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 :: articles on VAT and GST in India :: empanelment :: ACCOUNTING STANDARDS :: due date for vat payment :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: TDS :: cpt :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
Transfer Pricing »
 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
 Why so many MNC offices are led by expats in India
 Govt looks to resolve 100 transfer pricing agreements by March next year

Apply transfer pricing on Associate Enterprise only: Bombay HC
September, 08th 2015

In a breather to famed jewellery designer Nirav Modi promoted Firestone International, the Bombay High Court ruled that the transfer pricing addition should be considered only on international transactions with Associated Enterprise (AE) and not on entire turnover of the company.

According to the facts of the case, Firestone International is into import and export of polished diamonds to its associate company. At the time of the calculation of the tax, the tax officer determined the Arm's Length Price and made transfer pricing (TP) addition on the basis of the entire turnover of the company.

The transfer pricing is the practice of arm's length pricing for transaction between group companies to ensure that a fair price is levied. In the matter, the tribunal held that the tax addition is not justified on the entire turnover of the company but had to be restricted only to transactions with its associate company.

"The court observed that the decision of the Tribunal is a factual determination of the Arm's Length Price and the same is found within +/- 5 per cent safe harbour range," said said Kunal Gandhi, partner of tax & forensic consulting firm US Gandhi & Co. "Arm's Length Price can only be considered on value of international transactions alone and not on entire turnover of assessee (company)."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Services SEO LLC e-boost Search Engine Optimization Services Internet Marketing Services Website Placement Services On-site Webs

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