In what could trigger a legal war between the revenue authorities and Cairn India the income tax appellate tribunal (ITAT) said that the latter must pay tax in India.  The Indian tax authorities had demanded tax under the indirect transfer of shares provisions. Rakesh Nangia, Managing Partner shares his views on Cairn India must pay tax in India under indirect transfer of shares provision: ITAT for Economic Times (This is a exclusive story by ET) Attached is link to the article http://economictimes.indiatimes.com/industry/energy/oil-gas/cairn-india-must-pay-tax-in-india-under-indirect-transfer-of-shares-provision-itat/articleshow/57574668.cms

In what could impact future disputes, the Mumbai Income Tax Appellate Tribunal (ITAT) has ruled that grant of call option results in capital gain but not taxable under Singapore Treaty .  Ruling in a recent case, ITAT has confirmed that under normal circumstances mere grant of call option does not result into transfer of actual asset, since no right in the shares is given by way of grant of “call option”, except a right to buy the shares at a specified price within a fixed period of time. Rakesh Nangia, Managing Partner shares his views  on Grant of call option results in capital gain but not taxable under Singapore Treaty: ITAT for Economic Times. Attached is link to the article http://economictimes.indiatimes.com/markets/stocks/news/grant-of-call-option-results-in-capital-gain-but-not-taxable-under-singapore-treaty-itat/articleshow/57519905.cms

Even as the industry trackers plan for place of effective management (PoEM) guidelines, Authority for Advance Ruling (“AAR”) in a recent case has ruled that Mauritius-based SPVs are eligible to claim tax benefits under DTAA.  The case involved Mahindra – BT Investment (“Applicant”), a company incorporated in Mauritius that transferred shares of an Indian company to a US company is not liable to get taxed in India under the beneficial provisions of India-Mauritius Treaty, the AAR ruled. Rakesh Nangia, Managing Partner shares his views on aforementioned story for Economic Times. Attached is link to the article http://economictimes.indiatimes.com/news/economy/policy/mauritius-based-spvs-eligible-to-claim-tax-benefits-under-dtaa-aar/articleshow/57537986.cms

Corporate India was awaiting Budget 2017 with concern as well as eager anticipation. The concern primarily stemmed from the demonetisation exercise over the latter part of 2016, and whether another shock from the government was in the offing. On the other hand, there was widespread anticipation that the Finance Minister would come up with some sort of sops to revitalise the economy. Rakesh Nangia, Managing Partner with inputs from Rahul Jain, Partner, Nangia & Co contributed an article on Flip side of the corporate tax relief for Hindu Business Line. Attached is link to the article http://www.thehindubusinessline.com/portfolio/macro-view/flip-side-of-the-corporate-tax-relief/article9571481.ece