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: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: articles on VAT and GST in India :: TDS :: form 3cd :: due date for vat payment :: empanelment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: VAT RATES
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

Centre not to appeal Bombay High Court order in Vodafone tax case
January, 29th 2015

In a move aimed at improving the investment climate in the country, the Union Cabinet on Wednesday decided to not challenge a Bombay High Court ruling that said Vodafone was not liable to pay a tax demand of Rs 3,200 crore in a transfer pricing case.

The Cabinet also decided to not appeal against similar verdicts in other cases against taxpayers.

The decision follows Attorney-General Mukul Rohatgi’s advice to the Income Tax Department to not appeal against the high court judgement.

Briefing reporters after the meeting, Union Minister Ravi Shankar Prasad, said: “ It sends out the message to global investors whose confidence in India was shaken in the past. Prime Minister (Narendra) Modi wants it to be known that his government will take decisions that will be fair, transparent and within four corners of the law.”

The Bombay High Court on October 10, 2014 ruled against the Income Tax Department’s demand to the company to pay additional income tax alleging that it had undervalued its shares in subsidiary, Vodafone India Services, while transferring them to the parent company in Britain in the year 2010.

“The Cabinet decision will bring greater clarity and predictability for taxpayers as well as tax authorities, thereby facilitating tax compliance and reducing litigation on similar issues,” it said.

The release further said: “The Cabinet came to this view as this is a transaction on the capital account and there is no income to be chargeable to tax... So applying any pricing formula is irrelevant.”

The Bombay High Court had in October last year ruled against the Income Tax Department’s demand to Vodafone to pay additional income tax, alleging that it had undervalued its shares in subsidiary, Vodafone India Services, while transferring them to the parent company in Britain in the year 2010.

Reacting to the Cabinet decision, EY National Leader-Transfer Pricing, Vijay Iyer, said: “This is a bold step by the government. It is a huge change in approach and clearly shows their commitment to avoid frivolous litigation. Investors would feel more assured that absurd adjustments would not be encouraged by the government.”

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multimedia Presentations Multimedia Solutions 3D Solutions Corporate Presentations Business Presentations Multimedia Presentation India M

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