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: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: VAT Audit :: list of goods taxed at 4% :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: Central Excise rule to resale the machines to a new company :: form 3cd :: due date for vat payment :: ACCOUNTING STANDARD
 
 
« General »
 Tax queries: Contact employer to get Form 16 error rectified
 Finance Ministry may hike monetary limit for filing tax appeals
 Compilation of all notifications issued ON
 Banking transaction tax to have cascading effect: NIPFP
 While filing tax in India, NRIs do not have to state overseas income
 Tax ease on cards, some daily use items may become cheaper
 It’s one year of GSTN, too
 SBI home, auto loan interest rates cut, set to be effective from Nov 1
 MNCs will have to furnish extra disclosures from March 2018
 High Court Allows Woman To File Income Tax Returns Without Quoting Aadhaar
 If tax status is no longer NRI, all your income is taxable in India

Income tax panel says, Quattrocchi got kickback: Bofors scam
January, 04th 2011

The Bofors ghost returned to haunt the Congress party with an income tax tribunal saying that kickbacks of Rs 41 crore were paid to late Win Chaddha and Italian businessman Ottavio Quattrocchi in the Howitzer gun deal and that they are liable to pay tax in India on such income.

"....inaction in this regard may lead to a non-existent undesirable and detrimental notion that India is a soft state and one can meddle with its tax laws with impunity," the income tax appellate tribunal (ITAT) said in its 98-page order.

The tribunal gave this order while dismissing an appeal by Win Chaddha's son against income tax department's claim of Rs 52 crores and Rs 85 lakh from his father for the assessment years 1987-88 and 1988-89.

In the order, the tribunal details the denials by gun maker Bofors about existence of middlemen in the 1986 deal valued at Rs 1,437 crore and the efforts by Quarterdeck to open a series of accounts to transfer funds in an attempt to obliterate the money trail.

Holding that Bofors should have reduced the commissions paid from the contract price, the tribunal observed that government had to pay excess amount of about Rs 41 crore, which was passed to Chaddha and Quattrocchi against the terms of contract.

Quattrocchi was known to be close to the Gandhi family and tribunal's observations in the Bofors episode may have come at an inopportune time for the Congress and the government. The Congress party and the UPA government are already battling various allegations of corruption. Quattrocchi left India in 1993 even as a CBI case was filed on kickbacks in the deal.

The order mentions that a commission of Rs 32.66 crore was transferred to M/s. Svenska Inc., Panama, which was traced to Chaddha, and was credited in an account of Swiss Bank Corporation, Geneva.

Similarly, Rs 8.57 crore was transferred to A E Services Limited, c/o Mayo Associates SA, Geneva, which was opened only a fortnight earlier on August 20, 1986.

It emerged that despite Indian government's insistence not to appoint or pay any agent, Bofors entered into a fresh consultancy agreement with AE Services of UK at the behest of Quattrocchi.

"This amount of SEK (Swedish Kroner) 50,463,966 works out to be exactly 3 per cent of the amount of advance paid by the government of India to Bofors and was, thus, perfectly in accordance with the terms set out in the AE Services Limited-Bofors agreement dated November 15, 1985," the order said.

The two-member bench comprising R C Sharma and R P Tolani held that both Win Chaddha and entities through which money was transferred as commission to Quattrocchi were liable to pay tax in India.

"In our view the department should have carefully examined the issues about their taxability and their having permanent establishment in India and appropriate proceedings should have been undertaken to assess and recover taxes.

"We may point out there exists a serious issue apropos Bofors for not having deducted withholding tax i.e. TDS, from such payments to the assesses/Svenska, AE Services, Quattrocchi.

"In our view, to enforce the rule of law, these steps were desirable to bring all the relevant income tax violations to the logical end by the income tax department. Inaction in this regard may lead to a non-existent undesirable and detrimental notion that India is a soft state and one can meddle with its tax laws with impunity," the tribunal said in its 98-page order.

 
 
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