Tag: Service cost

Italy vs Alfa Gomma SUD s.r.l. July 2014, Supreme Court 16480

Italy vs Alfa Gomma SUD s.r.l. July 2014, Supreme Court 16480

This case was about tax deductibility of service costs charged to an Italien company by an European Cost Centre within the group. The Supreme Court stated that it is necessary to give evidence that the Italian company have actually received a service and that this service is objectively definable and documented. The Court ruled in favor of the tax administration. Click here for translation Italy Supreme-Court-18-July-2014-No.-16480.pdf ... Continue to full case
India vs. Gemplus India Pvt. Ltd. March 2009, ITA case no. 352

India vs. Gemplus India Pvt. Ltd. March 2009, ITA case no. 352

Gemplus India Pvt. Ltd. is a part of the Gemplus group, engaged in providing smart card solutions for the telecommunications industry, financial services industry and other e-businesses. The company entered into a intra group management services agreement for receipt of services in marketing and sales support, customer service support, finance, accounting and administration support and legal support. The tax administration found there was no clear proof that such services had actually been rendered. There was no specific benefit derived by the Indian company. Gemplus India Pvt. Ltd. had not established the benefit of these services and had already incurred expenses towards professional and consultancy services and employed qualified personnel in India for rendering similar services. The Appellate Tribunal decided the case in favour of Revenue. To satisfy the arm’s-length standard, a charge for intra group services or intangibles must at least meet the following conditions: • The need for intra group services or intangibles is established. • The intra group ... Continue to full case