PRAXAIR PACIFIC LIMITED Vs. DIRECTOR OF INCOME TAX

JUDGEMENT

(1.) THIS application for advance ruling has been filed by a non -resident company under Section 245Q(1) of the Income -tax Act, 1961(hereinafter referred as Act). The following facts are stated in the application.

(2.) THE applicant, Praxair Pacific Limited, is a company incorporated in Mauritius and is a tax resident of Mauritius. The applicant has a wholly owned subsidiary company in India, Praxair India Pvt. Ltd (Praxair India). The applicant is holding 237,286,500 equity shares representing 99.99% of the capital of Praxair India. The nominee of the applicant holds remaining 3 shares representing 0.01% of share capital. The applicant also holds 74% of the equity shares capital in Jindal Praxair Oxygen Company Private Limited (Jindal Praxair) and the balance 26% is held by JSW Steel Limited. The applicant is proposing to transfer 74% of the equity share capital in Jindal Praxair to its wholly owned subsidiary company, Praxair India. The consideration for the proposed transfer is stated to be determined on the basis of cost, unless a higher consideration is required under the pricing guidelines prescribed by the Reserve Bank of India as applicable for the transfer of shares.

(3.) THE applicant has framed following nine questions for seeking advance ruling from this Authority: