The Anglo-Dutch oil company Shell won a multi-million dollar tax dispute against the Indian tax authorities when the Bombay High Court gave a verdict in its favor. The case was related to transfer pricing – the value at which companies trade products, services or assets between units across borders, a regular part of doing business for a multinational. Shell had challenged the tax office which alleged in February last year
AFGHANISTAN | Kabul
that the company's Indian unit underpriced shares transferred to the parent company by about $2.5 billion demanding tax on the interest the company would have earned.
The court favored Shell on the grounds that issuance of shares by an Indian company to its foreign parent was not taxable under the transfer pricing provisions. Earlier, an Indian court ruled in favor of the Vodafone Group, the biggest foreign corporate