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.
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