SC relief for Foster’s on SABMiller deal

NEW DELHI: The Supreme Court has stayed an Authority for Advance Tax Ruling (AAR) order that held beer major Foster’s Australia Ltd liable to pay income tax on the sale of its brand and trademarks in India to UK-based liquor company SABMiller.

The SC asked Foster’s Australia to move the high court concerned and also stayed tax assessment of the transaction till the company does so.

In May last year, AAR had said that the income Foster’s Australia earned from the transfer of its rights, title and interest in trademarks and Foster’s brand intellectual property is taxable in India.

In 2006, SABMiller, which owns brands such as Royal Challenge, Haywards 5000, Castle and the newly-launched Haywards Black, acquired Foster’s India, a subsidiary of Foster’s Australia, for $120 million. SABMiller is said to be the second largest player in the domestic beer segment. It recently hived off its Asia business into a separate division.
b_rakesh@dnaindia.net