Sumit Naib, Assosiate Director shares his views on Lessons from the Nathella episode for Hindu Business Line.

The digital economy was going untaxed, which led to decades of brainstorming at OECD (Organisation for Economic Cooperation and Development), resulting in ‘Action Plan 1-Addressing the tax challenges of Digital Economy’ under the Base Erosion Profit Shifting (BEPS) Project.  Being an observer of the BEPS project, a new terminology was toyed by the Indian tax administrator to tax ‘Googles’ and ‘Facebooks’ of the world — Google Tax. A new kind of equalisation levy at six per cent was introduced to tax digital advertisement platforms effective June 2016. Rakesh Nangia, Managing Partner with inputs from Neha Malhotra contributed an article on Google tax didn’t address tax challenges of digital economy for Business Standard.  

Google India will be contesting the recent decision of the Bengaluru bench of the Income Tax Appellate Tribunal (ITAT), which held payments aggregating to Rs 1,457 crore made by it to Google Ireland to be taxable as ‘royalty’. ITAT‘s order covers the remittances made during the financial years 2006-07 up to 2011-12, under the ‘Adwords’ distribution agreement for resale of advertisement space. Neha Malhotra, Executive Director shares her views on aforementioned for Bloomberg- BNA.

India has seen a good deal of business disruption since GST was introduced in July with little time for companies to prepare. TP professionals are now warning that disharmony in the open market pricing between GST and TP laws could add yet another layer of complexity to the new regime.

1. Nitin Narang, Executive Director- Transfer Pricing shares his views on aforemntioned story for International Tax review magazine- Singapore.

 

2. Nitin Narang, Executive Director- Transfer Pricing shares his views on India’s Profit Shifting Rules May Spur Litigation: Practitioners  for Bloomberg-BNA.