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: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: form 3cd :: VAT RATES :: VAT Audit :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: TDS :: list of goods taxed at 4% :: due date for vat payment
 
 
Transfer Pricing »
 The transfer pricing conflict is about profit shifting
 Transfer Pricing Compensating Adjustments: Another IRS Loss
 HMRC steps up inquiries into cross-border deals by big business
 An Overview of Transfer Pricing in China
 South Africa: transfer pricing record-keeping rules finalized
 India among the top three nations where transfer pricing policies faced official examination: EY Survey
 Vietnam publishes draft transfer pricing law to combat tax avoidance
 New transfer pricing documentation rules and fiscal assessment procedure in Finland
 India, US resolve tax disputes worth Rs 5,000 crore via APA
 India, UK sign three Advance Pricing Agreements
  Foreign Exchange Management (Insurance) Regulations, 2015

Ad expenses of Indian arm of MNCs fall under transfer pricing
March, 19th 2015

The Delhi High Court has held that money spent by Indian subsidiaries of foreign companies on advertising, marketing and promotion (AMP) of their global brand here are international transactions and fall under the purview of transfer pricing rules, reports PTI.

A bench of justices Sanjiv Khanna and V Kameswar Rao, while ruling in favour of the tax department that expenses on AMP are international transactions, however, refused to accept the method employed by the authorities to calculate tax payable by the subsidiaries. Instead, the bench laid down a number of guidelines to be adopted by the authority for calculating the tax payable by the subsidiary for expenses incurred on AMP.

The bench also remanded back to the Income Tax Appellate Tribunal (ITAT) the issue of calculation of tax payable by subsidiaries for fresh consideration based on the guidelines laid down by the court.

It directed all the stakeholders to appear before the Tribunal on April 20, on which date ITAT will decide the date for hearing the issue of calculating tax payable by the subsidiaries.

The ruling and guidelines came on the pleas of several Indian subsidiaries of multinational companies including Sony, Daikin, Haier, Reebok, Canon and Casio.

The firms had primarily opposed the tax authority’s view that AMP beyond the ‘bright line’ is a separate and independent international transaction undertaken by the Indian subsidiary for promoting the brand of the parent company. ‘Bright line’, as per tax authorities, is the industry standards of spending on AMP and any expenditure over and above this limit is taxable. The companies had opposed the same saying such a methodology is inflexible.

 

 
 
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