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: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: VAT RATES :: due date for vat payment :: ACCOUNTING STANDARD :: TDS :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARDS :: form 3cd
 
 
ITAT-Constitution of Benches »
 Income Tax Appellate Tribunal, Hyderabad Benches, Hyderabad. Constitution 22.01.2018 To 25.01.2018
 Income Tax Appellate Tribunal, New Delhi Constitution Of Benches From 22.01.2018 To 25.01.2018
 Income Tax Appellate Tribunal, Hyderabad Benches, Hyderabad. Cause List Of Cases Posted Before A-Bench (Db&Smc ) - 22.01.2018 To 25.01.2018
 Income Tax Appellate Tribunal Chennai Benches Chennai Constitution for the week from 22/01/2018 To 25/01/2018 (26/01/2018 Declared As Closed Holidav)
 ICAI has clarified that there is no error in the results of CA Final examination held in November 2017 declared on Jan. 17
 Income Tax Appellate Tribunal : Mumbai Consolidated list of orders ready for Pronouncement on 19/01/2018
 Income Tax Appellate Tribunal : Kolkata Benches : Kolkata. Sub : Cause List For The Cases Fixed On Friday The 19/01/2018
 Income Tax Appellate Tribunal, Mumbai Consolidated list of orders ready for Pronouncement on 19/01/2018
 Income Tax Appellate Tribunal, Cochin Benches Cause List Of DB For The Week Ending On 12/01/2018
 Income Tax Appellate Tribunal Pune Benches Cause List for Bench "B"for the week ending 19/01/2018
 Income Tax Appellate Tribunal Mumbai Benches Mumbai Constitution of Benches for the Period from 22/01/2018 To 25/01/2018

SKOL Breweries Ltd vs. ACIT (ITAT Mumbai)
April, 10th 2013

Transfer Pricing: RBI approval has no relevance on issue of Arms Length Price

The assessee was engaged in the manufacturing and marketing of beer using technical know-how provided by SAB Miller. The assessee paid royalty for the technical know-how and the question arose whether the same was at arms’ length. One of the arguments advanced by the assessee was that as under Press Note no. 9 of 2000 issued by the Ministry of Commerce and Industry in relation to FDI policy, remittance of royalty not exceed 5% of domestic sales and 8% of export sales was permitted, the royalty paid by it which was within those limits should be considered as being at arms’ length for transfer pricing purposes. HELD by the Tribunal rejecting the plea:

Press Note no.9 of 2000 issued by the Ministry of Commerce and Industry in respect of FDI policy and prescribing the percentage of royalty to the sales allowed under automatic route cannot substitute as ALP to be determined under the provisions of the Act and Rules. FDI policy permitting certain percentage of payment of royalty is only for remittance of the amount in foreign exchange and therefore, such permission given in an entirely different context and purpose cannot be considered as relevant for determination of the ALP under I. T. Act. The RBI is only concerned with the foreign exchange and, therefore, would look into the matter from that point of view. The RBI, at the time of giving such permission would not keep in mind the provisions of the I T Act and that is the function of the income tax authorities and, cannot be validly go into such an issue. When a proper mechanism is provided under the provisions of the I. T. Act and Rules for determination of the ALP, then the approval by other than the I. T. Authorities, for the purpose of remittance/outflow of the foreign exchange, does not ipso facto, partake the character of ALP, which has to be determined as per TP regulations (Nestle India Ltd 337 ITR 103 (Del) followed).

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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