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: ACCOUNTING STANDARDS :: form 3cd :: list of goods taxed at 4% :: articles on VAT and GST in India :: cpt :: VAT RATES :: empanelment :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: TDS :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« Transfer Pricing »
 Central Board of Direct Taxes (CBDT) signs two Unilateral Advance Pricing Agreements (APAs) with Indian taxpayers
 Duff & Phelps Acquires Leading Transfer Pricing Asia-Pacific Advisory Firm
  Updated UN manual reveals India’s transfer pricing positions
  Transfer pricing: Centre moves forward, introduces ‘secondary adjustments’
 India Issues First Comprehensive Report on Advance Pricing Accords
 Godrej & Boyce Manufacturing Co Ltd vs. DCIT (Supreme Court)
  Domestic transfer pricing leeway provides a loophole for Indian companies
 CBDT signs two unilateral APAs with taxpayers
 India signs record 88 APAs in FY17
 Relief for Indian MNCs likely as government mulls diluting POEM rules
 EY Azerbaijan holds seminar on transfer pricinga

Transfer pricing: CBDT issues order to field officers
February, 02nd 2015

Close on the heels of the Union Cabinet accepting the Bombay High Court order in the Vodafone transfer pricing case, the Central Board of Direct Taxes (CBDT) has moved forward on other similar transfer pricing cases.

The CBDT has — through an instruction -- asked its field officers, various income tax appellate tribunals (ITAT) and dispute resolution panel (DRPs) to adhere to the ‘ratio decidendi’ of the Vodafone judgment in all cases where similar issue was involved.

Simply put, the CBDT has asked the income tax department to apply the principle behind the tax ruling involving the Vodafone Group to all other similar transfer pricing cases.

This would mean that the income tax department would henceforth not be able to make transfer pricing adjustments on the premium component of the shares issued by Indian units to their overseas parents.

The Union Cabinet had on January 28 accepted the order of the Bombay High Court in the Vodafone transfer pricing case and decided not to file special leave petition (SLP) against it before the Supreme Court.

The Modi-led Government also decided to accept orders of Courts/IT Act/DRP in cases of other taxpayers where similar transfer pricing adjustments have been made and the courts/IT Act/DRP had decided in favour of the taxpayer.

CBDT INSTRUCTION

To see the Cabinet decision through in ‘fit and proper manner’, it was imperative that CBDT issued an instruction and that has happened, Aseem Chawla, Partner, MPC Legal, a law firm, told Business Line.

“This CBDT instruction is a welcome step. It is widely expected that in similar situations a uniform approach would be adopted by the tax department, much to the respite of taxpayers involved in identical transfer pricing disputes”, he said.

It is settled law that instructions are binding on the tax officer and have to be liberally construed in favour of taxpayer.

Giving respect to the same, this latest instruction should be followed by the tax department in true spirit, he said.

S.P.Singh, Senior Director-Transfer Pricing at Deloitte in India, said the latest CBDT instruction is a “very positive step” and it will send good signal to foreign investors invested in India.

However, CBDT needs to take similar type of action on other contentious issues such as royalty, management charges and advertising expenses that affect large number of companies operating in India.

The latest CBDT instruction only covered issues of capital infusion at a premium by overseas parents, he said.

The CBDT move is timely as several foreign multinational firms were looking at newer jurisdiction for locating their business, he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

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