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Recovering from the global slowdown, the Indian Economy is geared up to achieve the GDP growth rate of 9 percent for 2011-12 on the basis of positive momentum in savings, investment rate and increasing investment in infrastructure. However, there is a soaring task in front of the Government to overcome from the crisis of elevated inflation rate on account of higher food, crude oil prices and poor implementation of the policy measures. The Finance Minister would thus need to strike a balancing act in insulating the aam aadmi from the higher inflation and at the same time keep the momentum going for the successful Indian growth story ahead.
Recently, the High Court of Punjab and Haryana (the High Court) in the case of CIT v. Rockman Cycle Industries Private Limited [201 1-TIOL-88-HC-P&H-IT-LB] held that if the taxpayers used certain devices to conceal true nature of the transaction, it was the duty of the taxing authority to unravel the device and determine its true character.
Non-referred international transactions fall outside the TPO’s jurisdiction . The Delhi Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of M/s. Amadeus India Pvt Ltd v. ACIT, Range-I, New Delhi (ITA No. 5203/Del/2010) held that the role of Transfer Pricing Officer (TPO) is limited to the determination of arm’s length price in relation to the international transaction(s) referred to him by the Assessing Officer (AO). The TPO, suo motto, cannot take cognizance of any other international transaction not referred to him by the TPO.
After the issuance of Annual Supplement of the Foreign Trade Policy 2009-14, the Government maintained a close watch on the exports, especially of those sectors, which were badly hit by recession in the developed world. The Government observed that while the exports have generally shown a rising trend during last few months, certain sectors were still not performing well. To enhance competitiveness for products which are labour/ technology intensive, the Government has announced further export incentives to more than 600 products. Certain procedural simplifications have been announced to help trade facilitation and reduction of transaction costs. Special initiatives for pharmaceutical sector were also announced.
Income Tax Appellate Tribunal (“The Tribunal”), Delhi Bench recently pronounced its ruling in the case of M/s Aricent Technologies (Holding) Limited v. DCIT (Appeal no. ITA No. 4699 /Del. /2010) for AY 2006-07, on the amount paid as incentive to employees of the Taxpayer by its parent company pursuant to transaction of takeover for the employees’ retention. The Tribunal held in favor of the Taxpayer observing that transaction does not have any element of income for the purpose of making an adjustment to the price of the said international transaction and is merely in the nature of reimbursement of incentive paid by Taxpayer to its employees.
These regulations may be called the Competition Commission of India (Procedure in regard to the transaction of business relating to combination) Regulations, 201_. (2) They shall come into force on the date of their publication in the Official Gazette.
The Delhi bench of the Income Tax Appellate Tribunal (Tribunal) recently pronounced its ruling in the case of Birlasoft (India) Ltd. v. Dy. CIT ITA NO. 3839/DEL/2010, where the Taxpayer had determined the arm’s length price of their international transactions on the basis of internal benchmarking analysis. The Tribunal upheld the transfer pricing method followed by the Taxpayer whereby the net cost plus margin earned from rendering software development and related services (“software services”) to associated enterprises (AEs) were compared with the operating profit margin earned from rendering software services to unrelated parties.
The first meeting of the sub-committee of the Financial Stability Development Council (FSDC) was held at the Reserve Bank of India office in New Delhi on Friday, the central bank said in a release. The sub-committee reviewed the developments in the macro economy and the financial markets, it said.
The Federation of Indian Chambers of Commerce and Industry ( FICCI )), today said it will pursue the issue of implementation of the proposed Goods and Services Tax (GST) with various state governments. “We will pursue with state governments the (issue of) implementation of GST,” FICCI’s Chairman (Western Region Council), Sushil Jiwarajka said in an interactive Budget session held here.
The CBI today searched the residence of suspended Prasar Bharti CEO Mr BS Lalli after registering a case against him and others for alleged irregularities in the award of broadcasting rights of Commonwealth Games that reportedly resulted in a loss of Rs 135 crore to the exchequer. The case was filed against Mr Lalli, director of Zoom Communications Mr Wasim Dehlvi and others under relevant provisions of the Prevention of Corruption Act and Indian Penal Code late last night, official sources said.
