Category: Tata

Budget 2016: 9% tax rate regime for India’s first International Financial Centre

The pet project of Prime Minister Narendra Modi – the International Financial Services Centre (IFSC) – housed in the Gujarat International Finance Tec City – has received a boost in the Union Budget 2016/17. The long pending tax issue has been decided with 9 per cent minimum alternate tax (MAT),… – Continue reading

Tata Steel to refinance $1.5bn offshore debt

Tata Steel’s Singapore arm T S Global Holdings Pte raised $1.5 billion debt to settle outstanding loans, the company said in a statement. Tata Steel group executive director-finance and corporate Kaushik Chatterjee said, “Tata Steel actively reviews all its financing options and seeks to continuously optimise its debt based on… – Continue reading

India: No Transfer Pricing Adjustment In Cases Where AE Is From High Tax Jurisdiction: Mumbai Tribunal

Transfer pricing adjustment cannot be made in a case where the tax rate in the country of the Associated Enterprise is higher than the Indian rate and where, accordingly, establishment of tax avoidance or manipulation of prices or establishment of shifting of profits is not possible. Only after proper application… – Continue reading

Transfer pricing disputes: Apply mind before sending tax demands says Income Tax Appellate Tribunal

MUMBAI: In an order that may benefit multinational and Indian companies that are tied down in transfer pricing disputes with the revenue department, the Income Tax Appellate Tribunal has held that officers must “apply their mind” before firing off tax demands. Assessment officers (AOs) as well as commissioners of the… – Continue reading


The Mumbai Bench of the Income-tax Appellate Tribunal held that an Assessing Officer cannot “mechanically” refer a taxpayer’s international transactions to a Transfer Pricing Officer for a determination of the arm’s length price, but must first independently conclude that the taxpayer did not determine the arm’s length price or did… – Continue reading

Relaxed tax residency rules to help MNCs

Foreign companies with Indian shareholders won’t have to pay taxes here for their worldwide income unless they are managed from India on an everyday basis. If these foreign companies are managed from outside India, whether or not they are promoted by resident Indians, they will have to pay taxes in… – Continue reading

As Maruti and HUL show, royalty is a small price to pay

While stocks such as Hindustan Unilever (HUL) and Maruti Suzuki have outperformed the markets by a wide margin in the last couple of years, the stocks have sustained the performance even over longer periods. Despite the hue and cry over royalty payments by Indian subsidiaries of multinational companies, these companies… – Continue reading

Record View: Amazon morally obliged to pay up their share of tax

WHEN public spending is being slashed in a way that punishes the poor, every firm have a moral obligation to pay their fair share. AMAZON are taking an ever bigger share of the shopping market. Technological advances mean you can order something from their website late at night from your… – Continue reading

Indian banks make a beeline for space in Gujarat’s Gift City

Bank of India, Bank of Baroda, Corporation Bank, Punjab & Sind Bank, HDFC Bank and many others have signed up for space in Gujarat’s International Finance Tec-City (also known as Gift City). In fact, banks are expected to be the first to kick off operations in 2016/17, when the International… – Continue reading

50% of H-1B visas in 2013 went to offshore companies, mostly in India

WASHINGTON, DC: As the US Citizenship and Immigration Services (USCIS) opened its doors to this year’s round of H-1B visa applications, data show that about 50% of last year’s H-1B visas were granted to offshore companies, and the top two of those are based in India – Infosys and Tata… – Continue reading