Thursday, February 16, 2012

TRANSFER PRICING


  • The Hon'able Supreme Court has held that transfer of shares of foreign company by non-resident to non-resident does not attract Indian tax even if object is to acquire Indian assets held by the foreign company.
  • The Pune ITAT has held that TPO is duty bound  to eliminate differences in comparables' data for  working capital if material.
  • The Delhi High Court has held that even if not assessable as "fees for technical services" under  DTAA, bar in s. 44D against deduction of expenses will apply.
  • The Gujarat High Court has held that AO's decision to refer to TPO must be based on material & not be arbitrary. The question as to whether there is an "international transaction" cannot be referred to TPO.
  • The Mumbai ITAT has held that onus on AO to show foreign co has a PE in India. Under India-France DTAA, even dependent agent is not PE in absence of finding that transactions are not at ALP.

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