Transfer pricing rules were introduced in India to check possible losses to the government from cross-border transactions with related parties.
The loan has been offered at a jaw-dropping rate of 3%, and could lead to sizeable savings for Jet, a company official said.
Tax authorities in the Mumbai circle have issued demand notices to a clutch of companies claiming the firms under-reported revenues.
Tax officials have come across 140 individuals who are shareholders or promoters in companies set up in the BVI - a British overseas territory.
According to the dept, in 2009, Shell India had issued Rs 8.7 cr shares to its parent at a price that undervalued the stock by Rs 15,220 cr.
Mumbai region generally accounts for 35%-40 % ofcountry's total direct tax collection, which this fiscal is estimated to touch 5.7 lakh crore.
In a written reply , Spanco admitted that it has received a notice from the service tax department and that it has been dealing with it.
ITAT ruled that even though the testing was carried out with sophisticated technology, payments for the service would not amount to FTS.
The department has taken into account elements like 'marketing intangibles', expenditure incurred for building brand equity in India.
The forthcoming Budget is likely to allow this by incorporating a provision in the Income-tax Act.
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