Vodafone case law study

Vodafone wins transfer pricing tax dispute case

Like CGP in this case. Consequently, can it be said that the sale of shares in Korea resulted in a capital gain in India which requires Samsung to deduct tax at source under the Indian Income Tax Act. The huge growth in the telecom and other sectors has been substantially done through the Mauritius route.

Concerned commissioners were transferred on punishment postings. This is a legal presumption.

Vodafone wins transfer pricing tax dispute case

For example, central excise duty is exempted for units located in Himachal Pradesh. VIH was therefore required to deduct tax at source.

There are some tax payers who will go to any extent with a religious zeal to ensure that they do not pay any tax at all. Vodafone was not the first case where transfer of shares between non-resident overseas company resulted in a change in control of an Indian company. These will cause massive losses to India and Indians.

In those circumstances, his control over the company may be so complete that it is his alter ego. The Honourable Supreme Court has observed as to what is alter ego. Davis which had the same modus operandi and held that all steps can be looked at as one and not to be looked at in isolation.

How does an honest tax payer face the harassment. The fact that TP provisions exist in the Income-tax Act, does not mean that in the absence of TP provisions the assessing officer was not able to tax income transferred outside India.

It is a question of whether or not the shares were disposed of to KDI by the taxpayer. None of the same have even been referred to in the decision. 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.

Does the non-resident have sufficient nexus with India. Having considered the decision by Honourable SC, let us see some principles of law. By India was being considered as an investment opportunity. Not a single asset of this Mumbai based company was transferred either in India or abroad.

Analysis of the Vodafone Case II. Income-tax Department has been consistent in its approach from till date. You have shifted the situs of entire operating company to a tax haven and avoided the tax. All this planning was worthwhile when tax rates were high.

The third one on page 4 states: Indeed, there would be no transfer of any asset in India. In this case Vodafone had sufficient nexus and it had agreed to abide by the Indian law.

This mechanism is used in regular trade. But the honest tax payer suffers. I do not seek to say that the transfer to FNW was not a transfer. One can give a series of illustrations on aggressive drafting of the law.

He has already saved the cost of harassment and much more. Aggressive tax planning is the Cause of all Causes for grievances. As we have already submitted earlier, this transaction is liable to tax in India.

Vodafone Case Study - Free download as Word Doc .doc), PDF File .pdf), Text File .txt) or read online for free. Scribd is the world's largest social reading and publishing site. Search Search. The Supreme Court of India pronounced the landmark judgment in Vodafone International Holding (VIH) v.

Union of India (UOI). The Bench consisting of Chief Justice S.H Kapadia, K. S. Radha krishnan and Swatanter Kumar quashed the order of High Court of demand of Rs crores as capital gain tax and absolved VIH from liability of payment of Rs crores as capital gain tax in the. Introduction of Case – Vodafone India Services (P) Ltd.

Is a wholly owned subsidiary of Vodafone Tele-Services (India) Holdings Ltd., a non resident company Mauritian entity.

Case Law – Vodafone Case Vs Income Tax Department

Vodafone Holding is AE (Associate Enterprise) of Vodafone India for the purpose of transfer pricing provisions under. News and Events Features Vodafone™ Case Study Mobile optimised sales channel Vodafone is the world’s second-largest mobile telecommunications company with networks inover 30 countries.

Case Law – Vodafone Case Vs Income Tax Department Vodafone India, formerly Vodafone Essar and Hutchison Essar, is the Second largest mobile network in India. Vodafone India launched 3G Services in the country in January – March quarter of and plans to. of law by taking” Vodafone’s written judicial opinion at face value.2 The paper seeks to discern the ‘real law’ arising from the Vodafone case which is more context-sensitive and pragmatic.

2 More simply, the paper perceives this case as an effective context to analyse the predicament of.

Vodafone case law study
Rated 3/5 based on 19 review
Vodafone Tax case - A Case Study for Investments in India - Madhu S - MindTEXT