Vodafone India Services Pvt Ltd v Union of India and others : Writ petition No. 871 of 2014

Resource Information

The work Vodafone India Services Pvt Ltd v Union of India and others : Writ petition No. 871 of 2014 represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Vodafone India Services Pvt Ltd v Union of India and others : Writ petition No. 871 of 2014

Creator

• Goradia, S

Contributor

• Baker, P

Subject

• arm's length principle
• case law
• fair market value
• shares

Language

eng

Summary

Judgment by the High Court of Judicature at Bombay (India), judgment date 10 October 2014. The taxpayer was a wholly owned subsidiary of a company not resident in India. The taxpayer required finance from its parent company for its services project in India. This was arranged by the taxpayer issuing and selling the parent company shares in the taxpayer (at Rs 8,509 each). The taxpayer calculated by reference to the Capital Issues (Control) Act 1947 that the fair market value of the shares was Rs 8,519. The Revenue, however, assessed the arm's length price of the shares as Rs 53,775 each (in total leading to a shortfall of over Rs 13bn). The Revenue determined under the transfer pricing provisions of the Income Tax Act 1961 that this amount was income in the hands of the taxpayer and furthermore that it was deemed to be a loan by the taxpayer to the parent company on which interest of some Rs 880m per year was deemed to arise and this was also taxable in the hands of the taxpayer. The taxpayer objected

Citation source

In: International tax law reports. - London. - Vol. 17 (2014),

http://bibfra.me/vocab/relation/comm

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Geographic coverage

Asia

Language note

English