The Finance Minister has introduced the Budget 2021 in the Parliament amidst the great turmoil caused globally by the pandemic. All governments have had to grapple with the human and economic travails. The budget aims to increase public spending to steer the economy from its worst contraction in decades. In these dire circumstances, the budget has proposed amendments to the Income-tax Act, 1.....

The President has given assent on 27 March 2020, to the Finance Act, 2020 passed by the Parliament with many amendments. Enclosed herewith is an analysis of the key direct tax amendments made along with the changes made to the provisions of equalisation levy, to the Finance Bill, 2020, which have wide ramifications. CLICK HERE TO READ. .....

Dear Reader, The Parliament has promulgated “The Direct Tax Vivad Se Vishwas Act, 2020” (the Scheme) with the aim of reducing the pending litigation in respect of the direct tax matters. The Scheme has been amended, providing clarifications on certain debatable issues and its coverage has also been widened. Please find enclosed herewith VTPA Tax Bulletin&nb.....

The Hon’ble Mumbai Income-tax Appellate Tribunal (Mum ITAT) has evaluated and held that the reduction in share capital amounts to a ‘transfer’ u/s 2(47) and thereby gives rise to capital gains, if consideration is paid for such reduction. Please find attached herewith our Tax Bulletin on the decision of the Mumbai ITAT in the case of Carestream Health Inc. CLICK HERE TO REA.....

The Parliament has promulgated “The Direct Tax Vivad Se Vishwas Act, 2020” ( the Scheme) with the aim of  reducing the pending litigation in respect of the direct tax matters. The Scheme, is strict in its application and also in the litigation to be covered. The Scheme could have been more liberal and encompassed other connected litigation to fulfill its aim to curb litigation......

In the backdrop of the economic slowdown, the Hon’ble Finance Minister has presented the 2020 Union Budget. However, the budget does not live up to the expectations of the various stakeholders. The largesse shown to the corporate sector, by the Taxation Laws (Amendment) Act, 2019, has not been followed up with any concession to individual taxpayers, which could have given a.....

Please view our Presentation given before the Bombay Chartered Accountant Society on Overview of Transfer Pricing Regulation. CLICK HERE TO READ. .....

The Lok Sabha has passed the Finance (No. 2) Bill, 2019 on July 18, 2019, which was presented originally in the Lok Sabha on July 5, 2019. Certain changes have been made to the original Bill. An analysis of the key direct tax amendments is enclosed herewith .....

In the first budget after the formation of new government, India's first lady full-time Finance Minister has provided a thrust to the infrastructure, digital, startup and agrarian economy, with the hope that it may stimulate growth. Enclosed herewith is the Tax Bulletin analyzing the direct tax proposals as stated in the Budget. .....

Bombay High Court Ruling: The CBDT is empowered to lay down broad guidelines for disposal of appeals by CIT(A). However, it cannot offer ‘incentives’ to CIT(A) for making enhancement and levying penalty. Such policy transgresses the exercise of quasi-judicial powers of the CIT(A) and is wholly impermissible and invalid under section 119 of the Act.   The Chamber of Tax Consu.....

  Supreme Court Ruling: Effect of dismissal of SLP filed before the Supreme Court Khoday Distilleries Ltd. vs. Mahadeshwara Sahakara Sakkare Karkhane Ltd. [Civil Appeal No. 2432 and 2433 of 2019] / [2019] 104 taxmann.com 25 (SC) Facts of the case: Mahadeshwara Sahakara Sakkare Karkhane Ltd. (MSSKL) had recoverable dues of around INR 1,00,76,630/- crores, along with interest.....

Please view our Presentation given before the Bombay Chartered Accountant's Society on Recent Developments in Transfer Pricing. .....

Bombay High Court Ruling: Whether the Transfer Pricing Officer can examine any specified domestic transaction, even if the same is not specifically referred to him by the Assessing Officer?   Times Global Broadcasting Company Ltd vs. Union of India & Ors.  [Writ Petition No. 3386 of 2018] [2019] 103 taxmann.com 388 (Bombay)   Facts of the case:   .....

Bombay High Court Ruling:   The shareholdings of parent company and its subsidiary cannot be clubbed for the purposes of determining the threshold of ‘substantial interest’ as specified in explanation (a) to section 40A(2)(b).   Acquisition of an asset (purchase of loans) from subsidiaries would not amount to  expenditure and is thus not a specified .....

Please read our article on the topic - Analysis of the Samsung Case on the Determination of a Permanent Establishment for Services Provided by Seconded Employees of a Korean Parent to Its Subsidiary in India. The said article is published by the International Bureau of Fiscal Documentation (popularly known as IBFD) in The International Transfer Pricing Journal, number 5, volume 25, the S.....

Mumbai ITAT Ruling - Section 92 of the Act is not an independent charging section to bring in a new head of income or to charge tax on income which is otherwise not chargeable under the Act. Accordingly, the ITAT held that, if no income accrues or arises or is received by the assessee under section 5, no notional income can be brought to tax under section 92 of the Act.   Shilpa Shetty .....

Please read our article on ‘Permanent Establishment - Analysis of Recent Rulings (MasterCard and Nokia Networks)’, published by the Chamber of Tax Consultants, in Hot Spot column - July 2018. .....

The Central Board of Direct Taxes (CBDT) vide Notification No. 33/2018/F.No. 370142/9/2018-TPL dated 20 July 2018 has amended the Income-tax Rules, 1962 (the Rules), under the powers conferred by section 44AB read with section 295 of the Income-tax Act, 1961 (the Act). Following are key new reporting requirements incorporated in Form no. 3CD and the same are effective from 20 August 2018:  .....

Please read our article on Analysis of the Supreme Court Judgments on Permanent Establishment of Morgan Stanley & Co. Inc. and Formula One World Championship Ltd. The said article is published by the Chamber of Tax Consultants (CTC) in its Publication on 101 Supreme Court Landmark Judgments, encompassing within its ambit Direct and Indirect Taxes and Allied Laws.   .....

Please read our article on The Bombay High Court Decides Whether the CUP Method Can Be Applied to Customized Goods published by the International Bureau of Fiscal Documentation (popularly known as IBFD) in The International Transfer Pricing Journal, number 4, volume 20, the July/August 2018 issue, under the topic Derivatives & Financial Instruments. .....

The CBDT has issued the Final Notification No. 29/2018 dated 22 June 2018 (applicable from AY 2017-18) for exception, modification and adaptation in respect of a foreign company said to be resident in India due to its place of effective management (POEM) being in India, under Section 115JH of the Income-tax Act, 1961 (the Act). This is on the similar lines of the draft notification. To read our ta.....

Authority for Advance Rulings, New Delhi– Whether the Applicant has a permanent establishment in India as regards the use of a global network and infrastructure to process card payment transactions for customers in India and as regards other related issues? MasterCard Asia Pacific Pte Ltd, In re. [AAR No. 1573 of 2014] / [2018] 94 taxmann.com 195 (AAR - New Delhi)   Fac.....

Delhi ITAT (Special Bench) Ruling – Whether the Indian subsidiary of the assessee constitutes Permanent Establishment (PE) of the assessee in India on account of ‘signing, networking, planning and negotiation of offshore supply contracts in India’? If yes, whether any profit is attributable to the same, and the quantum thereof?   M/s. Nokia Networks OY vs. JCIT, New De.....

Supreme Court Ruling – The Guidance Note issued by Institute of Chartered Accountants of India on lease rental income which helps to compute lease equalisation charges, held to be allowable as a deduction. There is no express bar in the Income-tax Act, 1961 regarding the application of such accounting standards. CIT-VI vs. Virtual Soft Systems Ltd.     [Civil Appeal Nos......

Supreme Court (SC) Ruling – Whether the expenditure incurred (including interest paid on funds borrowed), while purchasing the shares/ stocks of a company for the purpose of gaining control over the investee company or as 'stock-in-trade' (i.e. as a business activity) and not as investment to earn dividends, can be treated as expenditure ‘in relation to income i.e. dividend inc.....

The Lok Sabha has passed the Finance Bill, 2018 with a few amendments. Enclosed is an analysis of the amendments, for your reference. .....

In the first budget since the end of demonetization and GST went online, the Finance Minister has again provided a thrust to the rural and agrarian economy, with the hope that it may stimulate growth. Enclosed herewith the Tax Bulletin analyzing the direct and indirect tax proposals as stated in the Budget. .....

In order to align with the global 3-tier documentation requirements for preventing erosion of tax base, India has legislated the reporting requirements for global and Indian multinational enterprises in the form of Master File and Country-by-Country Report. Please read our Article published by the CVO CA Association, in Feb 2018, ‘CVOCA's News and Views Journal’.....

The Hon’ble Income-Tax Appellate Tribunal, Bangalore, in the case of Texport Overseas Pvt. Ltd. (‘the taxpayer’) held that the omission of clause (i) of section 92BA (definition of Specified Domestic Transaction) by virtue of the amendment of Finance Act, 2017 w.e.f. 01.04.2017, which referred to payments made to related parties covered under section 40A(2)(b).....

CBDT notifies Final Rules with respect to Master File and Country-by-Country report (Notification No. 92/2017)   The CBDT vide Notification No. 92/2017 on October 31, 2017 issued Final Rules (Rule 10DA and 10DB) in respect of keeping, maintaining and furnishing information and documents with respect to Master File and Country-by-Country report (CbCR), as per section 92D and section 286 .....

Please read our article published in The International Transfer Pricing Journal September/ October 2017 Edition on Final Guidance of Place of Effective Management. The Final Guidelines provide guidance on determining the place of effective management for purposes of the residence in India of foreign companies. .....

The Central Board of Direct Taxes (CBDT) on June 15, 2017 issued a Draft Notification (notification) vide F No. 370142/19/2017-TPL for exception, modification and adaptation in respect of foreign company said to be resident in India due to the place of effective management (POEM) being in India, under Section 115JH of the Income-tax Act, 1961 (the Act). This notification shall be deemed to ha.....

The Hon’ble Supreme Court held that Buddh International Circuit constitutes a fixed place permanent establishment (PE) of the foreign taxpayer (Formula One) where the commercial/ economic activity of conducting F-1 Championship was carried out.   Supreme Court of India Formula One World Championship Limited vs. Commissioner of Income-tax, International Taxation - 3, Delhi &.....

The Hon’ble Delhi Income-tax Appellate Tribunal (ITAT) has observed that employees of the foreign enterprise assigned to India for performing marketing and sales functions for the overseas group entities, used the liaison office of one of the group entities in India. Thus, the ITAT held that the assessee had both, a fixed place permanent establishment (PE) and agency PE, in India.  &.....

The Finance Minister in his Budget presented to the Parliament today has aimed at giving maximum benefit to the rural, infrastructure, agricultural sector, etc. in the hope that there would be a fillip to the economy. Trust you will find it an interesting read.   .....

The Hon’ble Hyderabad Income-tax Appellate Tribunal (ITAT), in the case of Lalitha Karan held that the AO is duty bound to refer the matter to the DVO as per the provisions of section 50C(2) of the Income-tax Act, 1961, when on the facts and circumstances of the case, the assessee claims that the value adopted by the stamp duty authorities does not represent the fair market value, due to cer.....

The Kolkata Tribunal has dealt in detail on the concept of base erosion which was relied by the assessee, as its main argument that attribution of income to the foreign associated enterprise, under transfer pricing law, on account of interest on loan given; would automatically mean a deduction granted in law to the Indian associated enterprise.​   Instrumentarium Corporation Limited, .....

The Central Board of Direct Tax (CBDT) after receiving queries from various stakeholders has issued Circular no. 41 of 2016 providing clarification relating to Indirect Transfer [Section 9(1)(i) of the Income-tax Act, 1961 (the Act)]   Indirect Transfer [Section 9(1)(i)] Section 9(1)(i) was amended vide Finance Act, 2012 w.r.e.f. 01.04.1962, by.....

Please view our Presentation given before the Borivali CPE Study Circle of Western India Regional Council (ICAI) on fundamentals principles of transfer pricing and transfer pricing audit. .....

The Hon’ble SC reaffirmed the position under law that CIT is not required to issue any show cause while exercising its suo-motu revision power. The SC having reiterated the position that so long as the view taken by the AO is the possible view, the same ought not to be interfered with by the CIT under section 263 of the Act merely on the ground that there is another possible view of the matt.....

Please read our article published in The International Transfer Pricing Journal May/ June 2016 Edition on Draft Guidance of Place of Effective Management. .....

Madras High Court Ruling – Whether Section 94A(1) of the Act is ultra vires Articles 14, 19, 51, 253 and 265 of The Constitution of India (the Constitution) – Whether Notification No. 86 dated 1.11.2013 issued by the CBDT is ultra vires Section 94A of the Act r.w. Articles 14, 19 and 265 of  the Constitution – Whether Press Release issued by Ministry of Finance titled &ldquo.....

Please read our article published in Global Sports Law and Taxation Reports, March 2016 Edition (GSLTR) on Taxation of sportspersons and artistes. .....

The Finance Minister in his Budget presented to the Parliament today has aimed at giving a fillip to growth and promoting the new age industries. Trust you will find it an interesting read.   .....

Please view our Presentation given before the Bombay Chartered Accountant's Society on functional, comparability and economic analysis under transfer pricing. .....

Please read our Article published by the Chamber of Tax Consultants, in February 2016, ‘The Chamber’s  Journal’ on the BEPS Action Plan with reference to Transfer Pricing - “Action 8-10 Aligning Transfer Pricing Outcomes with Value Creation – focus on law value adding intra-group services”. .....

Please read our article published in International Transfer Pricing Journal, December 2015 Edition (IBFD) on Proposal on Determination of the Arm’s Length Price Using the Range Concept. The article covers the draft guidelines on the application of range concept under transfer pricing regulations in India.  .....

The Central Board of Direct Taxes (CBDT) has issued a very important instruction (Instruction No. 15/2015, dated: October 16, 2015) on the procedure for transfer pricing assessments/audits for international transactions. These instructions will have a far reaching effect on the methodology to be adopted for making reference to the Transfer Pricing Officer (TPO) by the Assessing Officer (AO) and ot.....

Please read our article published in The International Transfer Pricing Journal September/October 2015 Edition on Ruling in Marubeni Case on Benchmarking and Determining Arm’s Length Consideration for the International Provision of Agency and Marketing Support Services. .....

  Mumbai ITAT Ruling - Section 92 of the Act is not an independent charging section to bring in a new head of income or to charge tax on income which is otherwise not chargeable under the Act. Accordingly, the ITAT held that, if no income accrues or arises or is received by the assessee under section 5, no notional income can be brought to tax under section 92 of the Act. Shilpa Shetty .....

Please read our article published in The Bombay Chartered Accountant Journal, April 2015 Edition on Evolving Transfer Pricing Jurisprudence in India. .....

The Gujarat High Court held - the Explanation added to section 80-IB(9) by Finance Act (No.2) of 2009 defining the term ‘undertaking’ to treat all blocks licensed under single contract under New Exploration Licensing Policy (NELP) as a single undertaking with retrospective effect, held to be unconstitutional, violative of Article 14 of the Constitution and liable to be struck down - th.....

The Supreme Court reversed the order of Guahati High Court - definition of “income” in Section 2(24) of the Act is an inclusive one and includes losses also - upheld the clarificatory amendment of Section 143(1A) to be retrospective - the object of Section 143(1A) is the prevention of evasion of tax - provision should apply only to tax evaders - the burden is on the revenue to demonstr.....

Please read our article published in The International Transfer Pricing Journal March/ April 2015 Edition on Analysis of Vodafone Case on Applicability of Transfer Pricing Provisions to Issuance of Equity Shares. .....

The Finance Minister in his first full Budget presented to the Parliament today has aimed at fiscal prudence with a target to reach 7% growth per annum. With a glimpse of curtailed corporate tax rates and budget allocations for ‘Make in India’, the Finance Minister has highlighted towards growth in industrialization over the long-term tenure. Trust you will find it an interesting .....

Please view our Presentation given before the Chamber of Tax Consultants on Recent Developments in Transfer Pricing.  .....

Please view our Presentation given before the Chamber of Tax Consultants on Interpretation of Tax Treaties. .....

Please read our article published in The Chambers of Tax Consultants Journal, November 2014 Edition on Broad Overview of Transfer Pricing Provisions in India and Current Key Issues faced by Taxpayer. The article covers mainly the fundamental issues in the practice of transfer pricing for both cross border and specified domestic transactions.  .....

Bombay High Court Ruling – Whether shortfall in premium of shares issued to non-resident holding company is to be considered as income as defined under the Act – Consequently, whether the said shortfall can be treated as deemed loan – Whether a charging provision can be read into Chapter X of the Act to tax notional income – Whether Chapter X is a code in itself   &.....

Whether TP provisions are applicable to the transaction of gift of shares to AE - Held that a company can also gift - Gift of shares held to be exempt u/s 47(iii) - In the absence of income arising in the case of a gift transaction, provisions of Section 92(1) do not apply - Adjustment on account of corporate guarantee given by assessee on behalf of its AE – Held, no addition on account of o.....

The new Finance Minister in his first Budget presented to the Parliament today has aimed at fiscal prudence and intends the Budget to be a statement of the fiscal policy of the new government for the next 4–5 years, with a target to reach 7–8% growth per annum. There is also an opening up of the economy by way of FDI of 49% in defence and insurance. ​Trust you will find it an in.....

Adjustment on account of corporate guarantee given by assessee on behalf of its AE – Held, no addition on account of issuance of corporate guarantee can be made in absence of any impact on profits, income, losses or assets of an enterprise Adjustment on account of notional interest on share application money advanced to AE pending allotment of shares for a long time - Held that, no inter.....

Hyderabad Tribunal Ruling – Disallowance of management fees by the TPO on the basis that no tangible benefits have accrued to the assessee out of such payment – Whether TPO is justified in disallowing an expenditure in its entirety – When international transactions are benchmarked by applying TNMM[1], can individual expenses be benchmarked again using a different method – H.....

Please view our Presentation given before the Chamber of Tax Consultants on provisions of taxation applicable to non-residents. .....

Please view our Presentation given before the Bombay Chartered Accountant's Society on FAR analysis, most appropriate method and case studies on Specified Domestic Transactions under transfer pricing. .....

Please view our Presentation given before the Western India Regional Council of Institute of Chartered Accountants of India on overview of transfer pricing regulationd in India. .....

Please view our Presentation given before the Bombay Chartered Accountant's Society on overview of Specified Domestic Transactions under transfer pricing. .....

Please view our Presentation given before the forum at Bombay Chartered Accountants' Society on transfer pricing regulation in India and its practical applicability alongwith case studies. .....

Please view our Presentation given before the Western India Regional Council of Institute of Chartered Accountants of India on overview of International Taxation (Double Taxation Avoidance Agreements) & concept of Transfer Pricing regulations in India. .....

Please read our article published in The International Transfer Pricing Journal November/ December 2010 Edition on The Evolution of Transfer Pricing Jurisprudence in India. .....

Please read our Article published by the Income Tax Review, in July 2006, on the International Decisions on Transfer Pricing. .....

VISION To provide niche and specialised value added services to our clients in excess of their expectations. VALUES The firm is built on three founding pillars viz. Honesty, Integrity and Sincerity. The firm thrives on being value leaders, innovative service providers and trusted business partners in providing end-to-end pratical solutions. .....

Recently, VTPA has been recognised as one of India’s Leading Advisers in Transfer Pricing by Expert Guides publication, Euromoney UK 2017 and 2021. VTPA has been rated by International Tax Review as one of the Best Newcomer Tax Firm in Asia. VTPA has been nominated as India’s leading Transfer Pricing and Tax Consultant by International Tax Review - World Tax and by Euromoney Legal M.....

Our team brings a wide gamut of experience in serving clients across the globe. With our diversified clientele, we provide innovative professional tax advisory services. Our focus has been to build strong relationships by providing value added services. We have evolved as a firm of choice for our clients, because of our research, knowledge, ability to provide pratical solutions, personalised.....

India Accepts $241.4 Million from Nokia to Settle Tax Dispute: 24 Apr 2018​ India Exempts Offshore Investment Gains for Foreigners: 2 Feb 2018 India's Profit Shifting Rules May Spur Litigation: Practitioners: 12 October 2017 India Grants Extension for First Goods Tax Payments, Forms: 22 Aug 2017 Corporate Structures ‘Face Heat’ From India's .....

Attainment of Management Objectives Assisting business organizations to attain value potential as per the management vision Mitigating transfer pricing (TP) risk by attributing correct profit to the economic substance of a transaction An end-to-end analysis of the entire value chain and correct demonstration of the actual conduct of business to tax authorities Reducing the g.....

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---Lorem Ipsum Dolor Sit, 22-56-2-9 Sit Amet, Lorem, USA Phone:(00) 222 666 444 Fax: (000) 000 00 00 0 Email: info(at) Follow on: Facebook, Twitter .....

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VTPA founded by Vispi T. Patel in 2009 is a boutique tax firm specialising in direct tax, transfer pricing, international tax, representating before revenue authorities, tax litigation and exchange control regulation matters. Vispi T. Patel, with an experience of over 37 years in the profession, brings expertise in the areas of domestic and international tax, transfer pricing, globa.....

Representing before the Tribunal (ITAT / CESTAT / SAT / NCLT) for various tax and corporate related matters Assisting the clients in  preparation and representation in stay matters Representing clients before other appellate authorities, including the Dispute Resolution Panel Assistance in drafting of appeal memo, submissions, preparation of paperbook, etc. Strategizing the line of.....

Domestic tax planning for various business alternatives Assisting in Tax Planning and restructuring Advisory for various types of transactions Withholding tax analysis, compliance and certification Mitigating compliance risk Assistance in advance tax computations Assistance in computation of corporate taxes and filing returns Assistance in impact analysis&.....

Business Restructuring / Inbound and Outbound Operations Designing an entry strategy Evaluating alternative intermediate holding company jurisdictions Strategy on international tax Tax Treaty Interpretation Permanent Establishment (PE) exposure Attribution of profits to a PE Structuring of revenue / capital flows e.g. Royalty, FTS, Dividend, Interest, Capital gai.....

Foreign Trade Policy Representation Services for Procedural and Policy Level Changes before DGFT Obtaining Various License (Advance License, EPCG, SFIS & such others) and Closure Advisory and compliance management under SEZ, EHTP, STPI & EOU Corporate Governance Setting up of codes & Review Processes and structures for operation of boards Risk m.....

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VTPA  aspire to create innovative and insightful solutions to resolve complex business and tax challenges on the complete spectrum of both direct and indirect tax. Our endeavour is to provide sound legal and professional advice, under one roof, and help organisations in evolving global direct tax compliance policy for mitigating economic and legal risk The team specialises in a w.....

MUMBAI 121, 12th floor, B-Wing, Mittal Court, 224, Nariman Point, Mumbai - 400 021 Mobile: +91 9867635555  Contact Nos.: +91 22 2288 1091 / 92 Email: vispitpatel@vispitpatel.com .....

Vispi T. Patel has an experience of over 37 years in Direct Tax, Transfer Pricing, International Tax, Global Structuring and other allied fields of professional work. He is a Fellow member of the Institute of Chartered Accountants of India. He represents the clients before the revenue and appellate authorities, including the ITAT. He has been nominated as India leading Transfer Pricing Consulta.....

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Suresh Dhoot is a Fellow member of the Institute of Chartered Accountants of India, has over 32 years of professional experience in taxation, transfer pricing, compliance and advisory work. He has been advising clients on domestic tax, international tax and transfer pricing matters. He represents the clients before the revenue and appellate authorities, including the Income-tax Appellate Tribun.....

Kejal P. Savla is a Fellow member of the Institute of Chartered Accountants of India, has over 8 years of professional experience. She has experience in the field of direct taxation, international taxation, transfer pricing. Kejal represents the clients before the revenue and appellate authorities, including the Income-tax Appellate Tribunal. She has authored/ co-authored articles relating to i.....

The Team consists of experienced qualified professionals i.e. 6 Chartered Accountants, 1 semi-qualified, and 1 office administrator who are committed to add value and optimize the benefits accruing to the clients......