News Update

GST - The Court in exercise of its writ jurisdiction, would be disinclined to set aside, much less to stay SCN, more particularly when impugned SCN are adjudication bound: HCGST - Opportunity to file TRAN-1 and TRAN-2 Forms, has been opened to all concerned parties for a period of two months from 01.09.2022 to 31.10.2022: HCStart-Up Certification - Time to brood over!PM shares 3Ts mantra at NITI Aayog Meet - Trade, Tourism & TechnologyFake Invoicing under GST - A clarity searchTata Motors buying Ford India’s factory for Rs 725 CrI-T - Recovery of demand from company directors cannot be resorted to where no satisfaction is recorded about tax not being recoverable from company: HCUS Senate passes Biden’s Inflation Reduction Bill - USD 369 bn for climate actionI-T - Refund payable to an assessee cannot be withheld solely because notice u/s 143(2) has been passed & where no valid reason is given: HCTurkish banks embrace Russian payment systemI-T - Transfer of assessment is invalid where assessee is not given personal hearing before transfer : HCCOVID - 2.15 lakh cases with 161 deaths in Japan + 1.06 lakh cases with 27 deaths in S KoreaI-T - Disallowance of payment on grounds of unexplained gift is upheld where intention to gift money is not clearly established due to entire transaction not being through banking channels : HCNew Colombian President calls for new global strategy to deal with drugs problemI-T - Words 'a one residential' mentioned in Section 54 refers to only one house which can be purchased or constructed and can not be interpreted as 'more than one house' : ITATNigeria to recover lost Benin Bronzes to be returned by London’s Horniman MuseumI-T - Assessee is not required to deduct TDS at time of payment of EDC to HUDA : ITATChina’s military drill simulates assault on Taiwan’s main islandI-T - Amended provisions of Section 54F do not have retrospective effect: ITATCOVID - Positivity rate soars close to 15%; Delhi reports over 2400 fresh cases on SundayST - Matter has been adjourned more than three times, but none appeared on behalf of appellants, thus appeal dismissed for non-prosecution: CESTATIndia to have over 40 Cr air travellers by 2027: ScindiaCX - When sale of goods is on FOR basis, central excise duty cannot be charged on cost of freight from their premises to premises of buyer: CESTATMega blaze at Cuban oil installation - 1 dead; 121 injured & 17 missingCus - Since amount was lying in nature of pre-deposit with department from date of encashment of Bank Guarantee, appellant is entitled to interest from said date under Section 129EE @ 12% p.a.: CESTATLightning strikes - 9 die; 2 hospitalised in MPST - Mere fact that differential amount of service tax was paid by service provider on being pointed out doesn't establish that tax was short paid or was not paid by reason of fraud, suppression or misstatement with an intent to evade payment of service tax: CESTATP Chidambaram alleges India’s institutions are captured & democracy running out of puffCX - The manufacturer/dealers issued only invoices and no goods were dispatched by them with invoices, assessee failed to comply with provisions of Credit Rules, therefore, not entitled to take CENVAT credit on strength of invoices which were not genuine: CESTATIndia, US to conduct high-altitude joint training in Auli near China borderGovt appoints N Kalaiselvi, first woman, to head CSIRUS commits to defend Philippines in case of attack in South China SeaExport of processed food up by 31% to USD 7408 mn in 3 monthsIncome Tax raids mutual fund house in Mumbai
A comprehensive compilation on TP

Fundamentals of India Transfer Pricing
With Reference to US & OECD Guidelines
Authored by Radhika Suri, Advocate, P&H High Court,
Published by Taxmann's Allied Services (P) Ltd
Pages: 208
Price: Rs 375

Legal Corner Icon

Reviewed by TIOL Direct Tax Team

WHAT is Transfer Pricing? What does ALP stand for? How is it calculated? Why does a TPO search for a 'comparable"? What is the big deal about controlled and uncontrolled transaction? Why is FAR so important for tax guys? Not only for a student of fiscal regime but also for an average tax professionals these terminologies contitute an alien class of abbreviations!

However, the facts remain that they form the nucleus of tax tools which are applied for taxing cross-border transactions. With the opening of the economy to the external world India has become a home for myriad number of subsidiaries, JVs and other forms of business entities for trans-national companies (TNCs). India has indeed emerged as a strong magnet for highly mobile global capital. FDI inflows have shown zooming graph in the past few years. And India is destined to witness manifolds increase in international transactions bewteen TNCs and their subsidiaries located in various geographical pockets of the world.

Studies of various multilateral agencies like OECD indicate that the transactions between TNCs, their JVs, subsidiaries and holding companies are going to account for more than 75% of the global trade. And India is also going to see a surge in such transactions. And this quantifies the challenge before the Indian fiscal strategies.

India for the first time incorporated Transfer Pricing provisions in the Income Tax Act in 2001. Since then the CBDT has not done much amendment in the Act except for issuing a few Instructions. However, the law has been evolving at a rapid pace because of the keen analyses by the judicial fora. So far a TP case has reached only the High Court. In other words, a major chunk of contribution to the evolution of TP laws has come from the Income Tax Appellate Tribunal (ITAT) which deserves kudos for taking pain to study the best global practices and implementing the same for interpreation of the Indian TP laws.

This book is the fruit of industrious labour the young author has given to cull even the minute details of the TP laws in India, OECD and particularly the USA with which we have significant volume of trade. The book is a very good compilation of facts, episodes, rules, judicial decisions and administrative measures on this subject. I full agree with the Supreme Court Judge Justice D K Jain who has observed that all aspects of TP have been presented with clarity and making it useful for anybody who is interested in the subject.

The author has indeed made an honest attempt to encapsule many aspects of the subject in the limited number of pages. For the scholars of TP, the only flaw which one may point out in the book is the limited presence of insightful analyses. I am sure such analyses would be an integaral part of this book when it is revised in the future. I wish good luck to the author for a sincere compilation in her maiden intellecutal work.