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Archive: 21 November 2010

Posts in 21 November 2010

Live Course on Appeal, Pleading & Drafting under GST by CA Sachin Jain

May 15, 2024 7173 Views 0 comment Print

oin us for an immersive live course led by renowned expert CA Sachin Jain, as we delve into the intricacies of appeal, pleading, and drafting under GST.

Consideration received by Singapore Company on sale of computer software cannot be treated as royalty

November 21, 2010 454 Views 0 comment Print

It was held by ITAT, Mumbai that computer software when put into a media and sold becomes goods like any other audio cassette or painting on canvass or book. Accordingly, the amount paid by taxpayer towards purchase of such computer software from a Singapore company cannot be treated as royalty as per the India-Singapore tax treaty (tax treaty).

Company or corporation cannot escape liability for criminal prosecution

November 21, 2010 609 Views 0 comment Print

The Supreme Court has stated that the criminal liability of a corporation would arise when an offence is committed in relation to the business of the corporation by a person or body of persons in control of its affairs. In such circumstances, it is necessary to ascertain the degree and control of the person or body of persons, such that the corporation may be said to think and act through the person or the body of persons. The Supreme Court judgment has set aside the decision of the Bombay High Court that quashed the criminal complaint filed by Iridium India Telecom Limited against Motorola Incorporated.

Bangalore tribunal ruling upholds transfer pricing adjustment disallowing payment of management charges

November 21, 2010 862 Views 0 comment Print

The Bangalore Income Tax Appellate Tribunal (Tribunal) has ruled on the transfer pricing aspects of management services fees paid by the Taxpayer to its regional headquarter company (associated enterprise or AE). The Tribunal upheld the contention of the Transfer Pricing Officer (TPO) that the Taxpayer has not proved the commensurate benefits received for the service fees paid to the AE and, hence, ruled that the payment of the management services was not justified under arm’s length principles.

SB of Mumbai Tribunal rules no remission of liability on settlement of deferred sales tax liability at NPV

November 21, 2010 324 Views 0 comment Print

The ITL permits deduction of expenditure representing statutory liabilities like sales tax etc., only upon actual payment. Under a specific provision of the ITL, if any allowance or deduction is made by way of expenditure, loss or trading liability in previous tax years and, subsequently, the taxpayer is in receipt of the amount of the loss or expenditure or certain benefit accrues to the taxpayer by way of remission or cessation of trading liability, the same is chargeable to tax as business income.

No Penalty on remittance without deduction of tax on the basis of CA Certificate

November 21, 2010 495 Views 0 comment Print

Once the payment of ‘off-the shelf software’ held not to be chargeable to tax as a royalty on the basis of the certificate obtained from a chartered accountant, no penalty and interest can be levied on the grounds that the assessee did not take prior approval of the assessing officer under section 195(2) of the Act.

Offshore supply of equipment on Cost Insurance and Freight (

November 21, 2010 1335 Views 0 comment Print

It was held that the offshore supply of equipment, even on a CIF basis, under a composite contract is not taxable in India.

Arms’ length testing for distributors – transaction prices vis-a-vis financial results

November 21, 2010 483 Views 0 comment Print

In a recent decision, the Federal Court of Australia (“the Court”), in the case of SNF (Australia) Pty. Ltd. v. Commissioner of Taxation [2010] FCA 635 ,ruled in favour of the taxpayer acceding to the approach of direct transactional (price) comparisons (i.e., use of Comparable Uncontrolled Price Method) adopted by the taxpayer, and rejecting the profit-based analysis (using Transaction Net Margin Method) suggested by the Commissioner of Taxation (“the Commissioner”) for benchmarking the taxpayer’s purchase (of polyacrylamide products or “the products”) transactions with its overseas affiliates. The Court also held that sustained losses do not necessarily imply that the transfer prices are not at arm’s length. In this context, the Court also observed that parent company support provided under a market penetration strategy might permit a loss-making company to continue operations over an extended period without exiting the market. After Roche Products Pty Ltd. v. Commissioner of Taxation [2008] 70 ATR 703 , this judgement is only the second substantive transfer pricing decision to have been pronounced by an Australian Court or Tribunal.

US Federal-Build in one Day

November 21, 2010 222 Views 0 comment Print

We have been under great speculation when the US FEDERAL system declared $600 billion dollars buyout of bonds spread over a series of months. We speculated and the end result of the speculation was this that the World indices across the nation propel

Oriental Bank of Commerce starts unique ID enrolment process for its customers and Staff

November 21, 2010 1436 Views 0 comment Print

Oriental Bank of Commerce (OBC) on Friday commenced the enrolment process for issuance of unique identification number (Aadhaar) for its customers and staff of the bank. The enrolment process which has begun at the head office will move in phases to

IRDA may soon issue guidelines for listing of insurance companies

November 21, 2010 355 Views 0 comment Print

The Insurance Regulatory and Development Authority (Irda) will soon issue guidelines for listing of insurance companies and portability of motor and health insurance policies between companies, Chairman Hari Narayan has said. On listing of non-life i

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