Transfer Pricing | Corporate Law Reporter

Corporate Guarantees and Transfer pricing

Corporate Guarantees Whether a leg that fits into the shoes of Transfer pricing?? 1. Introduction At a time where World™s almost every economy is going through a period of crisis, Government of every country is trying their best to provide stimulus to their economy. As a result, every Government / Country wants their share of… Read More

Tag: transfer pricing

Scope Of Transfer Pricing With Respect To Transfer Of Shares

Scope Of Transfer Pricing With Respect To Transfer Of Shares Transfer prices are defined as ˜the prices at which an enterprise transfers physical goods and intangibles or provides services to associated enterprises™[1]. Whenever a transaction takes place between two entities, whether related or unrelated, a price has to be fixed. This fixing of prices for… Read More

Tags: Finance Act 2001, Income Tax Act 1961, India, Royal Dutch Shell, Taxation in India, transfer pricing, Vodafone, Vodafone India

Widening of the scope of power of Transfer Pricing Officer in context of Section 92CA of the Income Tax Act, 1961 An Analogous study

In the last few years the Government of India has taken many steps in order to strengthen the Transfer Pricing (Taxation) regime in India. A series of amendment has been introduced in order to enhance the ambit of tax base and consequent increase in the revenue. The latest step in this direction was the extension… Read More

Tags: CBDT, Finance Act, Government of India, Income Tax Act 1961, India, Order of Australia, Taxation in India, The Income-tax Act 1961, transfer pricing

Transfer Pricing of Marketing Intangibles: An Analysis in light of LG Electronics India Pvt Ltd Case

I. Introduction The taxation of income from intangibles is perhaps the most important large case issue in the inter-company transfer pricing world today.[1] An increasing number of multinational enterprises (hereinafter MNE™s) have been tapping the Indian market by offering their products through local affiliates. Due to strong market competition, they have substantially increased their advertising expenditure.… Read More

Tags: Arm's length principle, Delhi High Court, Income tax, Income Tax Act 1961, India, Maruti Suzuki, Suzuki, transfer pricing

Tax Evasion by Foreign Companies

Data on dollars transferred abroad by foreign companies in India is not centrally maintained by the government. However, with a view to prevent shifting of profits out of India and consequent erosion of the Indian tax base, selected international transactions undertaken are analysed every year in accordance with the transfer pricing provisions contained in Chapter X of… Read More

Tags: Finance Act, Fiscal year, Income tax, Income Tax Act, Income Tax Act 1961, India, LokSabha, transfer pricing

Implementation of the Cadre Restructuring proposals in Income Tax – Jurisdiction & Deployment of Posts

C.R.I. -13/1(Core Comm) : Corr.No.3 GOVERNMENT OF INDIA CENTRAL BOARD OF DIRECT TAXES DIRECTORATE OF INCOME TAX (HUMAN RESOURCE DEVELOPMENT) ICADR Building, Plot No. 6, Vasant Kunj Institutional Area Phase-II, New Delhi 110070. Ph. 26130599, Fax 26130598. F. No. HRD/CM/102/3/2009-10/(Pt)/1094 Dated : 2nd July, 2013 Office Order Sub:-Implementation of the Cadre Restructuring proposals in Income Tax Department :… Read More

Tags: CBDT, Government of India, Income tax, India, Jurisdiction, New Delhi, Taxation in India, transfer pricing

Clarifications regarding Circulars on Application of Profit Split Method

Clarification issued with Regard to Circulars on Application of Profit Split Method and on Conditions Relevant to Identify Development Centres Engaged in Contract R&D Services with Insignificant Risk; Circulars Were issued Earlier based on First Report of N Rangachary Committee on Taxation of Development Centres and IT Sector Chapter X of the Income-tax Act, 1961… Read More

Tags: Arm's length principle, CBDT, Income Tax Act, India, Tax, Taxation in India, Transactional Net Margin Method, transfer pricing

United Nations Practical Manual on Transfer Pricing

The United Nations has recently released a publication namely Practical Manual on Transfer Pricing. The Manual is said to contain valuable discussions on a large number of important topics related to the subject of Transfer pricing. There is a detailed discussion on the different types of transfer methods available for calculation of transfer price, such… Read More

Tags: Australian Labor Party, Commonwealth Law Reports, Government, India, Multilateral, Organisation for Economic Co-operation and Development, transfer pricing, United Nations

High Court Explains Tax Implications Of Foreign Co’s Liaison Office In India

Ratio of the Case: According to Section 5 & 9 of the Income Tax Act, 1962, the income towards products sourced by overseas buyers, for products manufactured in India - is not attributable to the Liaison Office set up to arrange the sourcing. This is the the case, even if fee for this service rendered is received from… Read More

Tags: Business, CIT, Commonwealth Law Reports, Income, India, transfer pricing, United States

Transfer Pricing controversies a tale that is not a fairy one

1. Introduction Since its introduction in the Finance Bill 2001, transfer pricing provisions/regulations (TP regulations) have been a matter of huge debate & consequentially tremendous amount of litigations. Lack of conceptual clarity & high level of subjectivity in application of rules & various methods collated with strain of meeting higher revenue targets has added salt… Read More

Tags: Delhi, GlaxoSmithKline, Income tax, India, Multinational corporation, Nokia, transfer pricing, Vodafone

Transfer pricing provisions do not apply to investments in overseas share capital

CLR Editorial Notes: The assessee company M/s Vijay Electricals Ltd. is engaged in the business of manufacture and sale of distribution and power transformers and rural electrification projects on turn key basis. The assessee filed its return of income for the assessment year 2007-08 declaring a total income of Rs. 20 Crore. The scrutiny assessment was completed u/s… Read More

Tags: Appeal, Arm's length principle, CIT, Educational assessment, India, transfer pricing

Profit Level Indicator – All Related transactions cannot be considered for determining ALP

CLR Editorial Notes: In this particular case, the assessee™s parent company, Digital Microwave Corporation USA, had supplied an equipment to its Indian customers for which the assessee received a decided commission. The equipment was covered by warranty and the service relating to its installation and annual maintenance was provided by the assessee in India. It is annual… Read More

Tags: Australian Labor Party, CIT, Commonwealth Law Reports, Comparables, India, TPO, transfer pricing, United States

ITAT Explains Important Law On Attribution Of Profits To PE

CLR Editorial Notes: In this case related to Profit attribution to PE, the Tribunal had to consider the following legal issues: (i) whether the assessee could be said to have a PE in terms of Article 5(1) and 5(2) of the DTAA? (ii) what is the correct method to allocate profits to the PE?, (iii) whether fees… Read More

Tags: Business, Commonwealth Law Reports, Double taxation, Finance Act, India, Profit (economics), Royalties, transfer pricing