Tag: Taxation
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Decision in the Vodafone Tax Case
[Posted by Shantanu Naravane] An earlier post mentioned that the decision of the Bombay High Court in the Vodafone case had gone against the petitioners, i.e. Vodafone. However, the text of the judgment which was not available as on the date of that post has become available since, and throws up some interesting issues for…
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Bombay High Court Rules Against Vodafone in Tax Case
[Posted by Umakanth Varottil] The much-awaited judgment of the Bombay High Court in the tax case involving Vodafone has now been delivered. Newspaper reports indicate that the court has decided against Vodafone, although the judgment itself is yet to be available. The Financial Times reports: The Mumbai High Court on Wednesday dismissed a challenge by…
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Daga Capital – A decision with implications for trade in shares and securities
[Posted by Shantanu Naravane] In a case decided less than a month back, a special (3 member) bench of the Bombay ITAT considered and decided a number of tax issues arising with respect to entities dealing in shares and securities. Given the considerable attention devoted on late to financial institutions and mutual funds, this decision…
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The Tax Evasion Debate Revisited
[Posted by Shantanu Naravane] An earlier post here had looked at the interrelation between the ratios of Azadi Bachao Andolan and McDowell on the issue of tax evasion, and concluded that the stricture against tax evasion laid down in McDowell hadn’t been completely laid to rest by Azadi, and that there still was scope for…
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DTAA income now included in total income
[Posted by V. Niranjan] The CBDT has notified that if a DTAA provides that the income of a resident “may be taxed” in the other country, such income will be considered to be part of the total income of the assessee (CBDT Notification No. 91/2008). The notification is available here. The implication is that such…
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Motive to Avoid and Transfer Pricing
[Posted by V. Niranjan] Transfer pricing and arm’s length pricing have become increasingly important subjects over the past few years, with the growing importance of cross-border transactions between companies under the same umbrella organisation, or connected in other ways. Several questions have arisen – the definition of ‘associated enterprises’, the appropriate method of computing transfer…
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Tax Implications of Demergers
[Posted by Umakanth Varottil] (The following post is contributed by Mihir Naniwadekar) Generally, the gains arising from a demerger are exempt from capital gains tax, while those arising from a slump sale are not. But, then, what exactly is a ‘demerger’ for the purposes of the exemption from capital gains tax? Can a demerger ever…
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Are Companies Bound to Deduct TDS on Service Tax?
[Posted by Umakanth Varottil] (The following post is contributed by V. Niranjan) There is some doubt on the course of action that companies should take, as far as TDS on professional fees is concerned. The question, essentially, is this – should TDS be deducted on the amount of the professional fee paid, exclusive of service…
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Supreme Court on Fringe Benefit Taxes
[Posted by Umakanth Varottil] (In the following post Shantanu Naravane, a 4th Year B.A., LL.B (Hons.) student at the National Law School of India University, Bangalore, examines one of the first Supreme Court decisions on fringe benefit taxes) Ever since its introduction by the 2005 Finance Act, the concept of Fringe Benefit Taxes [“FBT”] has…
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The Efficacy of Windfall Profits Tax
[Posted by Umakanth Varottil] In an earlier post, we had discussed how the recent spike in oil prices has raised important issues relating to corporate governance in listed public sector companies. Now, this steep oil price rise has rekindled the debate on the need to impose a windfall profits tax on private oil companies. The…