Reopening of assessment cannot rest solely on an audit party's opinion; reassessment under Section 147/148 is impermissible and power of revision shou...
Tested party selection: functional analysis identified the least complex unit as the appropriate tested party, altering the transfer pricing adjustmen...
The note addresses TDS obligations where payments calculated as fixed percentages of net sales were treated as reimbursements; it states that such payments lacked bills or vouchers and were contractual consideration for services (advertising, sales promotion, handling, storage). The legal principle applied is that genuine reimbursements must correspond to verifiable post-facto expenses supported by documentation, whereas fixed-percentage payments that are contractual fall within the TDS charging provisions and require deduction at payment or credit. Consequently, failure to deduct justified disallowance under the relevant tax disallowance provision.
The note addresses TDS obligations where payments calculated as fixed percentages of net sales were treated as reimbursements; it states that such payments lacked bills or vouchers and were contractual consideration for services (advertising, sales promotion, handling, storage). The legal principle applied is that genuine reimbursements must correspond to verifiable post-facto expenses supported by documentation, whereas fixed-percentage payments that are contractual fall within the TDS charging provisions and require deduction at payment or credit. Consequently, failure to deduct justified disallowance under the relevant tax disallowance provision.
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