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 INPUT TAX CREDIT IN VAT :: form 3cd :: TDS :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: VAT RATES :: cpt :: VAT Audit :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: empanelment :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4%
General »
 Tax and the dilemma of the self-employed
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector

Govt starts tax inquiry into Cadbury's takeover by US-based Kraft
January, 04th 2011

The government has initiated an inquiry into Cadbury India's takeover by US-based Kraft Food Inc on Delhi High Court's directive, for alleged tax evasion and flouting of buyout norms.

The Finance Ministry has initiated the inquiry under the Income Tax Act on the order of the High Court, which asked the government last month to complete the probe within 8 weeks.

In a similar case, UK-based Vodafone's arm has been asked by authorities to pay over Rs 11,000 crore in taxes for buying Hong Kong-based Hutchison's telecom company. The deal involved Hutchison Telecom's India assets in a JV with the Essar group.

The court gave the directive in the Kraft-Cadbury case on a complaint by social activist Ved Prakash, seeking action against the entities involved for flouting takeover laws. The Ministry of Finance took cognisance of the complaint and has directed the probe.

"I am directed to inform you that taking cognisance of the petition filed by you, action has been initiated in the matter under Income Tax laws," Under Secretary Salil Mishra said in his letter addressed to Prakash.

While refusing to go into the merits of the case, the court had asked Prakash to approach the government and the authorities concerned.

Prakash, in a letter on December 14, 2010, had made representation to the Central Government and the Income Tax Department . On December 1, 2010, the court had asked Prakash to make a representation to the government on the allegations levelled against Kraft Food Inc over the acquisition of Cadbury India, a subsidiary of UK-based Schweppes Cadbury PLC.

"If the representation is submitted, the competent authority shall address the same within eight weeks therefrom," the court had said.

The Public Interest Litigation (PIL) filed by Prakash alleges huge loss to the Indian exchequer on account of tax evasion in Kraft's takeover of Cadbury. PIL claims that while acquiring the shares and assets of Cadbury, Kraft Food Inc was under an obligation to pay tax on the acquisition of the Indian business.

Kraft Foods had acquired British candy maker Cadbury for about $19.6 billion in February 2010 and the deal included the UK firm's Indian subsidiary.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 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