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: cpt :: ACCOUNTING STANDARDS :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: VAT Audit :: list of goods taxed at 4% :: due date for vat payment :: VAT RATES :: ACCOUNTING STANDARD :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« News Headlines »
 Make your inventory and invoicing software GST Ready from Binarysoft
 Filing income-tax returns gets simpler for salaried persons
 Ten rules you must follow while filing income tax returns
 Reforming the income tax tribunal
 How the new system might impact consumers and businesses
 10 ways you get benefited from filing your tax return
 Returns under CGST Act,2017 with Rules
 Ten facts to know about filing income tax return this year
 The Ten Commandments of Tax Filing
 How to claim income tax refund
 How to time your buys to have best of two tax regimes

New ITAT bench to untangle MNC transfer price muddles
November, 10th 2006

Multinational companies, currently confused over the contradicting transfer pricing regime in India, will get a special bench from the Income Tax Appellate Tribunal (ITAT) for clearing issues on cross-border transactions.

A case which the proposed ITAT bench will seek to settle is the question over the legality of the Central Board of Direct Taxes (CBDT) instruction No-2, which stipulated that any cross-border transaction worth Rs 5 crore or more should be referred to the transfer pricing officer for assessment.

ITAT will also decide whether it is necessary to prove that there is prima facie evidence regarding the concealment of income before the matter is referred to the transfer pricing assessment.

The ITAT decided to take up this issue following a controversy created by an appellate commissioners order in the case of Aztec Software & Technology Services, Bangalore, which challenged the legality of instruction No-2 and observed that the assessee should have been given an opportunity to be heard before the commissioner transferred the case for transfer pricing assessment.

Shri Vimal Gandhi, President, ITAT, said that the special bench will function for at least three days from January 8, 07, in Bangalore to decide upon certain issues which figure commonly in most transactions. The members of the bench will be appointed soon.

The orders of the special bench will be binding on all such issues that come up for assessment. The steps taken up by the tribunal to clear the issues will send a positive signal to the international business community, TP Ostwal, senior chartered accountant, said.

This is the first time a special bench was formed for deciding on transfer pricing issues. Transfer pricing rules first came into force in India in 01, in view of the increasing participation of multinational entities in economic activities in the country.

This has given rise to new and complex issues emerging from transactions between two or more enterprises belonging to the same multinational group. Transfer pricing rules were framed for computation of reasonable, fair and equitable profits and tax in India.

The Finance Act, 01, replaced Section 92 with Sections 92A to 92F in the Income Tax Act, covering income from international transactions and expressions such as arms length price, associated enterprise, documentation pertaining to international transactions etc.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

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