TaxTonic #34: Related Party Transactions - Interplay of Tax, Corp Laws & Listing Regulations!
- Year of Publication: 2023
- ISBN: 0
Episode Duration:
110 Minutes
Episode Background:
'TaxTonic', a 'subscriber only' thought leadership series, is Taxsutra's endeavour to consistently deliver top notch technical content to it's readers. The labyrinth of tax rulings on convoluted transactions keeps the world of taxation unpredictable and ever-evolving. This series will feature engrossing presentations, incisive analyses and a deep-dive by the tax experts on burning issues & controversies. So, gear up for a 'tonic' to chisel your tax mind and challenge your wit.
Speakers:
- Mr. Saurabh Dhadphale (MSKB & Associates LLP (BDO International Affiliate Firm))
- Mr. Anoop Deshpande (Company Secretary and Compliance Officer - Sun Pharma)
Moderator:
Mr. Sachin Sastakar (Chartered Accountant)
What shall the episode cover?
'Relative' is a very relatable term under various laws affecting the businesses. Classification of Related Party (RP) and approval of Related Party Transactions (RPT) under Income-tax Act, Companies Act and Listing Obligations & Disclosure Requirements (LODR) is a formidable and complex task. The difference in the definition of RP and its impact on the approval or exemption of the transactions is often a challenge for the enterprise, its auditors, and regulators. Here, the focus has always been in ensuring correct identification of the transaction and assigning such transactions a fair value. The appropriate disclosure provides meaningful information to all the users. The benchmarking of the Arm’s Length Price (ALP) for the transactions is a mix of art and science. Inadequate disclosure or inappropriate transaction price often results in penal consequences for the enterprise.
In the next episode of TaxTonic, Taxsutra brings to you a discussion on the intricacies and challenges relating to classification of RPs and coverage of RPTs apart from approval & disclosure process under different laws. The episode covered the following facets:
1. Related Party classification – Domestic Tax Vs Transfer Pricing.
2. Related Party classification – Companies Act Vs LODR.
3. Procedural & Pricing Challenges for RPT.
4. Interplay of RPT between Income-tax Act, Companies Act & LODR.
5. Penal provisions relating to RPT.
Taxsutra is considered the most credible source of tax news in the tax fraternity. What started as a fledgling start-up has now become a leading brand in the tax world not only in India, but across the globe. Taxsutra's diverse customer set includes Fortune 500 Companies, large Indian Business Groups, Global Conglomerates, Tax Judges, IRS Officers, CBDT, Tax Lawyers & thousands of tax practitioners.
Taxsutra suite of portals :
1. Real time tax news & analysis for Corporate Tax (www.taxsutra.com/dt)
2. Transfer Pricing Portal (www.taxsutra.com/tp)
3. GST and Central Indirect Taxes Portals (www.taxsutra.com/gst - www.idt.taxsutra.com)
4. "Taxsutra Database" - Powerful Online Direct Tax Reference and Search Tool (www.database.taxsutra.com)
5. LawStreetIndia (LSI) (www.lawstreetindia.com) contains sub-modules on Company law, Securities law (SEBI/SAT), FEMA, IP laws & Competition Law
6. Taxsutra Accounting Standards portal (Ind-AS) (www.greentick.taxsutra.com)
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- Year of Publication: 2023
- ISBN: 0
Episode Duration:
110 Minutes
Episode Background:
'TaxTonic', a 'subscriber only' thought leadership series, is Taxsutra's endeavour to consistently deliver top notch technical content to it's readers. The labyrinth of tax rulings on convoluted transactions keeps the world of taxation unpredictable and ever-evolving. This series will feature engrossing presentations, incisive analyses and a deep-dive by the tax experts on burning issues & controversies. So, gear up for a 'tonic' to chisel your tax mind and challenge your wit.
Speakers:
- Mr. Saurabh Dhadphale (MSKB & Associates LLP (BDO International Affiliate Firm))
- Mr. Anoop Deshpande (Company Secretary and Compliance Officer - Sun Pharma)
Moderator:
Mr. Sachin Sastakar (Chartered Accountant)
What shall the episode cover?
'Relative' is a very relatable term under various laws affecting the businesses. Classification of Related Party (RP) and approval of Related Party Transactions (RPT) under Income-tax Act, Companies Act and Listing Obligations & Disclosure Requirements (LODR) is a formidable and complex task. The difference in the definition of RP and its impact on the approval or exemption of the transactions is often a challenge for the enterprise, its auditors, and regulators. Here, the focus has always been in ensuring correct identification of the transaction and assigning such transactions a fair value. The appropriate disclosure provides meaningful information to all the users. The benchmarking of the Arm’s Length Price (ALP) for the transactions is a mix of art and science. Inadequate disclosure or inappropriate transaction price often results in penal consequences for the enterprise.
In the next episode of TaxTonic, Taxsutra brings to you a discussion on the intricacies and challenges relating to classification of RPs and coverage of RPTs apart from approval & disclosure process under different laws. The episode covered the following facets:
1. Related Party classification – Domestic Tax Vs Transfer Pricing.
2. Related Party classification – Companies Act Vs LODR.
3. Procedural & Pricing Challenges for RPT.
4. Interplay of RPT between Income-tax Act, Companies Act & LODR.
5. Penal provisions relating to RPT.
Taxsutra is considered the most credible source of tax news in the tax fraternity. What started as a fledgling start-up has now become a leading brand in the tax world not only in India, but across the globe. Taxsutra's diverse customer set includes Fortune 500 Companies, large Indian Business Groups, Global Conglomerates, Tax Judges, IRS Officers, CBDT, Tax Lawyers & thousands of tax practitioners.
Taxsutra suite of portals :
1. Real time tax news & analysis for Corporate Tax (www.taxsutra.com/dt)
2. Transfer Pricing Portal (www.taxsutra.com/tp)
3. GST and Central Indirect Taxes Portals (www.taxsutra.com/gst - www.idt.taxsutra.com)
4. "Taxsutra Database" - Powerful Online Direct Tax Reference and Search Tool (www.database.taxsutra.com)
5. LawStreetIndia (LSI) (www.lawstreetindia.com) contains sub-modules on Company law, Securities law (SEBI/SAT), FEMA, IP laws & Competition Law
6. Taxsutra Accounting Standards portal (Ind-AS) (www.greentick.taxsutra.com)
