We are pleased to attach herewith the Tax & Regulatory Newsletter for April 16 – April 30 , 2017 highlighting major recent tax and regulatory developments in India.
DIRECT TAX
- Royalty is taxable on payment basis under the DTAA, in the case of non-residents
- Accumulated losses of amalgamating company to be set off after reducing interest waiver benefit
- Interest payment to Mauritian entities not taxable in absence of PE
- Income from letting of SEZ along with facilities is ‘business income’ and not ‘rental income’
- United Arab Emirates become the 109th jurisdiction to join the most powerful multilateral treaty against offshore tax evasion and avoidance
- France and UK launch major tax fraud probe
- Trump proposes 15 percent corporate tax rate, territorial tax system
- It is not the prerogative of Revenue to direct the taxpayer to conduct its business in a particular manner that will lead to higher revenue to the coffers of the tax gatherers
- In the absence of any substantive provision in Indian Transfer Pricing legislation, the Assessing Officer is not empowered to pre-suppose any hypothetical transaction between the taxpayer and its associated enterprise for taxing purposes
- GST council comes up with new draft rules, focus shifts to rates of various goods and services