Greetings! We are pleased to attach herewith the Tax & Regulatory Newsletter for April 16- May 31st, 2018 highlighting major recent tax and regulatory developments. Inside this issue… DIRECT TAX
  1. Marketing support services availed by BPO to expand its market outside India is not chargeable to tax in India – Kolkata ITAT
  2. Bengaluru ITAT reaffirms payment for adwords program as royalty in case of Google India
  3. ITAT: Franchise agreement doesn’t create Indian PE for dominos
  4. CBDT  issues notification for start-up  companies seeking exemption from provisions of section 56(2)(Viib)
  5. CBDT issues instructions to smoothly implement the income tax provisions concerning start-up companies
  INTERNATIONAL TAX
  1. US-China trade war is back on: White House repeats threat to tax Middle Kingdom imports
  2. Silicon Valley tsunami? Tax plans aimed at Apple, Google could start a new wave, city leaders say
  3. Canadian economic policies in hot seat after U.S. tax changes
  4. Amazon, EBay Put Spotlight on Rivals in U.K.’s Tax Fraud Fight
  5. Merkel proposes new data tax
  TRANSFER PRICING
  1. HC upheld ITAT’s invocation of Rule 10B for allowing capacity utilization adjustment to manufacturer taxpayer
  2. ITAT discards WDV based benchmarking of purchase transaction and agrees to take  customs/DCF/chartered engineer’s valuation.
  3. ITAT directed TP Provisions not applicable once transaction proved as sham
  4. ITAT holds that Revenue can determine taxpayer’s ALP, despite of AE’s Income acceptance, considering likely base erosion
  5. ITAT deletes TP-adjustment on corporate guarantee and remits ALP computation of interest on convertible debentures
  6. ITAT rejects Nil-ALP determination in respect of royalty payment and discards adoption of foreign comparable for benchmarking brand royalty
  We trust that you will find it interesting and informative.   Nangia & Co LLP – Tax and Regulatory Newsletter – April 16 – May 31st , 2018