptop software program.

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“Although we were not a party to the appeals, our software sales in India were determined to be not subject to withholding taxes,” Microsoft mentioned in regulatory filings after its third quarter outcomes on Tuesday.

“Therefore, we recorded a net income tax benefit of $620 million in the third quarter of fiscal year 2021 to reflect the results of the India Supreme Court decision impacting fiscal year 1996 through fiscal year 2016,” it mentioned.

The top court’s ruling had come within the case of Engineering Analysis Centre of Excellence Pvt Ltd vs The Commissioner of Income Tax (CIT).

CITs’ choice concerned appeals filed by 86 particular person firms working in India, some relationship again to 2012.

The US-based developer of the Windows working system didn’t elaborate on the switch pricing settlement.


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