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Income Tax - Highlights / Catch Notes

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Transfer pricing issue w.r.t. to payment of trademark fee - ...

Income Tax

July 1, 2016

Transfer pricing issue w.r.t. to payment of trademark fee - there exists a direct nexus between the revenue earned by the assessee and the payment of royalty made to the associated enterprise for using brand name, and therefore, it would be incorrect to analyze the transaction of payment of royalty in isolation. - AT

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  1. Transfer of right to use trademark - The sales tax is leviable on the turnover of sales in respect of transfer of right to use any goods - HC

  2. TP adjustment on account of payment of overseas support fee - The assessee has its head office outside India and the decision, on the basis of which the assessee gets...

  3. Intellectual Property Rights Service - Reverse Charge Mechanism - payment made to Fosters Australia towards permanent transfer of Fosters trademark and brand under the...

  4. Nature of franchise fees paid - capital or revenue expenditure - Right to use the trademark, domino’s name and logo – Exclusive license – Held as revenue expenditure - AT

  5. Non deduction of TDS on payment for professional fees as towards directors salary - Unless employee employer relationship exists, no TDS u/s 194J before 1.7.2012 - AT

  6. Transfer pricing adjustment - international transaction relating to acquisition of intangible assets by assessee from its associated enterprise - All the additions...

  7. Transfer of company / shares without consent - change of hand of the asset including the land in question - authority rightly issued notice demanding transfer fee from...

  8. Transfer pricing adjustment - selection of comparable - AO/TPO is directed to work out the ALP of the assessee with direction - AT

  9. Transfer pricing adjustment - royalty payment - rejecting the entire payment without there being any analysis cannot be accepted - AT

  10. Infringement of trademark - defendant's trademark FREEDOM is deceptively similar to that of the plaintiff's trademark FREEMANS - HC

 

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