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India Tribunal Allows Refund in Landmark Transfer Pricing Case

May 18, 2021, 4:41 PM

In a landmark ruling, the Mumbai bench of the Income Tax Appellate Tribunal has granted relief to a foreign entity on the tax paid by it. If the foreign company has returned the excess royalty paid by its Indian entity, its tax outgo will also stand reduced, the ITAT has held.

Welcoming the ruling, which was handed down April 30, Maulik Doshi, executive director at consulting firm Nexdigm said currently there is no provision in the tax law to claim such a refund. Hence, the ruling would provide a good precedent for non-resident taxpayers on similar issues emanating from the ...

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