16 January, 2014
In its recent decision dated 10-1-2014, [Tesco International Sourcing v. DDIT] the ITAT (Bangalore) had occasion to examine ‘Purchase of goods in India for the purpose of export’. Earlier this year the Karnataka High Court in Nike Inc, had observed that the purpose of the said clause was to encourage exports and the activity of the assessee in assisting Indian manufacturers ...
13 December, 2013
Is loss on derivative transactions assessable as business loss? This was the question before the Tribunal in Platinum Asset Management Ltd v. DDIT. The department treated loss from derivative transactions as business loss as against the assessee’s claim of the same being capital loss. The assessee argued that was eligible to set off the same against short-term capital gains ...
Globalization has brought along with it various taxation issues, the most talked about being, transfer price of goods being traded amongst enterprises forming part of a same business group (‘related entities’). The price at which related entities transact is of significance to both taxpayers as well as revenue authorities....
By Bharathi Krishnaprasad
Comparison between Stock Appreciation Rights and Employee Stock Option Plans
Conceptually different from the Employee Stock Option Plan a.k.a ESOP, a household term in India, Stock Appreciation Rights, also known as SARs are a novel way of rewarding the employees of an or...
By Lakshmi Pavan
Last year, the Indian Government introduced a scheme for voluntary declaration of undisclosed foreign income and assets for resident taxpayers under the Black Money Act. A similar scheme is proposed by the Finance Bill, 2016 referred as ‘Income Declaration Scheme, 2016’ (&lsquo...
By Sumeet Khurana
Purpose of section 197
Provisions relating to deduction of tax at source (‘TDS’) do offer the government a good tool of efficient tax recovery but unless counterbalanced with a measure like Section 197, can become a weapon of oppression. Thus, to ensure that taxpayers who don&rs...
By Amar Gahlot
It is basic economics - when it comes to consumption, government has the largest appetite. Government purchases include goods and services obtained from domestic and international suppliers and deployed in myriad projects ranging from defence and railways to infrastructure a...
By Amar Gahlot
Res Judicata is the Latin term for "a matter (already) judged", or "a thing adjudicated". It means a case or suit already decided. It was recently defined as “a final judgment on the merits by a court having jurisdiction is conclusive bet...
By Sumeet Khurana & Ashish Karundia
In this era of rapid globalization, the multinational companies (MNCs) are increasingly outsourcing ‘non-integral’ and ‘non-revenue generating’ (business support) functions to their subsidiaries or to third party vendors, located in low cost jurisdiction such as India. At times, MNCs send their employees, having expertise in the respective field to help the...
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