Delhi High Court holds that advertising, marketing and promotion (AMP) activity is not an international transaction
Global Tax Update:February 2016/India
Tax authorities had made transfer pricing adjustment alleging that excess advertising, marketing and promotion (AMP) expenditure incurred by the Indian company vis-à-vis the comparable companies had created marketing intangible for its associated enterprise (AE), S company, for which it should have received arm’s length compensation from company S. (Global Tax Update:February 2016/India)
1. Delhi High Court holds that advertising, marketing and promotion (AMP) activity is not an international transaction
The High Court held that the alleged excess AMP expenditure incurred by the Indian Company cannot be regarded as an international transaction in the absence of any agreement or arrangement between the company and its AE.
2. Electronic filing of first appeal before Commissioner of Income-tax (Appeals) (CIT (A))
As another significant step towards digitization and simplification of tax procedures in India, electronic filing of appeal before Commissioner of Income-tax (CIT (A)) is being made mandatory for taxpayers who are required to file the return of income electronically.
Deloitte Tohmatsu Tax Co., support clients’ business development in India with our up-to-date knowledge regarding Japanese and Indian tax practice and a wealth of experience in the field.