Rule 10B of Income Tax Rules provides methodology for computation of ALP. Under TNMM, ‘net profit’ is used as benchmark for ALP computation. Rule 10B(1)(e)(i) provides for considering “net profit margin realised by the enterprise from an international transaction or SDT entered into with an associated enterprise”. Rule 10B(1)(e)(ii) provides for computation of ‘net profit […]
APPLICABILITY OF TDS ON REPAIR AND MAINTENANCE SERVICES
As per the provisions of Section 9(1)(vii) of the Act payment by resident to non-resident is liable to tax in India if the payment is towards ‘Fees for Technical Services’ (“FTS”). Explanation 2 under Section 9(1)(vii) defines the term FTS. FTS is defined to include consideration for services of managerial, technical or consultancy nature, including […]
DONATION – WHETHER OPERATING OR NON-OPERATING FOR PLI COMPUTATION
Rule 10B of Income Tax Rules provides methodology for computation of ALP. Under TNMM, ‘net profit’ is used as benchmark for ALP computation. Rule 10B(1)(e)(i) provides for considering “net profit margin realised by the enterprise from an international transaction or SDT entered into with an associated enterprise”. Rule 10B(1)(e)(ii) provides for computation of ‘net profit […]
Powers of Tribunal
Hon’ble Guwahati High Court in the case of Jeypore Timber & Veneer Mills (P.) Ltd. v. CIT [(1982) 137 ITR 415 (Gau)] as follows: “Parliament in its wisdom has conferred upon the Tribunal broad and sweeping powers but at the same time controlled the powers by requisite constriction. The provision of section 254 of the […]
RAM JANMABHUMI TEMPLE CASE (2020) 1 SCC 1 – SOME IMPORTANT OBSERVATIONS OF SC
Historical Rights or Wrong The law cannot be used as a device to reach back in time and provide a legal remedy to every person who disagrees with the course which history has taken. The courts of today cannot take cognisance of historical rights and wrongs unless it is shown that their legal consequences are […]
WHETHER EXPENSES DISALLOWED BY AO CAN BE CLAIMED AS NON-OPERATING IN NATURE FOR OPERATING MARGIN COMPUTATION
Rule 10B of Income Tax Rules provides methodology for computation of ALP. Under TNMM, ‘net profit’ is used as benchmark for ALP computation. During the assessment, the AO may disallow expenditure incurred by the taxpayer on various grounds like they are personal in nature, they are bogus expenditure, etc. The disallowance of the AO would […]
Volkswagen Finance (P.) Ltd. v. ITO (International Taxation) [2020] 115 taxmann.com 386 (Mumbai – Trib.) – Taxability of Celebrity appearance outside India
BACKGROUND The assessee an Indian company, made a payment of US $ 4,40,000, in respect of a celebrity appearance at Dubai. The assessee did not withhold any tax from the said remittance on the ground that the event took place in Dubai, UAE, and the celebrity made his appearance at the event in Dubai and […]
CIT v GE INDIA TECHNOLOGY CENTRE PVT LTD (Kar HC) ITA No. 2013 – ALP OF INTEREST PAID ON ECB
The assessee, GE India Technology Centre Pvt Ltd, is engaged in the business of R&D in the area of material sciences and process technology and providing related software development services. During AY 206-07, the Assessee had obtained 2 External commercial borrowings (ECBs) from its AEs. The rate of interest on ECBs were fixed @ 7.5% […]
PROVISIONS WRITTEN BACK – WHETHER OPERATING OR NON-OPERATING FOR PLI COMPUTATION
Rule 10B of Income Tax Rules provides methodology for computation of ALP. Under TNMM, ‘net profit’ is used as benchmark for ALP computation. Rule 10B(1)(e)(i) provides for considering “net profit margin realised by the enterprise from an international transaction or SDT entered into with an associated enterprise”. Rule 10B(1)(e)(ii) provides for computation of ‘net profit […]
AMORTISATION OF VALUE OF INVESTMENTS – WHETHER OPERATING OR NON-OPERATING FOR PLI COMPUTATION
Rule 10B of Income Tax Rules provides methodology for computation of ALP. Under TNMM, ‘net profit’ is used as benchmark for ALP computation. Rule 10B(1)(e)(i) provides for considering “net profit margin realised by the enterprise from an international transaction or SDT entered into with an associated enterprise”. Rule 10B(1)(e)(ii) provides for computation of ‘net profit […]