Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: list of goods taxed at 4% :: VAT RATES :: ACCOUNTING STANDARD :: VAT Audit :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: form 3cd :: empanelment :: TDS :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
« Transfer Pricing »
 India signs Advance Pricing Agreements with the Netherlands
 India eases bilateral transfer pricing norms
 India to accept transfer pricing APA, MAP applications even if corresponding adjustment treaty provision absent
 India Finalizes Pricing Reporting Rules Under OECD Plan
 Final Transfer Pricing Rules For Multi-Nationals Notified
 Govt eases transfer pricing norms for offshore funds
 India’s final transfer pricing master file rules retain unique flavor
 Transfer pricing: tighter reporting norms for multinationals notified
 Transfer pricing once again comes to the fore for MNCs
 Valuation rules under GST could lead to transfer pricing disputes
 A web of requirements in transfer pricing regime

Bombay HC rules in favour of Vodafone in transfer pricing case
October, 27th 2014

The Bombay High Court today ruled in favour of telecom major Vodafone, as it pronounced that the telecom major need not pay tax in a transfer pricing case.

“The court today said that without income there will be no tax, which is very logical,” said a Vodafone official who refused to be quoted.

The order went against the two-year-old tax demand from the Income Tax Authorities, who were hoping to collect as much as Rs 3,200 crore in tax from Vodafone’s outsourcing unit in Pune. The amount included tax as well as interest for the IT demand for the year 2008-09.

In the three-minute judgment delivered today, the court said that there can be no tax without an income.

The IT Department had asked the second largest telecom operator in the country to pay tax for a share transfer that was done by the subsidiary to the parent company. The IT Department slapped tax on the value of the shares that were issued. The IT Department claimed that related party transactions should be done at arm's length pricing and hence comes under the accounting practice of transfer pricing.

This however is not the only transfer pricing case that Vodafone is fighting. It has yet another tax demand from the IT Department, which accounts to as much as Rs 4,200 crore for the financial year 2010-11. It is also mired in a much larger tax controversy for the purchase of 67% stake in Hutchinson Essar in 2007. The claim for this is as large as Rs 11,200 crore.

Vodafone had earlier responded to the transfer pricing claim saying that the transaction is a share subscription and not a share sale. The British telecom also said that it is not covered under tax laws both in India and abroad.

The ruling might set a precedent for 25 other companies facing similar tax demands.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Outsourcing Test Solutions Software Testing Software Bug Testing Software Issues Tracking Software Issue Fix Software Code Optimization Database Design Optimization

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions