The Centre today said in the Lok Sabha that it does not intend to invest the provident fund of government employees, estimated at Rs 83,363 crore, in stock market. Minister of State for Finance Namo Narain Meena said
The government today said the Reserve Bank is scrutinising IPL related transactions of certain banks to check compliance under the foreign exchange rules. “The Reserve Bank of India (RBI) has undertaken scrutiny of IPL (cricket matches) related trans
Willing to play a role in examining the 2G spectrum scam, Corporate Affairs Minister Salman Khurshid today said his ministry will inspect the books of companies involved in the muddle provided a reference is made to it. We don’t want to look over an
The report issued by CAG on the 2G spectrum allocation indicates that it was the Anil Dhirubhai Ambani Group (ADAG) that benefited the most from the arbitrary and unfair manner in which licences were given in 2008. The CAG has found that Mr. Ambani’s
With some top officials being accused of indulging in corruption, FM Pranab Mukherjee has selected two officers of the revenue services with a `no nonsense’ approach to head the two revenue boards that control the country’s top revenue agencies.
Faced with stiff competition from the multinational accounting and auditing firms, mainly the Big Four, the Institute of Chartered Accountants of India (ICAI) is planning to organise the Indian auditing and accounting sector. The apex accounting regu
In Coca Cola India Inc vs. ACIT 309 ITR 194 the P&H High Court upheld the constitutional validity of Chapter X & laid down far-reaching principles on the applicability of transfer pricing provisions to cases where the non-resident was also assessed in India and there was supposedly no cross-border transaction or erosion of tax revenue. On appeal by the assessee, HELD disposing off the SLP: “The issue in this special leave petition concerns the application of the principle of Transfer Pricing. In the case of assessee herein, Notice was issued under Section 148 of the Act for some of the Assessment Years. On the question of jurisdiction, a writ petition was filed by the assessee, which has been disposed of by the High Court in the writ jurisdiction. However, on going through the papers, we find that foundational facts are required to be established which could not have been done by way of writ petition. For the afore-stated reasons, we are of the view that the assessee should be relegated to adopt proceedings, which are pending, as of date, before various Authorities under the Act … We, accordingly, direct these Authorities to expeditiously hear and dispose of pending proceedings as early as possible. If the petitioner-assessee herein is aggrieved by the orders passed by any of these Authorities, it will have to exhaust the statutory remedy provided under the Act. We make it clear that each of the Authorities will decide the matter uninfluenced by any of the observations made in the impugned judgement.”
Supreme Court disposed off a civil appeal arising out of a special leave petition involving a transfer pricing dispute, in the case of Maruti Suzuki India ltd. v. ADIT [Civil Appeal No. 8457 of 2010].The Delhi High Court , in the taxpayer’s case, had earlier, inter-alia held that the obligatory use of brand/logo of a foreign associated enterprise should be accompanied either by an appropriate payment by the foreign trademark owner or by a rebate to the Indian licensee. Furthermore, the HC also held that if the advertisement, marketing and promotion expenses incurred by a domestic enterprise, being even an entrepreneurial licensed manufacturer, which mandatorily uses the brand/logo of a foreign associated enterprise, are more than those incurred by independent domestic comparables, the foreign associated enterprise should provide arm’s length compensation to the domestic enterprise. Such compensation would be required for brand building and increased brand awareness in the domestic market, i.e., for creation of marketing intangible for the foreign associated enterprise.
Mumbai Income-tax Appellate Tribunal in the case of M/s. Goldcrest Exports v. ITO held that compensation payable for breach of contract to a foreign company would not be taxable in the hands of the foreign company in the absence of a permanent establishment of the foreign company in India. The Tribunal further held that interest included in compensation merges with and partakes the character of compensation itself, and hence, would not be taxable under the tax treaty between India and UK . Therefore, deduction claimed by the assessee for compensation including interest cannot be disallowed on account of non-withholding of taxes therefrom.
The tax payer is engaged in the manufacture of cement. The adjudicating authority had disallowed the CENVAT Credit of service tax paid on services of repairs, maintenance and civil construction etc. as the services were used in the residential colony of the tax payer on the ground that the said services were not covered under the definition of input service and hence ineligible as input service defined under Rule 2(1) of the CENVAT Credit Rules, 2004.
