Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: TDS :: VAT Audit :: list of goods taxed at 4% :: VAT RATES :: empanelment :: cpt :: due date for vat payment
 
 
« Transfer Pricing »
 Duff & Phelps Acquires Leading Transfer Pricing Asia-Pacific Advisory Firm
  Updated UN manual reveals India’s transfer pricing positions
  Transfer pricing: Centre moves forward, introduces ‘secondary adjustments’
 India Issues First Comprehensive Report on Advance Pricing Accords
 Godrej & Boyce Manufacturing Co Ltd vs. DCIT (Supreme Court)
  Domestic transfer pricing leeway provides a loophole for Indian companies
 CBDT signs two unilateral APAs with taxpayers
 India signs record 88 APAs in FY17
 Relief for Indian MNCs likely as government mulls diluting POEM rules
 EY Azerbaijan holds seminar on transfer pricinga
 India among top 3 investment destinations over medium term

High court order on Vodafone transfer pricing being analysed: CBDT
October, 16th 2014

The Central Board of Direct Taxes (CBDT) will give its views on the high court order on Vodafone transfer pricing case after studying the judgement, chairman K V Chowdary said today.

"We are examining transfer pricing issue at both the (Income Tax) commissioner and Central Board of Direct Taxes (CBDT) levels. We will take a view shortly," he told PTI.

He said that all relevant issues would be considered and the department has also sought advice from the Law Ministry in the matter.

On Friday, the Bombay High Court ruled in favour of Vodafone, saying that the British telecom giant is not liable to pay Rs 3,200 crore demanded by the Income Tax department in a case related to transfer pricing.

The Income Tax department had charged Vodafone India additional income tax alleging that it had undervalued its shares in its subsidiary Vodafone India Services, while transferring them to its parent company in Britain. The transaction took place in FY2010.

Transfer pricing is the practice of arm's length pricing for transactions between group companies based in different countries to ensure that a fair price - one that would have been charged to an unrelated party - is levied.

Since cases similar to Vodafone's transfer pricing cases have come to the light, Chowdary said, "Existing cases will be treated as per relevant laws in existence while new ones related to transfer pricing will go to a specially constituted High Level Co-ordination Committee (HLCC)".

As for the second case on Vodafone involving an Income Tax claim of $2 billion after a controversial amendment in the statute retrospectively, Chowdary said an arbitration is under way to arrive at a solution.

During a speech at the Indo-American Chamber of Commerce, Chowdary asserted the sovereign's right to change laws retrospectively, and added that taxpayers have benefited in some cases.

"Retrospective amendment is the constitutional prerogative of the government and governments prior to this have enacted tax laws with retrospective effect. Some of them have been in favour of the tax payer," he said, conceding that such amendments put the industry at some risk.

"The crux of the issue is whether an underlying asset is in this country and the effective transfer of the underlying asset has happened on account of transfer of asset from outside the territory of this country, whether capital gain arising out of this transaction be taxed or not. The indirect transfer is a taxable transaction in this country," he said.

He also defended criticism about the move being labelled as "tax terrorism", calling it a very unfair view. "The issue has already been decided by the Supreme Court. There are several other similar cases involved and the government will take a proper view of them," he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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