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The Directorate General of GST<\/a> Intelligence is probing Tata Sons' $1.2-billion payment to NTT Docomo in 2017 following the settlement reached in a three-year dispute over the Japanese company's exit from Tata Teleservices<\/a>.
Both sides agreed to implement an arbitration award that required the Tata Group to pay Docomo for its 26.5% stake in the joint venture and allow it to exit. The GST authorities are investigating the payment made on account of this settlement, the official said.
\"The investigation is going on,\" said another official.
Tata Sons declined to comment on the matter. A group official said Tata Sons has complied with all applicable laws for this payment.
The authorities are said to have taken a view that both parties agreed to do something in exchange for money, as per provisions in their contract.
'Not Applicable in the Case' 17
The tax authorities have relied on para 5, 2 (e) of Schedule II of the Central Goods and Services Tax Act, 2017, which states that \"agreeing to an obligation to refrain from an act, or to tolerate an act or a situation, or to do an act\" shall be treated as supply of services. A GST rate of 18% would apply in such a case.
Tax experts said this provision may not be applicable in the Tata-Docomo case because their settlement was pursuant to an arbitration award by a court.
\"It can be argued that there should be a contract where parties undertake to do something in exchange for money... if money is paid pursuant to an arbitration award, it should ideally not get covered under this clause,\" said Pratik Jain, national leader, indirect taxes, at PwC.
The Dispute
Docomo had invested $2.2 billion in Tata Teleservices in November 2009.
The partners had agreed that upon Docomo exiting the venture within five years, Tata Sons would buy back the shares at a fair value or 50% of the subscription price, whichever was higher, if it was unable to find a buyer for the stake.
Docomo invoked this clause after Tata Teleservices failed to meet stipulated performance indicators by March 31, 2014.
The Tata Group sought the Reserve Bank of India's approval for the transaction because the sale of shares by overseas investors at a pre-determined price, as laid down in the Tata-Docomo agreement, violated foreign exchange norms.
The RBI consulted the government and said no special exemption could be granted.
Docomo then secured an arbitration award in the UK in June 2016 and approached the Delhi High Court<\/a> to enforce the award. The court dismissed the RBI's intervention in the dispute in April 2017 and allowed Tata Sons to pay the amount to Docomo.
Docomo said in November 2017 it had received the payment from Tata Sons. GST was introduced in India on July 1, 2017.
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读到
总局销售税智能探测Tata Sons NTT Docomo的1.2美元支付2017年之后在一项为期三年的纠纷达成和解,日本公司的退出塔塔电信业务。
双方同意执行仲裁裁决,要求塔塔集团支付Docomo的合资企业26.5%的股份,并允许它退出。消费税当局正在调查这个结算付款的,这位官员说。
“调查,”另一位官员说。
Tata Sons拒绝就此事置评。一群官员说,塔塔的儿子遵守所有适用法律为这个付款。
当局已采取一个视图表示,双方同意做些什么,以换取资金,按照合同的规定。
不适用在17
税务机关有依赖para 5 2 (e)的第二中央商品及服务税的法案,2017年,即“同意避免行为义务,或容忍行为或情况,或做一个法案”应被视为供应服务。销售税18%将应用在这种情况下。
税务专家表示,这一规定可能不适用Tata-Docomo情况下因为他们的结算是按照法院的仲裁裁决。
”可以说,应该有一个合同,当事人承担做某事,以换取钱……如果钱是依照一个仲裁裁决,它应该不会在这一条款,“Pratik Jain说,国家领导人,间接税收,普华永道。
这一争端
Docomo已经投资了22亿美元在2009年11月塔塔电信业务。
合伙人同意,Docomo退出该合资企业五年内,Tata Sons回购股票公允价值或50%的订阅价格,哪个更高,如果无法找到买家。
Docomo调用这一条款后,塔塔电信业务未能达到规定的性能指标在3月31日,2014年。
塔塔集团寻求印度储备银行的审批事务,因为以预先确定的价格出售股份的海外投资者,作为制定Tata-Docomo协议,违反了外汇规范。
印度储备银行咨询了政府和说没有特殊豁免可以被授予。
Docomo然后获得一个仲裁裁决在英国在2016年6月,靠近德里高等法院执行这个奖项。法院驳回了RBI的介入争端在2017年4月,允许Tata Sons Docomo支付金额。
Docomo 2017年11月表示,已接到Tata Sons付款。2017年7月1日,在印度引入销售税。
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