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

The Central Board of Direct Taxes (CBDT), India has proactively issued guidelines vide Instruction No. 2/2018 dated June 27, 2018 to clarify for various stakeholders on the purpose of filing the Country-by-Country Reports, appropriate use of the information by the Tax Authorities, ways to ensure confidentiality of sensitive company information received therein and ways to monitor, control and review the process to prevent any abuse to the detriment of the international group of the same. Rakesh Nangia, Managing Partner shares his views on aforementioned development for Taxsutra. (with inputs from Nitin Narang, Partner- Transfer Pricing) CBDT Instructions

Dear All The Central Board of Direct Taxes (CBDT) proposes to provide a relief to MNCs on the interest payable by them on the untaxed profits stashed abroad, requiring to be repatriated back to India under the transfer pricing regime. It now plans to ease a rule on the manner of computation of interest in the case of MNCs opting for a Mutual Agreement Procedure (MAP)/Advance Pricing Agreement (APA) process to settle transfer pricing disputes. 1. Rakesh Nangia, Managing Partner shares his views on aforementioned story for Hindu Business Line.

A dissenting judgment in the majority order by a tax tribunal over the issue of permanent establishment (PE) has fuelled fear of more litigation. The Income Tax Appellate Tribunal (ITAT) ruled in favor of Finland-based Nokia Network OY, engaged in manufacturing of advance mobile and fixed telephony equipment and systems.   Rakesh Nangia, Managing Partner shares his views on Dissent in Nokia tax verdict may mean more litigation for Business Standard.