SpicyIP Tidbit:Fosters Ruling and Transfer pricing

Readers may our recall our earlier post on the Fosters Ruling by the AAR

The Business Standard carried an article on this ruling recently throwing further light on the ‘Source Rule’ that determines fiscal jurisdiction based on territorial nexus and first of its kind dealing with an offshore transfer of intangible

The decision turned upon a fundamental question – where was the intangible, a ‘capital asset’, situated .The deeming fiction under the domestic law taxes non-residents on transfer of ‘capital asset’ located in India. Since limited guidance is available on such deeming provision, several disputes have arisen and Vodafone is a case in point.”

This article examines nuances such as Transfer Pricing Issues, Double Taxation and tricky nuggets of Source Based Taxation.

For those of you who wrote in seeking more information on this ruling, this article raises some pertinent questions. Read on here

Tax Experts, do send in your comments and lets get a Tax-IPR debate going!