what is transfer pricing under Income Tax law?
492414
Hi,\n\nYour question's answer is as follows:\n\nTransfer Price: Price charged between associated enterprises.\n\nMarket Price: Price charged between independent enterprises. (Also known as Arm’s Length Price)\n\nThe concept of Transfer Pricing is normally used in international transactions between associated enterprises. The rationale behind the various Transfer Pricing regulations is as follows,\n\n1.To compute reasonable, fair and equitable profits and corresponding tax\n\n2.To protect the right of a country to collect fair share of tax in respect of cross border transactions between related entities.\n\n3.The absence of regulations will lead to manipulation of the prices and ultimately shifting of profits to low tax jurisdiction. (To curtail Tax avoidance)\n\n\nThe price, which would have been agreed upon between unrelated parties engaged in the same or similar transactions under the same or similar conditions in the open market is referred to as the Arm’s Length Price. Many methods are prescribed by the Taxation Laws to determine it, amongst which the most suitable method or methods may be adopted with or without combinations.\n\nThe various methods are as follows;\n\n1.Comparable Uncontrolled Price (CUP) Method\n2.Resale Price (RSP) Method\n3.Cost Plus (CP) Method\n4.Profit Split (PS) Method\n5.Transactional Net Margin (TNM) Method\n6.Any other method as may be prescribed by CBDT.\n\nI am a tax consultant and feel free to contact me for any further queries.
855204
http://www.allindiantaxes.com/ait-news-55.php\nNo TDS on salary to non-resident employees\nAIT News Network\n\nNEW DELHI. Authority for Advance Rulings(Income-Tax) vide a recent ruling  AIT-2006-249-AAR has ruled that the salary paid by the Company registered in India to non-resident employees  for rendering services outside India shall not be taxable in India if the same has been offered for tax in the UK in pursuance of the DTAA.  \n\n\nT H E   F A C T S:\n\n \n\n\nThe applicant company registered in India under the Companies Act 1956 and itself a resident in India within the meaning of section 6 of the Act, it raised certain issues relating to the tax liability of some of its non-resident employees lent to group companies abroad.  The applicant sought advance ruling of the Authority on the following questions :\n\n \n\n\n(i) Whether in the facts and circumstances of the case and in law, salary income received in India by Mr.Manish Gupta from British Gas India Private Limited for rendering services outside India is taxable in India?\n\n \n\n\n(ii) Whether in the facts and circumstances of the case and in law, British Gas India Private Limited is required to withhold taxes on salary paid in India to Mr.Nipun Pradhan and Mr.Manish Gupta for rendering services outside India?\n\n \n\n\nThe applicant stated that it is a part of BG Group, a leading international energy company which deals in all kinds of natural gases.  India is one of BG Group’s six core geographic areas of operation.  The applicant is responsible for managing and developing upstream and downstream interest of the Group in this country.  The applicant lent some of its employees to BG Group entities outside India.  \n\n \n\n\nT H E   R U L I N G:\n\n \n\n\n(i) The salary paid by the applicant to Mr.Manish Gupta shall not be taxable in India, if the same has been offered for tax in the U.K. in pursuance of the DTAA.,\n\n \n\n\n(ii) The applicant shall not deduct tax at source from salary paid to Mr.Nipun Pradhan and Mr.Manish Gupta in India, provided it is satisfied from the details and particulars furnished under section 191(2) that taxes have been paid on such payments in the U.K.\n\n \n\n\n(  Click here for full text of Ruling AIT-2006-249-AAR )
183593
The act of exchanging car for money with profit flowing from car buyer to car seller
658299
To seriously know that you have to get 'Students guide to income tax'... for income taxes and 'service tax' by any author for service tax. VAT stands for value added tax and it is charged on the value created at each stage in the trade process. this means that if a mfg sellers to another trader rs 100 article, rs 10 is tax ( i think prevailing tax rate is 10% with 2% cess) then the seller will sell to another dealer at 150 his tax will be 15rs minus what he has already paid ie output tax minus input tax so his liability will be rs 5. there are few different tax rates for VAT you need to confirm with an accountant or CA, or just browse on google, there are so many sites devoted to VAT
427797
It's only considered federally for capital gains tax, not income tax.  If your state, doesn't have a capital gains tax, and I don't know of any that do, then you wouldn't pay any state tax on the sale.
476070
http://www.taxadmin.org/fta/rate/sales.html
942740
is that the same as an inheritance tax?
683637
PAYE - pay as you earn, on a wage/salary\nCapital Gains Tax - tax on appreciation of an asset\nStamp Duty - State government tax on the buying/selling of an asset\nPetrol Tax - a tax used for infrastructure development\nCompany Tax - Tax on a companys profit\nAirport Departure Tax - tax for airport development\nGST - indirect (but very profitable) tax on all goods and services sold as a finished product\n\nOh God - the list never ends !!!
381189
Check this out\nhttp://www.taxadmin.org/fta/rate/ind_inc.html
561152
It is income that was earned in another country, but is taxed in the US.  It is taxed at a much lower rate 5.25%.
704643
INCOME TAX REBATE ON TUITION FEES DEPENDS ON THE FOLLOWING TERMS AND CONDITIONS OF THE I.T.ACT.1961 WHICH ARE AS UNDER :\n1 IT AVAILABLE  FOR TUITION FEES PAID BY THE PARENTS FOR HIS/HER CHILDREN ( MAXI. TO 2 CHILDREN )\n2. TOTAL OF ALL OTHER SAVINGS \nLIKE NSC PURCHASE,NSC INTEREST REINVESTED,PPF,CPF,EPF,LIC PREMIUM,INCLUDING AMT. OF TUITION FEES FOR CHILD'S EDU.IS LIMITED TO RS. 1 LAC
738774
Yes it is , it is cinsidered income and therfore taxable.
490116
Tax - Technically yes, if there is a capital gain above your annual exemption for the year based on the market value of the shares at the date of transfer. However, even if there is a gain you may be able to defer it (broadly, if your daughter is UK resident and it is a gift of a business asset - basically a personal company and not shares in a plc).  \nThe definitions to qualify for the relief are pretty specific, so if the gain is likely to be over GBP8,800 (2006/07 rate) then you need to get detailed advice.  If your gains for the year (including any other chargeable disposals in the same tax year) are below that level, no tax.\n\nStamp duty - last I knew, you technically did have to pay stamp on such a transaction, but as it is a gift it would only have been 50p.  However, the stamp duty was completely revamped a couple of years ago and I do not recall how the new regime applies to gifts of shares. Hopefully someone else can help with that.\n\n\nEdit :  Sloop John, you are mixing inheritance tax exemptions and capital gains tax rules together!
151304
refer v.k.singhania's students' guide to income tax\na.y-2006-07
1176377
Better question why do we pay Income tax ,when the LAW says its illegal to do so ?
1162290
Yes and no.  Some counties will allow family to family transfers, but that generally only covers not charging Transfer Tax.  ANY deed recorded can make the property subject to tax increases.  And not only on the "purchase" price.  They can increase it to the estimated value of the property.\n\nA deed is good if notarized and delivered.  It doesn't necessarily have to be recorded BUT if you go to sell, it would be a big hassle AND the county can still go after you for the taxes after closing based on the date of the deed.  \n\nThere's not much to do to get around it.  Taxes in general ( and you'd have to check with the County) will be approximately 1.25% of the property worth at the time of sale. \n\nIf you can hold on to it (the property) and need a tax break at the end of the year, the loss could come in handy, otherwise you'll have to pay the difference  :(\n\nGood luck!
822552
Answer is need not to pay Tax\n\nGift Tax shall not be charged in respect of gifts made by a person :-\n\n\nbeing a non-resident individual to any person resident in India, of foreign currency or other foreign exchange , remitted from a country outside India during the period from 26th October, 1965 to 28th February, 1966 or such later date as the Central Government may, by notification in the Official Gazette, specify in this behalf – Section 5(1)(iia) \nbeing a person resident outside India out of moneys standing to his credit in a Non-resident(External) Account in any bank in India-Section 5(1)(iib) \nbeing a non-resident Indian to any of his relatives in India, of convertible foreign exchange remitted from a country outside India- Section 5(1)(iic) \nbeing a non-resident Indian to any of his relatives in India of property in the form of any foreign exchange asset-section 5(1)(iid) \nregarding one time gift made out of any deposit held by him under the Non-Resident(Non-repatriable) Rupee Deposit Scheme, 1992 of the Reserve Bank of India-Section 5(1)(iie) \nto any of his relatives in the form of notified NRI bonds specified under Section 10(15)(iid) of the Income tax Act- section 5(1)(iie) \n\n\nIncome which do not form part of total income  \nAn Exemptions exclusively for non-residents/ foreigners\n\n\n\nAny Interest on or premium on redemption of such bonds or securities as the Central Government may notify. \nInterest on Non-Resident (External) Accounts in any bank in India by NRIs. The exemption is valid only so long as the individual resides outside India. When he returns to India, he will no longer be entitled to such exemption. However, if he applies to the RBI to maintain or continue the NRE account, the exemption will be available so long as the permission remains valid-Section 10(4)(ii). \nInterest on Foreign Currency Non-Resident Accounts \nInterest on Foreign Currency ( Ordinary Non-Repatriable) Deposit Scheme \nInterest on Non-Resident ( Non-Repatriable ) Rupee Deposit Scheme \nDividend on units of Unit trust of India provided the units are purchased from proceeds of foreign exchange remittance or from balances held in NR(E). FCNR accounts of the investor. \nInterest on specified Saving Certificates received by Non-Resident Indian citizens or Persons of Indian Origin provided such certificates have been subscribed in convertible foreign exchange remitted from outside India through official channels. \nAny allowance or perquisite paid or allowed as such outside India by the Government to a citizen of India for rendering services outside India- Section 10(7). \nTax on remuneration to a non-resident technician- tax paid to the Central Government by the employer ( being the Government, local authority, any corporation set up under special law or any approved institution or body carrying on scientific research), on remuneration payable to a technician ( being an individual) not resident in India in any of the four financial years immediately preceding the year in which he arrived in India and whose service as such commences after 31.3.1993, shall be exempt for a minimum period of 48 months commencing from the date of his arrival in India.- Section 10(5B) \nIncome exempt in respect of foreigners: \n\n\nPassage money- Section 10(6)(I) \nRemuneration of an official of an Embassy, High Commission, Legation, Affairs, Commissioner, Consulate or Trade Representative of a Foreign State or as a member of Staff of any of these officials.- Section 10(6)(ii)(iii)(iv)(v) \nRemuneration received by employee of foreign enterprises- Section 10(6)(vi). \nSalaries to non-residents employee on a foreign ship- Section 10(6)(viii). \nIncome of individuals engaged in research work in certain cases- Section 10(6)(x) \nRemuneration received by certain foreigners, on traveling in certain establishments. – Section 10(6)(xi) \n\n\nTax paid on behalf of a foreign Company- the amount of tax paid by Government or an Indian concern on behalf o