Home Case Index All Cases Customs Customs + AT Customs - 2011 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (2) TMI 863 - AT - CustomsImport - Valuation of computer software - relating parties - Transfer price agreed to between the foreign supplier and the Appellant - The transfer prices are normally scrutinized by the Income Tax Department considering the whole gamut of issues relevant and with better focus on the overall accounts of the company unlike the customs department which compares prices for the product billed to other importers - The matter of transfer prices is to be determined by in-depth analysis of the books of accounts and not to be simply rejected on the basis of list price of the commodity for retail sale - No evidence of price for sale at the same commercial level and same quantity level is produced by the department - No case is made out that the Income Tax department found the prices to be vitiated - Once the Transfer Prices Agreement for the products or services is not objected to by the Income-tax Department a case that the value of goods has been transferred to service has to be proved with more meaningful evidence rather than a comparison with list price for sale to retail buyers especially when evidence exists for discounts given even to retail buyers. The services availed by the importer from their holding company, for which CSC is paid, are likely to be chargeable to service tax under Section 66A of the Finance Act, 1994 and it is open to the Customs authorities to notify the concerned service tax authorities for taking action as permitted under law for recovery of service tax if not already paid.
|