3ceb applicability
This query is : Resolved
10 October 2013
hi friends,
Is form 3CEB applicable for the share application money received from a Non resident Indian ?
(foreign share holder)....
I wanted to confirm the auditor has to file form 3CEB for the same ??
Is form 3CEB applicable for the share application money received from a Non resident Indian ?
(foreign share holder)....
I wanted to confirm the auditor has to file form 3CEB for the same ??
10 October 2013
till now subscription to shares have not been subjected to transfer pricing scrutinies as it was held in the case of Dana (AAR) and Vijai electricals, that such transaction are out of purview of transfer pricing transactions.
However, after insertion of explanation to the section 92B in 2012, the position has become uncertain.
Clause (i)(c) states:
"capital financing, including any type of long-term or short-term borrowing, lending or guarantee, purchase or sale of marketable securities or any type of advance, payments or deferred payment or receivable or any other debt arising during the course of business"
the litigation on this issue is still pending at various judicial forums including one of HSBC securities.
Therefore it is difficult to take position on this issue right now. Needless to say that department will try and cover such transactions under TP for sure.
However, after insertion of explanation to the section 92B in 2012, the position has become uncertain.
Clause (i)(c) states:
"capital financing, including any type of long-term or short-term borrowing, lending or guarantee, purchase or sale of marketable securities or any type of advance, payments or deferred payment or receivable or any other debt arising during the course of business"
the litigation on this issue is still pending at various judicial forums including one of HSBC securities.
Therefore it is difficult to take position on this issue right now. Needless to say that department will try and cover such transactions under TP for sure.
10 October 2013
Additionally, even if such transaction are to be benchmarked, it is unclear how revenue plans to make additions on account of lower issue price!!
12 October 2013
thank u very much for your reply sir....
but rite now the auditor need not report it in form 3ceb ??
but rite now the auditor need not report it in form 3ceb ??
12 October 2013
that auditor may take that view. But since the legal position isn't clear on this issue, it is possible that AO may charge you for non-disclosure.
Many other big CA firms have taken view that these transactions would be subjected to transfer pricing and therefore should be reported in 3CEB.
Many other big CA firms have taken view that these transactions would be subjected to transfer pricing and therefore should be reported in 3CEB.
15 October 2013
ok thank u very much sir...
15 October 2013
anytime sreelakshmi
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