Transfer pricing comparables and operating income principles applied to software development services, with exclusions, inclusions, and tax credit ver...
Transfer pricing on performance guarantees and overdue receivables deleted where warranty obligations were embedded and working capital adjustment alr...
Grant-in-aid received under a government scheme for setting up and modernising a rice milling unit was treated as reimbursement of capital expenditure already incurred, not as consideration for any taxable service. The Tribunal found no service provider-recipient relationship, no evidence of any knowhow or intellectual property being created and transferred, and no contractual counter-obligation arising from the grant conditions. In the absence of consideration for a service, the amount was held outside service tax under the Finance Act, 1994. The demand for tax, interest and penalty was therefore set aside, following earlier decisions treating grant-in-aid or reimbursement, without anything over and above the grant, as non-taxable.
Grant-in-aid received under a government scheme for setting up and modernising a rice milling unit was treated as reimbursement of capital expenditure already incurred, not as consideration for any taxable service. The Tribunal found no service provider-recipient relationship, no evidence of any knowhow or intellectual property being created and transferred, and no contractual counter-obligation arising from the grant conditions. In the absence of consideration for a service, the amount was held outside service tax under the Finance Act, 1994. The demand for tax, interest and penalty was therefore set aside, following earlier decisions treating grant-in-aid or reimbursement, without anything over and above the grant, as non-taxable.
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