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: form 3cd :: cpt :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: empanelment :: list of goods taxed at 4% :: VAT Audit :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
« From the Courts »
 Ravneet Takhar Vs. Commissioner Of Income Tax Ix And Ors.
 Jaiprakash Associates Ltd. Vs. Commissioner Of Income Tax
 Formula One World Championship Limited Vs. Commissioner Of Income Tax, International Taxation-3 And Anr.
 Commissioner Of Income Tax International Taxation-3 Delhi Vs. Formula One World Championship Ltd. And Anr.
 Reliance Communications Ltd vs. DDIT (ITAT Mumbai)
  Sushila Devi vs. CIT (Delhi High Court)
 Ashok Prapann Sharma vs. CIT (Supreme Court)a
  Vatsala Shenoy vs. JCIT (Supreme Court)
  Vatsala Shenoy vs. JCIT (Supreme Court)
 M.K.Overseas Pvt. Ltd. Vs. Pr.Commissioner Of Income Tax-06
 Arshia Ahmed Qureshi Vs. Pr. Commissioner Of Income Tax-21

Sesa Goa buyout under tax scanner
May, 28th 2008

After the high-profile Hutch-Vodafone deal, Vedantas $981-million buyout of Sesa Goa has now caught the attention of taxmen. The Income Tax department has sent a missive to the countrys largest private iron ore exporter, Sesa Goa, seeking details of its acquisition by Vedanta. The I-T department has sent a notice to the company under Section 133 (6) of the I-T Act. Under this section, the department has the power to call for information.

The assessing officer, the deputy commissioner (appeals), the joint commissioner or the commissioner (appeals) may, for the purposes of this Act, require any person, including a banking company or any officer thereof, to furnish information in relation to such points or matters, or to furnish statements of accounts and affairs verified in the manner specified by the Assessing Officer..., will be useful for, or relevant to, any enquiry proceeding under this Act, says the provision.

The I-T department puts this section to use if it has reasons to believe that certain income has escaped tax. The details are then used to strengthen the case.

In April 2007, the Anil Agarwal-controlled Vedanta Resources bought out Mitsuis 51% stake in Sesa Goa for $981 million by offering Rs 2,036 per share. The deal was concluded with Vedanta acquiring 100% of UK-based Finsider International, a company that controlled Mitsuis interests in Sesa Goa. The company subsequently made an open offer to acquire 20% from retail shareholders of Sesa Goa. The company could not be reached for comments.


The I-T department had earlier issued a notice in the case of Hutch-Vodafone transaction that was carried out outside India between the two overseas entities. Tax experts feel the trend has caught on after that with some other high-profile international transactions like Fosters India-SABMiller transaction coming under the tax scanner.
Tax authorities have been issuing notices/seeking information on transfer of shares of companies situated outside India who have a subsidiary here, wherein due to change in the overseas shareholding there is also a change in the business ownership in the Indian unit as well without any change in the shareholding pattern, says Vikas Vasal, executive director, KPMG.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

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