SVB Investigation must be scrapped

Cant agree with the first three points.

1) TP reports are analysed on the basis of the fact that whether the prices are being inflated to reduce profits. On the other hand, Customs valuation would have to be analysed on whether the values are being reduced. Hence, ideal TP values and ideal Customs values form the floor and ceiling within which the prices should fit.

2) Secondly, Indian income tax rates for smaller companies may be much lower than the higher tax applicable on the supplier in the foreign jurisdiction, due to obvious difference in sizes. Hence, this might make sense to undervalue and depress profits in the foreign jurisdiction and increase profits in India. Of course it would attract the ire of the TP authorities in home country. But this is a process which the Indian Customs would not be privy to.

3) I dont agree with Customs having the power to stop shipments pending SVB process. If any officer is doing so, this is beyond the powers provided under 4/2016. HC can definitely be approached. At times, officers comply and provide the option of PD bond etc. as soon as a legal notice is submitted. After all, the idea of PD valuation is recognized by WTO valuation norms as well.

associates associates 12/11/2018