INDIA BUSINESS WORLD - DECEMBER 1^st - DECEMBER 15^th - 2007

I-T DEPT MOVES SUPREME COURT ON ERICSSON'S TAX LIABILITY CASE

The Income-Tax department has sought the Supreme Court's directions on whether Ericsson Telephone Corporation India AB was liable to deduct tax at source on portion of salaries (child education expenses) paid to its expatriate staff. A bench headed by Justice H K Sema while admitting the I-T department's appeal clubbed the matter with a similar petition of Itochu Corporation pending before it. According to the department, Ericsson was not deducting tax at source on the portion of salary paid to its expatriate employees.