Vodafone case study tax

Vodafone Wins Tax Case in India

While obliging the court to accept documents or transactions, found to be genuine, as such, it does not compel the court to look at a document or a transaction in blinkers, isolated from any context to which it properly Vodafone case study tax. Section provides for deduction for tax at source upon a payment to a non-resident or foreign company 5.

The Vodafone tax case has given India the opportunity to create a model for other countries, which follow source-based taxation principles6.

This controlling shareholding has its situs in India. Courts may lift the Corporate Veil when a controlling interest is being considered or when a company is incorporated with improper objective. To grasp real impact of this risk, please consider development of Income-tax Act over past several decades.

The proposed DTC says that if 50 per cent of the value of the shares being transferred is derived from assets situated in India, it is deemed to be taxable in India. Our submission is if something is sham, one does not need any legal provision to ignore the sham and go for substance.

The global community is keenly watching the current trends happening in the Indian subcontinent, especially since it has become an emerging player at the socio-economic and political levels. The case dates back to financial year involving the sale of Vodafone India Services Private Ltd.

The Vodafone tax case has given India the opportunity to create a model for other countries, which follow source-based taxation principles.

I believe that they were. And in some cases, even Courts are not given discretion. Impact Vodafone raises pertinent questions on the issue of taxation of non-resident entities. Tax evasion is an improper objective. CGP is a nullity, a sham entity.

Wide scale permissions have been given by GOI to resort to treaty shopping.

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Of course, not all interposing companies are sham or tax avoidant. If one considers only the title document, and not the main transaction, is it correct! A normal view would be that if one non-resident sells shares of a foreign company to another non-resident of India; and the transaction takes place outside India, there can be no tax on the same.

FEMA is a law which is not respected by the powerful in the country. And there will be GAAR.

Case Law – Vodafone Case Vs Income Tax Department

Hence treaty shopping was valid. But when the person himself throws away the veil, he is exposed before the whole world. Going by the events in the lower courts, the Supreme Court is unlikely to disturb the Bombay High Court ruling. They do not build in protection for the honest assessees. Extract from Late Mr.

Really India is Incredible!While the decision is ostensibly a victory for taxpayers who do business in India, the case may be a harbinger of tax concerns in India and other countries. The Vodafone Decision: The primary issue in the Vodafone case was whether India had jurisdiction to tax the indirect transfer of shares of an Indian company between two non-Indian companies.

Vodafone Tax Case 1.

Vodafone wins transfer pricing tax dispute case

Vodafone Tax Case - By Rohit Jain [email protected] fresh-air-purifiers.com 2. The tax dispute between ; and in connection with taxability of the $ billion is one of the biggest controversies in Indian history.

Fact of Case – During the AYVodafone India issue equity share to Vodafone Holding at premium and the same is mentioned in 3CEB in tax audit report.

The issue of share is as follws. The issue of share is as follws. The Indian Supreme Court issued its decision in the landmark Vodafone case on January 20, concluding that India should not tax Vodafone on the sale of a foreign company's shares outside that country, even though the transaction involved an indirect transfer of an underlying Indian company.

The Court.

The Vodafone Case and Its Effects on Indian Taxation (article)

Vodafone Tax Case V/s Arindam Daschowdhury (PGDM ) Deepak B.S. (PGDM ) Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Oct 08,  · Inthe Income Tax Department issued a tax demand of Rs.

3, crore to Vodafone India. However, the IT tribunal stayed the demand during the proceeding of the case and asked Vodafone to deposit Rs. crore by February 15, Author: Lalatendu Mishra.

Vodafone case study tax
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