Transfer Pricing

Meaning of “Associated Enterprises” for “Transfer Pricing” Provisions

Income Tax - Under Section 92A of the Income Tax Act, two enterprises are treated as Associated Enterprises only when one of the enterprises participates in “management, control or capital” of the other enterprise. Section 92A(1) of the Income-tax Act specifies that and “Associated Enterprise” in relation to another enterprise, means an enterp...

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A brief history of Advertisement, Marketing and Promotion Expenses (AMP Expenditure) under Transfer Pricing

Income Tax - ♣ AMP refers to Advertisement, Marketing and Promotion Expenses.♣ AMP Expenses are usually incurred by the company in for increasing the revenue of the company and enhancing the value of the companies brand value....

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Base Erosion Profit Shifting

Income Tax - Base erosion Profit Shifting (BEPS) is one of the emerging and notable issues in the international taxation and one should have basic knowledge of BEPS and its impact on global and Domestic Tax laws and as well as its impact on economic growth of a country. Before we going forward and discuss about “What is […]...

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Curbing the Intangible Shenanigan – Hard to value Intangibles

Income Tax - Anurag Agrawal Introduction Over several decades and in step with the globalisation of the economy, intra group transactions have grown exponentially world-wide especially related to intangible assets. The word “intangible asset” is intended to address something which is not a physical asset or a financial asset, which is capable of b...

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International Perspective on Transfer Pricing Regime

Income Tax - In the aftermath of the second world war, the global trade has continued to develop and has resulted in globalization of trade. In the era of globalization, the fixed boundaries within which a firm used to operate have transcended and firms have integrated their operations around the world, taking advantage of cheap labour and technologic...

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Introduce threshold limit of Rs. 25 crore for SDT documentation requirements: ICAI

Income Tax - The Finance Act 2012 has introduced DTP in spite of existing provisions under the Act which empower the Assessing Officer (AO) to re-compute the income of assessees availing profit-linked deductions if there are transactions with related parties or other undertakings of the same assessee...

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Acceptance of Transfer Pricing MAP and bilateral APA – Reg.

Income Tax - Clarification of India’s position on the acceptance of MAP and bilateral APA in cases of countries where Article 9(2) of OECD Model Tax Commentary is absent...

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Guidance Note on Transfer Pricing Report U/s. 92E of Income Tax Act, 1961

Income Tax - ICAI has released the 6th Edition (November 2017) of the Guidance Note on Report Under Section 92E of the Income Tax Act, 1961 (Transfer Pricing). This Guidance Note was previously revised in February, 2013 , August 2013 and October 2016. The ICAI has revised Guidance note on Report under Section 92E of the Income Tax […]...

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Fighting Tax Crime: The Ten Global Principles

Income Tax - This report sets out the 10 essential principles for effectively fighting tax crimes. It covers the legal, institutional, administrative, and operational aspects necessary for putting in place an efficient system for fighting tax crimes and other financial crimes. It draws on the insights and experience of jurisdictions around the world. ...

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Effective Inter-Agency Co-Operation in Fighting Tax Crimes and Other Financial Crimes (Third Edition)

Income Tax - This report describes the current position in 51 countries as to the law and practice for domestic inter-agency co-operation in fighting tax crimes and other financial crimes including, for the first time, co-operation with authorities responsible for the investigation and prosecution of corruption. It identifies successful practices base...

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AD-Hoc determination of ALP by TPO Not Sustainable in Law

Ms CLSA India Private Limited Vs DCIT (ITAT Mumbai) - Ms CLSA India Private Limited Vs DCIT (ITAT Mumbai) ITAT Mumbai held that AD-Hoc Determination of Arm’s Length ALP) Price By Transfer Pricing Officer (TPO) Not Sustainable in Law. FACTS – Assessee is a subsidiary of Credit Lyonnais Securities Asia, Netherland. Return of assessee was selected for...

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Applicability of transfer pricing provisions to investment made on capital account

Pr. CIT Vs PMP Auto Components Pvt. Ltd (Bombay High Court) - Transfer Pricing provisions on shares purchased at value in excess of FMV was not applicable as the same could only be invoked to bring to tax any income arising from an international transaction....

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ALP Adjustment of International Transaction Restricted to AEs

Terex India (P) Ltd. Vs DCIT (ITAT Pune) - Adjustment on account of arm’s length price (ALP) of international transaction is restricted only to the extent of international transaction with associated enterprises (AE). ...

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Non-reporting of specified domestic transactions U/s 92BA with related parties

ACIT Vs HDFC Bank Ltd. (Bombay High Court) - Transaction of purchase of loan from HDFC ltd. would not cover within the meaning of Specified Domestic Transactions (SDTs) as the shareholding of HDFC Ltd. of 16.39% could not be clubbed with the shareholding of the HDFC Investments Ltd. of 6.25% to cross the threshold limit of substantial interest...

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Selection of Most Appropriate Method – whether mandatory under transfer pricing regime?

M/s. CLSA India Private Limited Vs DCIT (ITAT Mumbai) - M/s. CLSA India Private Limited Vs DCIT (ITAT Mumbai) Facts of the case: The assessee company, i.e. CLSA India Private Limited is a subsidiary of Credit Lyonnais Securities Asia (CLSA) incorporated in Netherlands. The assessee is primarily engaged in the business of equity broking. The assessee’s ...

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Draft Amendment To Transfer Pricing Rule 10CB related to Computation of Interest Income U/s 92CE

F. No. 370142/12/2017-TPL - (19/06/2018) - Amendment in Rule 10CB of Income-tax Rules, 1962 in respect of computation of interest income pursuant to secondary adjustment made under section 92CE of Income-tax Act, 1961 – Comments and suggestions ...

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Draft notification proposing amendment to rule 44E, Form 34C, 34D & 34DA

F.No.370142/34/2016-TPL (Part) - (10/04/2018) - Draft notification proposing an amendment to rule 44E, Form 34C, 34D and 34DA as per BEPS action item 5, for improving transparency in relation to tax rulings– comments and suggestions...

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CBDT notifies rules for Country-By-Country Report and Master File rules

Notification No. 92/2017-Income Tax [S.O. 3497(E)] - (31/10/2017) - Information and documents to be kept and maintained under proviso to sub-section (I) of section 92D and to be furnished in terms of sub-section (4) of section 92D. 10DA. (1) Every person, being a constituent entity of an international group shall,-...

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Country-by-Country reporting & furnishing of master file- Draft TP rules

F. No. 370142/25/2017-TPL - (06/10/2017) - It is proposed to insert rulac 10DA, 10DB and form nos. 3CEBA to 3CEBE in the Income-tax Rules, 1962 (`the Rules'), laying down the guidelines for maintaining and furnishing of transfer pricing documentation in the Master File and Country-by-Country report. In this regard, the following guidelines a...

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CBDT Amends Form No. 3CEFA related to Application for Opting for Safe Harbour

Notification No. 62/2017-Income Tax [G.S.R. 891(E)] - (18/07/2017) - These rules may be called the Income-tax (21st Amendment) Rules, 2017.They shall come into force and shall be deemed to have come into force from the 1st day of April, 2017. In the Income-tax Rules, 1962, in Appendix II, in Form No. 3CEFA, in paragraph 2, under the heading Eligible International Tra...

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Transfer Pricing’s Popular Posts

Recent Posts in "Transfer Pricing"

AD-Hoc determination of ALP by TPO Not Sustainable in Law

Ms CLSA India Private Limited Vs DCIT (ITAT Mumbai)

Ms CLSA India Private Limited Vs DCIT (ITAT Mumbai) ITAT Mumbai held that AD-Hoc Determination of Arm’s Length ALP) Price By Transfer Pricing Officer (TPO) Not Sustainable in Law. FACTS – Assessee is a subsidiary of Credit Lyonnais Securities Asia, Netherland. Return of assessee was selected for scrutiny and international transaction ...

Read More

Applicability of transfer pricing provisions to investment made on capital account

Pr. CIT Vs PMP Auto Components Pvt. Ltd (Bombay High Court)

Transfer Pricing provisions on shares purchased at value in excess of FMV was not applicable as the same could only be invoked to bring to tax any income arising from an international transaction....

Read More

Meaning of “Associated Enterprises” for “Transfer Pricing” Provisions

Under Section 92A of the Income Tax Act, two enterprises are treated as Associated Enterprises only when one of the enterprises participates in “management, control or capital” of the other enterprise. Section 92A(1) of the Income-tax Act specifies that and “Associated Enterprise” in relation to another enterprise, means an enterp...

Read More
Posted Under: Income Tax |

ALP Adjustment of International Transaction Restricted to AEs

Terex India (P) Ltd. Vs DCIT (ITAT Pune)

Adjustment on account of arm’s length price (ALP) of international transaction is restricted only to the extent of international transaction with associated enterprises (AE). ...

Read More

A brief history of Advertisement, Marketing and Promotion Expenses (AMP Expenditure) under Transfer Pricing

♣ AMP refers to Advertisement, Marketing and Promotion Expenses.♣ AMP Expenses are usually incurred by the company in for increasing the revenue of the company and enhancing the value of the companies brand value....

Read More
Posted Under: Income Tax |

Non-reporting of specified domestic transactions U/s 92BA with related parties

ACIT Vs HDFC Bank Ltd. (Bombay High Court)

Transaction of purchase of loan from HDFC ltd. would not cover within the meaning of Specified Domestic Transactions (SDTs) as the shareholding of HDFC Ltd. of 16.39% could not be clubbed with the shareholding of the HDFC Investments Ltd. of 6.25% to cross the threshold limit of substantial interest of 20%. ...

Read More

Base Erosion Profit Shifting

Base erosion Profit Shifting (BEPS) is one of the emerging and notable issues in the international taxation and one should have basic knowledge of BEPS and its impact on global and Domestic Tax laws and as well as its impact on economic growth of a country. Before we going forward and discuss about “What is […]...

Read More
Posted Under: Income Tax |

Selection of Most Appropriate Method – whether mandatory under transfer pricing regime?

M/s. CLSA India Private Limited Vs DCIT (ITAT Mumbai)

M/s. CLSA India Private Limited Vs DCIT (ITAT Mumbai) Facts of the case: The assessee company, i.e. CLSA India Private Limited is a subsidiary of Credit Lyonnais Securities Asia (CLSA) incorporated in Netherlands. The assessee is primarily engaged in the business of equity broking. The assessee’s customers comprise of foreign institutio...

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ITAT should not remand an issue to TPO which can be considered at its end

Sony Pictures Networks India Pvt Ltd Vs ITAT, Mumbai & Ors. (Bombay High Court)

Sony Pictures Networks India appeal: By not dealing with an issue which is otherwise ripe for consideration and instead remanding to the TPO, the Tribunal ensures further litigation and continued uncertainty for both the Revenue and the assessee, non-consideration of the basic submission made at the hearing as recorded, is clearly a mista...

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Curbing the Intangible Shenanigan – Hard to value Intangibles

Anurag Agrawal Introduction Over several decades and in step with the globalisation of the economy, intra group transactions have grown exponentially world-wide especially related to intangible assets. The word “intangible asset” is intended to address something which is not a physical asset or a financial asset, which is capable of b...

Read More
Posted Under: Income Tax |

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