Understanding the provisions relating to Transfer Pricing under Income Tax Act 1961

1 comments Sunday, June 20, 2010

With the advent of MNCs(Multi National Concerns) a trend has also been adopted by the MNCs to structure their investments and business strategy in such a way that profits are maximized in such jurisdictions where tax rates are low, which give rise to the emerging  problem of transfer pricing all over the world. Many countries have made laws to deal with the issue of transfer pricing. India has been a late enterant in making provisions under the Income Tax Act to tackle the issue of transfer pricing. Although there existed section 92 under Income tax Act 1961 but there were not relevant rules which could help tackle the issue of transfer pricing. Section 92A to 92F had been inserted to deal with transfer pricing by the Finance Act, 2001. Some views are expressed in this article as below explaining provisions under the Income Tax Act 1961 dealing with transfer pricing.

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Validity of the Entry Fees/Tax imposed on the vehicles carrying Pilgrims By State of J & K

1 comments Thursday, June 17, 2010
Jammu and Kashmir government said on 10th June, 2010 that Rs 2,000 would be charged as entry fee per vehicle carrying pilgrims to the cave shrines of Mata Vaishnodevi and Amarnath for a period of 3 days.

According to a notification issued by the government under Jammu and Kashnir Motor Vehicle Taxtion Act, 1957, the vehicles carrying passengers to Mata Vaishnodevi Yatra would be charged Rs 2,000 at entry point for a period of 3 days and after that Rs 2,000 will be charged per day.

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Compulsory Maintenance of books of account under Income Tax Act 1961

19 comments Saturday, June 5, 2010
It is generally seen that there is confusion among taxpayers about maintenance of books of accounts under Income Tax Act like who is required compulsorly to maintain the books of accounts and for how many years one has to keep his books of accounts.  Some views are expressed on this topic as follows:

Maintainence of books of accounts by Professionals: Section 44AA of Income Tax Act and rule 6F of Income Tax rules deal with the provisions regarding maitenance of books of accounts under Income tax Act. As per section 44AA(1) read with rule 6F the persons carrying on any of the profession as mentioned below are required to maintain books of accounts and other documents as may enable the assessing officer to compute his total income, if yearly gross receipts of the profession exceeded  Rs 150000
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