Home Case Index All Cases Income Tax Income Tax + AAR Income Tax - 2010 (7) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (7) TMI 51 - AAR - Income TaxTransfer of shares - Taxability - applicability of section 115JB - withholding tax u/s 195 - Application of provisions of Transfer pricing (TP) u/s 92 to 92F - The applicant also holds 74% of the equity shares capital in Jindal Praxair Oxygen Company Private Limited (Jindal Praxair) and the balance 26% is held by JSW Steel Limited. The applicant is proposing to transfer 74% of the equity share capital in Jindal Praxair to its wholly owned subsidiary company, Praxair India - It is the contention of the applicant that the shares of Jindal Praxair held by it are capital assets and the proposed transfer of these to Praxair India would not be 'transfer' for the purpose of computing capital gains under section 45 read with section 47 (iv) of the Act - Held that: - as the applicant is tax resident of Mauritius and has been issued Tax Residency Certificate by the Mauritius Revenue Authority, it would not be subjected to tax in India on the capital gains arising from the proposed transaction in India - under section 115JB, there is no provision to include or exclude or to increase or decrease such income in the Act while determining the book profit. - the view that the provision of section 115JB of the Act is not attracted in the case of the applicant in view of decision in "The Timken Company - 2010 TMI - 77013 - AUTHORITY FOR ADVANCE RULINGS" - the proposed transfer of equity shares by the applicant to Praxair India would not attract the transfer pricing provisions of section 92 to 92F of the Act
|