Dear All Taking the next step in the ‘Significant Economic Presence’ (SEP) concept, the Central Board of Direct Taxes (CBDT) has invited suggestions on the quantum of ‘revenue’ and ‘user’ thresholds that need to be prescribed for determining the SEP of a non-resident in India. Rakesh Nangia, Managing Partner shares his views on aforementioned story for following publications:

• Hindu Business Line(Standalone story)
• PTI

(This news has been picked by Bloombergquint, Business Standard and moneycontrol.co Significant Economic Presence: CBDT invites suggestions on ‘revenue/user’ cap for NRIs – Rakesh Nangia

The Income Tax Act is more than 5 decades old and has gone through a plethora of amendments since. Realising this the Prime Minister Narendra Modi led NDA Government, has been constantly trying to trim down the obscurities. Rakesh Nangia, Managing Partner and Neha Malhotra, Executive Director contributed article on Tax reforms in the absence of DTC discussing the tax changes brought by NDA govt. in last four years for Hindu Business Line.

The Central Board of Direct Taxes (CBDT) has now issued final notification on 22 June 2018 dealing with different aspects of the computation of income of such foreign companies constituting Indian resident owing to its POEM, such as depreciation, carry forward and setoff of losses, foreign tax credit, difference in the tax year than that adopted by the foreign company.   Rakesh Nangia, Managing Partner and Neha Malhotra, Executive Director with inputs from Radhika Arora contributed an article on THE TAXING POEM  for Financial Chronicle.    

Last week, CBDT clarified that foreign companies that have their place of effective management (POEM) in India will be taxed at 40%, plus applicable surcharge & cess and on other side, CBDT releases guidance on appropriate use of CbC Reports.   Our experts contributed articles on following topics for Taxsutra:

• Is the PoEM rhyming well for foreign companies becoming resident?- Rakesh Nangia, Managing Partner and Chirag Nangia, Director, Nangia & Co LLP
• CBDT releases guidance on appropriate use of CbC Reports- Rakesh Nangia, Managing Partner and Nitin Narang, Partner- Transfer pricing with inputs from Tarini Nijhara, Director and Priyanka Mittal, Nangia & Co LLP