MNC can now appeal with CIT (A) too in respect of transfer pricing related disputes

This is good news for Multi-national companies (MNCs) operating in India. Over 1,600 such companies, who were asked to pay additional corporate taxes on account of their overseas transactions, now, have the option to appeal before the conventional forum of Commissioner (Appeal) as well as Dispute Resolution Panel (DRP) for redressal of their grievances. An appeal before the commissioner (Appeal) may take a year or two for a decision.

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Clarification regarding filing of Objections before Dispute Resolution Panel (DRP)

F. No. 142/22/2009-TPL (Pt. II) , Dated: 20th January 2010

Subject: Clarification regarding filing of Objections before Dispute Resolution Panel (DRP) – reg

A new section 144C was inserted in the Income-tax Act, 1961 vide Finance (No. 2) Act of 2009. Section 144C provides for constitution of a Dispute Resolution Panel (DRP) to decide cases of an eligible assessee as defined in sub-section (15) of section 144C of the Income-tax Act. The Dispute Resolution Panel Rules were notified vide SO No. 2958 (E) dated 20th November 2009.

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Income-tax dispute resolution panel may hit tax collection by Rs 10,000-crore

The government’s tax collections could take a Rs 10,000-crore hit this year due to the setting up of the income-tax dispute resolution panel (DRP) for settling transfer pricing disputes. Such a dispute arises when there is a disagreement between the government and the taxpayer, especially a foreign company, in determining the tax liability of its subsidiary.

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Dispute Resolution Panel – Housing Project

1. Preamble

The present article discusses amendment proposed by Finance Bill (No. 2) 2009 regarding provisions of Dispute Resolution Panel (DRP) and deduction u/s. 80-IB(10).

Though the provisions relating to Dispute Resolution Panel are not a complete code for full and complete resolution of dispute referred to it, it is a step in right direction.

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Dispute Resolution Panel (DRP) to resolve tax disputes of the foreign companies expeditiously

The Finance Act, 2009 inserted a new section 144C in the Income-tax Act providing an alternate mechanism to resolve tax disputes of the foreign companies expeditiously. The Finance Minister, taking cognizance of delays, which take place in any tax litigation, declared in the parliament that “The dispute resolution mechanism presently in place is time consuming and finality in high demanding cases is attained only after a long drawn litigation till the Supreme Court.

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Dispute resolution panels will allow MNCs to sort out their tax disputes in faster and cost effective manner

Multinational companies can now look forward to expeditiously settling their tax disputes in India. The Central Board of Direct Taxes on Monday announced the new rules for creation of special dispute resolution panels (DRP) that will allow foreign taxpayers to sort out their tax disputes in a faster and cost effective manner.

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Dispute Resolution Panel, National Tax Code, Returns and assessment procedures, Appeal, revision and penal provisions in Direct Tax code

Self reporting of Tax Bases & Acknowledgment [Section 148 & 154]

1. Similar to the concept of filing return of income, taxpayers have been required to file ‘Return of Tax Bases’ (‘RTB’)

2. The RTBs have to be filed on or before:

• 30th June – If the person is not a company and does not derive income from business

• 31st August – In all other cases

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