Private Sector

Tata Chemicals gets ITAT relief in logo fee case

Tata Chemicals gets ITAT relief in logo fee case

Tata Chemicals gets ITAT relief in logo fee case

MUMBAI: Tata Chemicals gets ITAT relief in logo fee case – Rs 3.7 crore paid by Tata Chemicals for utilizing the ‘Tata’ logo as a business allowance, has been permitted by The Mumbai seat of Income Tax Appellate Tribunal (ITAT).

Under the ‘Tata’ brand value and business advancement arrangement’, which traces all the way back to January 1999, this organization, similar to others in the Tata crease, need to pay a specific level of their yearly benefits to Tata Sons, as a ‘premium’ for utilizing the TATA logo. As needs be, in FY03 (the year in debate), Tata Chemicals paid 0.25% of its benefits (Rs 3.7 crore) to Tata Sons.

Over the span of appraisal, the personal duty official denied an allowance for this installment, because Tata Chemicals has its own grounded logo, which additionally unveils the Tata linkage, and that the installment for the premium is under a compulsory course from the holding organization and is for a non-business thought.

Further, the I-T official held that the understanding is only a course of action to impart benefits to the holding organization at a foreordained rate and any installment in persistence to the said arrangement ought not to be permitted with the matter of Tata Chemicals.

The official (claims) maintained this game-plan. A forbiddance of consumption brings about upgrading the available benefits of the organization. This prompted Tata Chemicals to document an allure with the ITAT as Tata Chemicals submitted to the ITAT that the arrangement was gone into by organizations to pool assets and put forth a co-usable attempt to advance a brought together Tata brand. Aggregately, the Tata Brand would coordinate the brand value of notable worldwide names. In 2020, TATA was valued at $20 billion, getting the No.1 position as India’s most important brand.

The ITAT seat, involving Mahavir Singh, VP and N K Pradhan, bookkeeper part, in its request gave on Friday, noticed that in the prior years, rulings for the gathering organization had been passed by the council to a genuinely settled issue. This request avows and concurs with the finish of prior ITAT orders,” said a legal counselor, who prompts the Tatas. In FY13, Tata Sons had covered a gathering organization’s commitment to the brand value and business advancement store at Rs 75 crore.

Read more Private Sector News on India Frontline.