Dates of the deposit of instruments of ratification: 25th June, 2019 for India and 25th March, 2021 for Hungry. Entry into force of the MLI: 1st October, 2019 for India and 1st July, 2021 for Hungry. Unless it is stated otherwise elsewhere in this document, the provisions of the MLI have effect with respect to the Convention: In India: (a)…
Shapoorji Pallonji Bumi Armada Pvt. Ltd. v. ACIT (Mum.)(Trib.)
In the recent ruling Honorable Tribunal dismissed the rectification application made by the Transfer Pricing Officer (TPO) for the rectification of directions issued by the Dispute Resolution Panel (DRP). Honorable Tribunal state that from a plain and careful reading of Rule 13 of the Income Tax (Dispute Resolution Panel)Rules, 2009 (“the Dispute Resolution Rules”) makes it clear and unambiguous that the rectification powers…
TV 18 Broadcast Limited vs. Asst. CIT ITA No. 1975/Mum/2021 AY 2012-13
Optionally Convertible Debentures (OCDs) aren’t debentures rather in the nature of quasi-capital; throws light on the relevance of the concept of “Quasi Capital” in the context of transfer pricing by relying on the decision given by co-ordinate bench; therefore, no TP adjustment is required where interest-free OCDs are issued by Foreign AE. Facts: However, Ld. TPO brushed aside all above…
CBDT amends Rule 10DA (Requirements in relation to Master File) and Rule 10DB (Procedure and details relating to CbCR) w.e.f. April 1, 2021 vide Notification No 31/2021/F No. 370142/19/2019-TPL
1. Amends Rules 10DA and 10DB of the Income-tax Rules dealing with Master file and CbCR reporting for specified transactions of constituent entities of an international group; 2. Increases consolidated group revenue threshold to determine reporting eligibility from INR 5,500 crores to INR 6,400 crores.
Concessional tax rate of 5% on interest income referred to in Sec. 194 LD not withdrawn
The CBDT has rebutted media reports that concessional tax rate of 5% on interest income referred to in section 194LD as provided by proviso to section 115AD(1)(i) has been withdrawn. The board has clarified that there is no change in the said proviso even after amendment of section 115AD vide Taxation and Other Laws (Relaxation and Amendment of Certain Provisions)…
CBDT notifies Rule 29BA and Form 15E to apply for certificate u/s 195 w.e.f. April 1, 2021
CBDT notifies insertion of Rule 29BA for making an application for grant of certificate determining appropriate proportion of sum chargeable to tax in case of payment made to non-residents under sub-section (2) and (7) of Sec. 195, w.e.f. April 1, 2021. Also, notifies Form 15E [Application by a person for a certificate under section 195(2) and 195(7) of the Income-tax…
MUMBAI ITAT PREFERRED THE DATA GIVEN IN AUDITED FINANCIAL STATEMENTS OVER THE DATA GIVEN IN PROWESS DATABASE FOR CALCLULATION OF PLI
Case Name: M/s Basell Polyolefins India Private Limited v. Asst. CIT [ITA No. 4724 & 4725/Mum/2018] [AY 2009-10 & 2010-11] Outcome: In favor of Assessee Facts: Issues: Observations/findings and decision of Hon’ble ITAT are: “10. Regarding the submissions advanced by both the parties relating to the inclusion/exclusion of the 2 comparables being Goldiam International Ltd. and Punit Commercials Ltd, it…
Vodafone International Holdings BV (The Netherlands) vs. India PCA Case No. 2016-35
In the given case, Vodafone had invoked Clause 9 of the Bilateral Investment Treaty (BIT) signed between India and the Netherlands to challenge the retrospective amendment to tax capital gains of Rs 22,100 crore. In a unanimous decision, the Permanent Court of Arbitration at The Hague has held that the retrospective demand was “in breach of the guarantee of fair…
PCIT vs. Gulbrandsen Chemicals Pvt. Ltd (Gujarat High Court)
Gujarat High Court in the case of PCIT vs. Gulbrandsen Chemicals Pvt. Ltd (Gujarat High Court) explain the importance of OECD Guidelines and state that1. The significance of the aforesaid guidelines lies in the fact that they recognize that barring exceptional cases, the tax administration should not disregard the actual transaction or substitute other transactions for them. The examination of…
Tax Updates- August ’20
Sharing with you “Tax Updates and Compilation of Judicial Rulings of Supreme Court, High Court, Income Tax Appellate Tribunal including rulings in the area of International Taxation and Transfer Pricing_August ’20”. Hope you may find it useful and informative too. #taxation#internationaltax#transferpricing https://www.linkedin.com/feed/update/urn:li:activity:6709320151646392320/