Brief Note on Domestic Transfer Pricing

Under Section 40A(2) of Income Tax Act, 1961 in case of any transaction with a related party, the Assessing Officer can disallow the expenditure while computing income from business or profession which in his opinion is excessive or unreasonable having regard to the Fair market value of the goods, services or facilities for which expenditure has been incurred. In case the Assessing Officer is of the opinion that such income is low considering the market value, there is NO mechanism to re-compute the income received from a related party, since this section focuses on EXPENDITURE. In order to address this issue, the provisions of Transfer Pricing are being amended to extend the scope to “Specified Domestic Transactions” by amending Section 92 of the Act.

Private Equity deal of Shree Shubham Logistics Limited

Shree Shubham Logistics, an Agri-logistics company, has concluded an agreement to raise Rs. 80 Crores with Tano India Pvt Equity Fund. The company proposes to utilize these funds for its warehousing capacity expansion.

Extension of Due Date of filing Form ST-3

As per F.No.137/99/2011-Service Tax, Order No.02/2013-Service Tax dated 12^th April, 2013, due date for filing of the Form ST-3 for the period 1^st July, 2012 to 30^th Sept, 2012 has been extended to 30^th April, 2013.

Nokia Tax Evasion Case

The Income Tax department has served a more than Rs 2,000 crore demand notice on Finnish mobile firm maker Nokia for alleged evasion of taxes in its business transactions in the country.