Transfer Pricing

Understanding Transfer Pricing Regulations in India

Income Tax - The Ministry of Finance’s concerns regarding possible tax avoidance practices by manipulations in the prices charged or paid, in intra-group transactions, started increasing gradually with the increase in the economic activity reported by these Multi-National Companies. These concerns prompted the then Indian Government to eventually in...

Read More

Opportunities that Covid has Opened for A Transfer Pricing Strategy

Income Tax - Regarding transfer pricing, when it comes to analyzing comparables, the vast majority of analysts rely on the comparative evaluation of the returns of a controlled entity versus the returns of comparable entities. In this economic crisis caused by COVID, the above is a serious problem, which is worth taking into account, since if the perf...

Read More

Extension of due date for filing TAR/ITR – HC declined to interfere

Income Tax - High Court (HC) declined to interfere in the matter of extension of the due date for filing Tax Audit Report (TAR) and Income Tax Return (ITR) The Hon’ble Gujarat High Court in All Gujarat Federation of Tax Consultants v. Union of India [R/Special Civil Application No.  13653 and 660 of 2021, dated January 13, 2021] […]...

Read More

Take appropriate decision on extension of due date of filing ITR & TAR by 12.01.2021: Gujarat HC to CBDT

Income Tax - The Hon’ble High Court, Gujarat in the All Gujarat Federation of Tax Consultants v. Union of India [R/Special Civil Application No. 13653 of 2020 dated January 8, 2021] directed CBDT to take an appropriate decision for extension of the due date of filing income tax return (ITR) and Tax audit report (TAR) by January 12, […]...

Read More

What if Due Date for filing ROI on 10th January 2021 falls on a Sunday?

Income Tax - 10th January 2021, the last date of filing of ROI u/s 139(1), falls on Sunday. In such a case what should be the due date ROI u/s 139(1)? 10th January 2021 or 11th January 2021? Opinions varies. An analysis of the provisions affecting the Due Date may perhaps clarify the issue. General Clauses Act 1977: […]...

Read More

All India Protest Call against GST/Income Tax Issues by WMTPA

Income Tax - Government is neither listening to representations submitted by various associations, nor listening to court direction in true spirit. In Covid 19 pandemic, all professionals and Trade, ignoring life and death risk, ensured that, India will stand again, paid taxes in lakh crores but it seems government doesn’t recognize us....

Read More

Extend due dates of GST, Income Tax & ROC Compliances

Income Tax - All India Joint Representation Committee for GST have filed representation by way of join petition of 24 GST and Trade Associations and 5226 signatories to the signature campaign considering short extension granted in connection with GSTR 9 & 9C for FY 1819 & FY 1920 , Income Tax Returns, Tax Audit and Transfer Pricing Reports [&h...

Read More

Extend due dates of TAR/ITRs/VSV Scheme for AY 2020-21

Income Tax - Calcutta Citizens’ Initiative, Representation on Extension of due dates of Vivad Se Vishwas Scheme and also for extension of date for TAR and ITRs for asst year 2020-21. Calcutta Citizens’ Initiative 3, Ho Chi Minh Sarani, Ground Floor, Kolkata 700001 Ph – 033-2466-1000 Email: [email protected] URGENT Ref. CII/Rep/2021/...

Read More

Further extend Income Tax Return & Audit due dates

Income Tax - Direct Taxes Professionals’ Association, Kolkata has requested FM for further extension of various due dates under Income-tax Act, 1961 especially Income Tax Return Forms for AY 2020­- 21, Tax Audit Reports and other related Returns for AY 2020­- 21. Text of their representation is as follows:- DIRECT TAXES PROFESSIONALS’ ASSOCIATIO...

Read More

AIFTP request for further extension of Income-tax due dates

Income Tax - AIFTP Representation for further extension of various due dates under Income-tax Act, 1961 especially Income Tax Return Forms for AY 2020­- 21, Tax Audit Reports and other related Returns for AY 2020­- 21...

Read More

Suo-motto disallowance by Assessee cannot be disregarded by AO without recording his Satisfaction

Greatship (India) Ltd. Vs DCIT (ITAT Mumbai) - Greatship (India) Ltd. Vs DCIT (ITAT Mumbai) The assessee has further assailed the disallowance worked out by the A.O under Sec. 1 4A r.w Rule 8D, on the ground that there was no recording of an objective satisfaction by the A.O that the suo-motto disallowance offered by the assessee under Sec. 14A ...

Read More

TPO cannot determine arm’s length price on estimate basis without applying any one of approved methods

Dow Corning India Pvt. Ltd. Vs. ITO (ITAT Mumbai) - The Transfer Pricing Officer has simply estimated the arm's length price of the transaction on estimate basis without applying any one of the approved methods. This cannot be accepted....

Read More

High Turnover Company cannon be compared with Low Turnover Company

Zynga Game Network India Pvt. Ltd. Vs DCIT (ITAT Bangalore) - Zynga Game Network India Pvt. Ltd. Vs DCIT (ITAT Bangalore) We note that Ld.AO/TPO has applied filter of more than Rs. 1 crore, but did not put an upper limit to the filter. This Tribunal in case of Genesis Integrating Systems India Pvt Ltd vs DCIT reported in (2012) 53 SOT 159 and various other [&h...

Read More

Addition for Non-Bonafide change in revenue recognition method justified

UL India Pvt. Ltd. Vs DCIT (ITAT Bangalore) - UL India Pvt. Ltd. Vs DCIT (ITAT Bangalore) The next issue relates to the addition made rejecting the claim of change in method of revenue recognition. The Ld A.R fairly admitted that this issue has been decided against the assessee by the co-ordinate bench in AY 2009-10 (referred supra). We notice ...

Read More

If agent been paid at ALP than existence of DAPE is wholly tax-neutral

ADIT Vs Asia Today Limited (ITAT Mumbai) - ADIT Vs Asia Today Limited (ITAT Mumbai) It has not been the case of the revenue authorities at any stage that the remuneration paid to the Indian agent is not an arm’s length remuneration for the services rendered by the agents concerned, yet a prayer is now made that the matter should be sen...

Read More

Govt notifies extend due dates of Tax Audit/ITR/VSV Scheme

Notification No. 93/2020-Income Tax [S.O. 4805(E).] - (31/12/2020) - Govt notifies extend due dates of Tax Audit/ITR/VSV Scheme vide Notification No. 93/2020-Income Tax dated 31st December, 2020 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. 93/2020-Income Tax New Delhi, the 31st December, 2020 S.O. 4805(E).—In exercise...

Read More

Govt extend due dates of Tax Audit/ITR/VSV Scheme/GSTR 9/9A/9C

NA - (30/12/2020) - In view of the continued challenges faced by taxpayers in meeting statutory compliances due to outbreak of COVID-19, the Govt further extends the dates for various compliances. Due date for filing ITR (Non tax audit) extended till 10/01/2021. Due date for filing Tax Audit and TP Audit Report extende...

Read More

Tolerance range for wholesale trading & other cases for AY 2020-21

Notification No. 83/2020-Income Tax [S.O. 3660(E)] - (19/10/2020) - Notification No. 83/2020-Income Tax Central Government hereby notifies that where the variation between the arm's length price determined under section 92C of the said Act and the price at which the international transaction or specified domestic transaction has actually been undertaken does not exc...

Read More

Mutual Agreement Procedure (MAP) Guidance by CBDT

MAP GUIDANCE/2020 - (07/08/2020) - Though erstwhile rules 44G and 44H were in existence for a number of years, detailed information regarding MAP processes and guidance on issues related to such processes were not available in a comprehensive and consolidated manner....

Read More

CBDT Amends Income Tax Rule 10CB

Notification No. 76/2019-Income-tax [G.S.R. 701(E)] - (30/09/2019) - CBDT Amends Income Tax Rule 10CB -Computation of interest income pursuant to secondary adjustments vide Notification No. 76/2019-Income-tax dated 30th September, 2019. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) New Delhi, the 30th September, 2019 Notification No. 76/...

Read More

Recent Posts in "Transfer Pricing"

Suo-motto disallowance by Assessee cannot be disregarded by AO without recording his Satisfaction

Greatship (India) Ltd. Vs DCIT (ITAT Mumbai)

Greatship (India) Ltd. Vs DCIT (ITAT Mumbai) The assessee has further assailed the disallowance worked out by the A.O under Sec. 1 4A r.w Rule 8D, on the ground that there was no recording of an objective satisfaction by the A.O that the suo-motto disallowance offered by the assessee under Sec. 14A was not correct. […]...

Read More

Understanding Transfer Pricing Regulations in India

The Ministry of Finance’s concerns regarding possible tax avoidance practices by manipulations in the prices charged or paid, in intra-group transactions, started increasing gradually with the increase in the economic activity reported by these Multi-National Companies. These concerns prompted the then Indian Government to eventually in...

Read More

TPO cannot determine arm’s length price on estimate basis without applying any one of approved methods

Dow Corning India Pvt. Ltd. Vs. ITO (ITAT Mumbai)

The Transfer Pricing Officer has simply estimated the arm's length price of the transaction on estimate basis without applying any one of the approved methods. This cannot be accepted....

Read More

Opportunities that Covid has Opened for A Transfer Pricing Strategy

Regarding transfer pricing, when it comes to analyzing comparables, the vast majority of analysts rely on the comparative evaluation of the returns of a controlled entity versus the returns of comparable entities. In this economic crisis caused by COVID, the above is a serious problem, which is worth taking into account, since if the perf...

Read More

High Turnover Company cannon be compared with Low Turnover Company

Zynga Game Network India Pvt. Ltd. Vs DCIT (ITAT Bangalore)

Zynga Game Network India Pvt. Ltd. Vs DCIT (ITAT Bangalore) We note that Ld.AO/TPO has applied filter of more than Rs. 1 crore, but did not put an upper limit to the filter. This Tribunal in case of Genesis Integrating Systems India Pvt Ltd vs DCIT reported in (2012) 53 SOT 159 and various other […]...

Read More

Addition for Non-Bonafide change in revenue recognition method justified

UL India Pvt. Ltd. Vs DCIT (ITAT Bangalore)

UL India Pvt. Ltd. Vs DCIT (ITAT Bangalore) The next issue relates to the addition made rejecting the claim of change in method of revenue recognition. The Ld A.R fairly admitted that this issue has been decided against the assessee by the co-ordinate bench in AY 2009-10 (referred supra). We notice that this issue has […]...

Read More

If agent been paid at ALP than existence of DAPE is wholly tax-neutral

ADIT Vs Asia Today Limited (ITAT Mumbai)

ADIT Vs Asia Today Limited (ITAT Mumbai) It has not been the case of the revenue authorities at any stage that the remuneration paid to the Indian agent is not an arm’s length remuneration for the services rendered by the agents concerned, yet a prayer is now made that the matter should be sent back […]...

Read More

DAPE wholly tax-neutral if remuneration to agent was paid at ALP

Additional Director of Income Tax Vs Asia Today Limited (ITAT Mumbai)

Once the existence of dependent agency permanent establishment was wholly tax-neutral, unless it was shown that the agent had not been paid an arm's length remuneration, and when it was not the case of AO that the agents had not been paid an arm's length remuneration, the question regarding the existence of dependent agency permanent esta...

Read More

TNMM is best Method to benchmark international transactions with AE

DCIT Vs Knorr Bremse India Pvt. Ltd. (ITAT Delhi)

DCIT Vs Knorr Bremse India Pvt. Ltd. (ITAT Delhi) TNMM is the Most Appropriate Method to benchmark the international transactions entered into by the taxpayer with its AE qua professional consultancy services (information technology) and fee for management support services but TPO, for the reasons best known to him and to our mind to gene...

Read More

Negative working capital adjustment shall not be made in case of a captive service provider

Lam Research (India) Pvt. Ltd. Vs DCIT (ITAT Bangalore)

Lam Research (India) Pvt. Ltd. Vs DCIT (ITAT Bangalore) It was submitted that Working capital adjustment is made for the time value of money lost when credit time is given to the customers. The Assessee however does not bear any risk and has no working capital contingencies. The Assessee has not incurred any expenses for […]...

Read More

Browse All Categories

CA, CS, CMA (5,342)
Company Law (7,090)
Custom Duty (8,393)
DGFT (4,505)
Excise Duty (4,468)
Fema / RBI (4,613)
Finance (4,880)
Income Tax (36,524)
SEBI (3,894)
Service Tax (3,695)

Search Posts by Date

April 2021
M T W T F S S
 1234
567891011
12131415161718
19202122232425
2627282930