Does the Issue of Shares by a Subsidiary Company to a Foreign Holding Company Amount to Taxable Income in the Hands of the Issuing Company? Vodafone India Services Pvt Ltd v Union of India

Journal of Contemporary Roman-Dutch Law, Vol. 80, p. 412-431, 2017

20 Pages Posted: 12 Dec 2017  

Stephanus P van Zyl

University of South Africa

AW Oguttu

University of South Africa - School of Law

Date Written: August 9, 2017

Abstract

This article discusses two inter-twined issues that arose in the Indian case of Vodafone India Services Pvt Ltd v Union of India, namely (a) whether the issue of shares by a subsidiary to its non-resident parent company is a taxable transaction; and (b) whether the issue of equity shares by a subsidiary to its holding company at a value lower than the fair market value falls under the transfer pricing provisions.

Keywords: Issue of Shares, Subsidiary Company, Foreign Holding Company, Taxable Transaction, Transfer Pricing Provisions

Suggested Citation

van Zyl, Stephanus P and Oguttu, AW, Does the Issue of Shares by a Subsidiary Company to a Foreign Holding Company Amount to Taxable Income in the Hands of the Issuing Company? Vodafone India Services Pvt Ltd v Union of India (August 9, 2017). Journal of Contemporary Roman-Dutch Law, Vol. 80, p. 412-431, 2017. Available at SSRN: https://ssrn.com/abstract=3085128

Stephanus P Van Zyl (Contact Author)

University of South Africa ( email )

P.O. Box 392
UNISA
Pretoria, Gauteng 0003
South Africa

AW Oguttu

University of South Africa - School of Law ( email )

South Africa

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