Tax Litigation

Package Inclusion :

  • Helping in strategizing tax litigation
  • Exploring alternative tax dispute resolution mechanisms
  • Assistance in representation before Commissioner of Income tax (Appeals), Dispute Resolution Panel, Income Tax Appellate Tribunal
  • Assistance in preparation of advance ruling application and representation before AAR
  • Assisting, counseling, preparing, representing appeals and petitions before High Courts and Supreme Court

Tax Litigation

What is Tax Litigation?

Tax Litigation under the Indian judicial system is time consuming. The adjudicating and quasi-judicial appellate authorities act as a fact finding body under the Income Tax Act, 1961 and the constitutional authority .i.e. High Courts and Supreme Court of India.

Currently tax litigation in India takes more than two decades to reach its decisiveness. As per recent report of CAG (Comptroller and Auditor General of India) there are Rs.2.2 lakh crore cases are locked up in appeal out of which in most of the cases the government is the appellant. As the tax authorities are getting more aggressive the number of cases appealing in the court are increasing.

Also most of the tax litigation cases pending at various forums are of multinationals

Tax Litigation often arises in the following areas

Categories of Tax Litigation

Given the lawful maze that taxpayers often face, u judicial cost benefit analysis is required to be done which can help to arrive at a decision of whether it is worthwhile to litigate or the issue is more viable to compromise.

Corporate Tax Litigation Update

1) Permanent Establishment

PE Taxation continues to occupy significant focus in India which indicate the following:

Key Issues faced in PE establishment based on the recent pronouncements are

(i) Sales and Distribution Activities

(ii) Procurement activities

2) Other Issues

a) Implication on gift of shares of Indian company

The transfer of shares by Indian subsidiary by the applicant to its Singapore subsidiary subject to business re-organization scheme without consideration constitutes gift does not attract capital gain tax liability in India

b) Mauritius Treaty Implications

As per the Mauritian DTAA agreement the capital fain arising to the tax payer is not taxable in India

c) Taxability on Promissory notes

Discounting of bills does not result to any debtor or creditor relationship. Hence the discounting of bills is not taxable in India

d) Taxability of Data Processing Fees

As per the India-UK Treaty, there is no transfer of technical skill or know how while providing the services. It means that UK is not rendering any managerial or technical services therefore such payment received is not taxable

Key Services offered by us

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