Vodafone case study tax

They make money at the cost of the nation. Smart people go ahead and resort to round tripping. This is a cardinal principle but it must not be overstated or overextended. A long history is stated below in short: The capital gains are liable to Indian Income-tax.

This was a planning done by a tax payer himself. Source-based taxation provides for a taxation regime which goes into the source of the asset which is liable for tax.

Government has been confused. The Greedy Tax Planner is responsible for aggressive amendments in the law.

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Court specifically asked not to look at one solitary transaction out of a series. And the department has lost before the Court of Law in many cases. The proposed Direct Tax Code contains key provisions, which will have a major impact on investments in India5.

Many people have suffered so widely and deeply because of rampant use of the power by TPOs. Section 40A 2 — Excessive domestic payments to related parties [However, no corresponding provision to reduce the income of related party receiving the payment in case of such disallowance] g.

These are autonomous companies. But when the person himself throws away the veil, he is exposed before the whole world.

Some professionals say that Honourable SC could have considered this issue and hence the decision is in favour of the foreign investor. MNCs try several things to avoid such taxes.

Vodafone Group Plc bid for the equity interest. Wide spread movements against the Big Bosses.

Vodafone wins transfer pricing tax dispute case

Transfer of CGP share was one of several documents. A company formed for a special purpose.

TAXATION CASE OF VODAFONE Harvard Case Solution & Analysis

Hence Government went on giving absolute powers to enforcement directorate. I do not think that this conclusion is any way vitiated by Inland Revenue Commissioners v. There is no need even for the deeming provision of Section 9.

Here again, the English Court has gone on to support the dissenting decision of Lord Eveleigh in Floor v. For every assessee who has suffered by an absurd TP order, the root cause is the MNC that did transfer pricing and invited TP provisions.Vodafone is a classic case where they have made huge capital gains because of Indian operations and succeeded in taking away whole gain without paying any tax.

Vodafone wins transfer pricing tax dispute case

Azadi Bachao Andolan & Vodafone decisions together are open licence to people for massive abuse of tax havens & DTA. Vodafone Group won another big tax battle in India as a local court ruled Thursday that it didn’t owe potentially hundreds of millions of dollars in back taxes.

A goal of transfer pricing may be to maximize after tax revenue besides reduction in the total tax paid. It is known fact that the most of the corporate entities are using the method of ‘Window.

Nov 17,  · vodafone tax case Companies rush to reconcile financial results with state wise audit, seek extension of deadline Many companies have also reached out to the government and sought an extension of the deadline for filing the returns.

The Vodafone tax case throws an interesting question on the taxability of a non resident company acquiring shares of a resident company through an indirect route. This is a landmark case, as it is for the first time that the tax departments have sought to tax a company through a mechanism of tracing the source of acquisition.

Supreme Court of India Decision The Supreme Court today ruled in favour of Vodafone in the $2 billion tax case saying capital gains tax is not applicable to the telecom major.

there are no look-through provisions in the Indian domestic tax law to tax the transaction.

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Vodafone case study tax
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