India - Transfer Pricing Provisions Not Applicable to Allotment of Shares
- P. Raj Kumar Jhabakh
- International Transfer Pricing Journal, 2015 (Volume 22), No 1
- 12 January 2015
The author discusses the recent decision of the Bombay High Court in the Vodafone India Services Pvt. Ltd case, in which the Court held that the issuance of shares at a premium by a subsidiary to its non-resident parent company does not give rise to any income and, as a consequence, the provisions of chapter X relating to avoidance of tax (transfer pricing) of the Indian Income Tax Act 1961 is not applicable.