Section 92A of the Income Tax act provides the meaning of Associated Enterprise, yet there has been considerable litigation around the subject. In this article, we will take a look at what's the much ado all about. Simplifying Section 92A Significance Unless a domestic enterprise is linked with a foreign “associated enterprise”, transfer pricing provisions … Continue reading What constitutes an Associated Enterprise?
Can the scope of a Limited Scrutiny Assessment be Expanded u/s 143(2)?
A limited scrutiny assessment is one which is undertaken by the assessing officer when he/she finds certain discrepancies in the income tax return which he/she believes need to be investigated further. In essence, when the assessing officer has reason to believe that a certain amount of income of the assessee has escaped the tax net … Continue reading Can the scope of a Limited Scrutiny Assessment be Expanded u/s 143(2)?
Unexplained Cash Credits: Who bears the burden of proof?
Section 68 of the Income Tax Act, deals with unexplained credit whose nature and source cannot be satisfactorily explained by the assessee. Section 68 is an effective tool in the hands of the assessment authorities to prevent the conversion of black money into any other amount such as share premiums or share capital and escape … Continue reading Unexplained Cash Credits: Who bears the burden of proof?
The Big Picture of Vivad Se Vishwas: A Legal Analytics Case Study
The genesis of all lawsuits lies in a cost-benefit analysis. Fighting a case would rationally only make sense if the end result was to result in a net benefit to the litigant. Usually, said determination is made on the basis of opinions formulated using traditional tools of research. Legal research, as we know it today, … Continue reading The Big Picture of Vivad Se Vishwas: A Legal Analytics Case Study
Madras High Court takes on Pharmaceutical Firms
A legal and ethical issue has been brought before the Madras High Court by the tax department raising a conflict in the applicability of the laws applicable to the pharmaceuticals company and the allied health industry. The developments are almost Shakespearean. In Shakespeare's play - Macbeth - Macbeth asks the three witches to predict his … Continue reading Madras High Court takes on Pharmaceutical Firms
OECD Transfer Pricing Guidance on Financial Transactions: Need to Introspect Arm’s Length Financial Arrangements
On 3 July 2018, the Organisation for Economic Co-operation and Development (‘OECD’) released the first public discussion draft on the transfer pricing aspects of financial transactions (‘the Discussion Draft’). What was in the Discussion Draft? Clarification on the application of the principles covering the accurate delineation of financial transactions Address specific issues related to the pricing of … Continue reading OECD Transfer Pricing Guidance on Financial Transactions: Need to Introspect Arm’s Length Financial Arrangements
Will OECD’s “Unified Approach” change the way we think tax?
Digital transformation of the world’s economy is changing the way businesses are operating globally. The business models and value creation processes of the digitalized enterprises typically have the following features - Access all the links in this article by signing up for free with Riverus Research Map for income tax here. cross-jurisdictional scale without physical … Continue reading Will OECD’s “Unified Approach” change the way we think tax?
LIBOR Waning – The Countdown has begun – Is India geared up for the transition?
A crucial shift from the use of the London Interbank Offered Rate (LIBOR) is gaining momentum, with news looking at the end of LIBOR by December 2021. This raises an alarm for a closer relook and maybe a tweak, on all transactions involving the use of this historically dependent base rate. Key tax/transfer pricing implications … Continue reading LIBOR Waning – The Countdown has begun – Is India geared up for the transition?
Disallowance under Section 14A: an Analysis
Access all the links in this article by signing up for free with Riverus Research Map for income tax here. There are some heads of income which are considered tax-free or exempt for the purposes of the Income Tax Act (“Act”). On the other hand, the Act allows certain expenses incurred exclusively for earning income … Continue reading Disallowance under Section 14A: an Analysis
The Riverus Advantage Part 3 – Judge Speak
If you are an avid reader, you would in all probability have read the novel 1984 by George Orwell. And if you did, you would remember the concept of Newspeak – a controlled language with restricted grammar and limited vocabulary. In the dystopian reality of the world weaved by the author, Newspeak is a powerful concept. Judge … Continue reading The Riverus Advantage Part 3 – Judge Speak