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: list of goods taxed at 4% :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: form 3cd :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: empanelment
 
 
News Headlines »
 Have you missed the due date of filing your Tax Returns?
 What you should know about income tax refunds
 Income tax scrutiny to remain limited despite surge in returns filed
 Regarding Filing of online return for first quarter of 2017-18 extension upto 01-09-2017
 Deadline to file returns extended to 28 August for biz with transitional
 GST input tax credit form
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states
 Should you file revised Income Tax returns; find out here
 Tax Deducted at Source (TDS) in Goods & Services Tax (GST)
 10 companies that blamed GST for soft June quarter

Delhi HC does a balancing act with transfer pricing order
November, 04th 2006

Can a court order resolving a tax dispute leave both the taxpayer and the tax authorities feeling vindicated? A recent ruling by the Delhi High Court has nearly managed this impossible task.

The high court has upheld the constitutional validity of an instruction issued by the Central Board of Direct Taxes (CBDT) that allows assessing officers to refer all cross-border transactions valued at over Rs 5 crore to a transfer pricing officer (TPO). Simply put, these instructions are neither arbitrary nor unreasonable, according to the HC order.

At the same time, the court has held that the transfer pricing officers findings are not binding on the assessing officer (AO) and that the taxpayer whose claims have been disputed has the right to present other relevant material before the AO for his consideration even after the TPO has given his opinion.

Transfer pricing refers to the price charged by an MNC to an associated enterprise for supply of goods and services. Since transfer prices can be used to shift profits out of India and hence avoid taxes, the tax department has regulations in place since 01 to check violations.

The law mandates MNCs to price their transactions with associated enterprises according to the arms length principle. A fairly detailed scheme to compute the arms length price has been set out in the income tax law. MNCs basically need to apply prices that independent enterprises would charge in identical transactions in the market place.

Practically speaking, in the recently concluded assessments, the AO is not disturbing the prices determined by the TPO, though an opportunity is given. The experience so far is that opportunity though given, not much consideration is made to the submissions made by the tax payer to the AO against the order of the TPO says Samir Gandhi, Tax Partner, Deloitte Haskins & Sells. The HC ruling will have wide ramifications while interpreting transfer pricing laws in India, reckon tax experts. 

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

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