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TAX & REGULATORY NEWSLETTER

Nangia & Co LLP – Tax & Regulatory Newsletter – May 01- May 15, 2017

We are pleased to attach herewith the Tax & Regulatory Newsletter for May 01- May 15, 2017  highlighting major recent tax and regulatory developments in India. DIRECT TAX                                                                                                                                                      
  1. India gives its nod for signing Multilateral Instrument to implement OECD lead BEPS
  2. Payment for collaborative maintenance/ training services is taxable as “fees for technical services” as against “non-taxable” or “without prejudice taxable u/s 44BB” claim of Assessee
  3. Payment made under membership agreement by the member entity not taxable on the principle of mutuality, thus no obligation to withhold tax
  4. The Apex Court of India upholds disallowance of expenditure on default in withholding tax, irrespective of whether it is paid or payable
 INTERNATIONAL TAX
  1. Australian Budget 2017 – Highlights
  2. Sweden’s tax plan is the opposite of Donald Trump’s – and it is proving hugely successful
  3. OECD: Launches facility to disclose CRS avoidance schemes with 1800 bilateral exchange relationships
 TRANSFER PRICING
  1. Brand value accretion through incurrence of AMP expenditure of the taxpayer renders an incidental benefit to its brand owning associated enterprise which does not fall under the definition of ‘International Transaction’ and thus, not to be benchmarked
  2. Distinguishing the High Court’s findings in landmark case of Vodafone India, the Tribunal confirmed the levy of penalty for non-filing of Form 3CEB in relation to the taxpayer’s share investment transaction
  3. The primary onus of establishing the fact that its international transactions have a close nexus each other and thus, have been bundled for benchmarking purpose, rest with the taxpayer
INDIRECT TAX
  1. State GST act passed by 12 assemblies
Hope you will find it interesting and informative. Nangia News Flash
TAX & REGULATORY NEWSLETTER

Tax & Regulatory Newsletter – April 16 – April 30 , 2017

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                                                                                                                                                      
  1. Royalty is taxable on payment basis under the DTAA, in the case of non-residents
  2. Accumulated losses of amalgamating company to be set off after reducing interest waiver benefit
  3. Interest payment to Mauritian entities not taxable in absence of PE
  4. Income from letting of SEZ along with facilities is ‘business income’ and not ‘rental income’
 INTERNATIONAL TAX
  1. United Arab Emirates become the 109th jurisdiction to join the most powerful multilateral treaty against offshore tax evasion and avoidance
  2. France and UK launch major tax fraud probe
  3. Trump proposes 15 percent corporate tax rate, territorial tax system
 TRANSFER PRICING
  1. 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
  2. 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
INDIRECT TAX
  1. GST council comes up with new draft rules, focus shifts to rates of various goods and services
Hope you will find it interesting and informative. Nangia News Crunch
Articles In Newspapers & Journals

If the financial year changes/ Draft valuation rules- Rakesh Nangia

Section 2 (41) of Companies Act, 2013, which came into force on April 2014, made it mandatory for companies to follow an April-March financial year. Companies following other periods were given two years to migrate. Those who wanted to use periods other than the official financial year needed approval from the National Company Law Tribunal.  In 2013, there were some 226 listed companies whose financial year did not end in March, while 74 followed the calendar year; 58 had their year ending in September, while 89 had a July-June financial year. 1 – Rakesh Nangia, Managing Partner, Nangia & Co LLP shares his views on aforementioned story for Business Standard. 2 – Shailesh Kumar, Director- Direct Taxation, Nangia & Co LLP shares his views on Draft rules released to prevent tax evasion via unquoted shares for Economic Times Financial Year Changes   Tax Evasion