All posts by nangia

Tax & Regulatory Newsletter – December, 2018- February , 2019 Edition

We are pleased to attach herewith the Tax & Regulatory Newsletter – December, 2018 –  February , 2019 Edition highlighting major recent tax and regulatory developments. Inside this issue…  DIRECT TAX                                                                                                                                                      
  1. Mumbai ITAT held that Service-tax / R&D cess borne by Indian service recipient are not taxable as Royalty
  2. Ahmedabad ITAT held that payment for testing services not chargeable to tax as FTS
  3. Delhi ITAT allowed the tax sparing credit in respect of dividend income received by the assessee from its Thailand subsidiary
INTERNATIONAL TAX
  1. Addressing the Tax Challenges of the Digitalisation of the Economy – OECD Policy Note
  2. US Treasury Leadership Gives Direction to the OECD Digital Tax Project in January 29 Note
  3. S.Korea’s tax agency to intensify probe into companies’ tax evasion
  4. Irish corporation tax faces new squeeze as OECD kicks off digital reform probe
  5. Investors Facing Tax They May Not Owe Must Move Fast With IRS In (1)
  6. Romania Imposes 10% Tax on Cryptocurrency Earnings
TRANSFER PRICING
  1. Money routed through AE for advance payment to third party is not a case of capital financing and accordingly outside ambit of ‘international transaction’
  2. ITAT characterize Microsoft India as Contract R&D service provider instead of routine software developer by placing reliance on detailed functional and risk analysis
  3. ITAT deletes addition on AMP expenditure in absence of any agreement or arrangement with AE
  4. ITAT held that Hedging-loss on derivative contract entered with third parties to cover forex fluctuation for the purpose of loan advanced to its AE is not an international transaction
  GST
  1. ‘Advance ruling- No IGST on the warehoused goods supplied to Domestic Tariff Area from Free Trade Warehousing Zone’
  We trust that you will find it interesting and informative. Nangia & Co LLP_Newsletter_ December, 2018- February , 2019 Edition If you wish to unsubscribe our news alerts, send us a blank mail at [email protected]  with a subject line “unsubscribe”, we shall remove your email id from our mailing list.  

India Physical Presence Tax Ruling Is Boon to Foreign Companies – Nitin Narang

Multinationals looking to stay out of India’s widening tax net may have a new tool: A recent ruling that quashed authorities’ attempts to tax income from a company based outside India. India Physical Presence Tax Ruling Is Boon to Foreign Companies Nitin Narang, Partner- Transfer Pricing in an conversation with Bloomberg BNA- US sharing his views on recent Mumbai’s Income tax tribunal judgment on Fox International Channel.

Tax & Regulatory Newsletter – March , 2019 Edition

We are pleased to attach herewith the Tax & Regulatory Newsletter – March , 2019 Edition highlighting major recent tax and regulatory developments. Inside this issue…   DIRECT TAX                                                                                                                                                      
  1. Supreme Court holds the year of completion of substantial expansion within a new unit as a fresh “initial assessment year” for claiming 100% deduction of profits
  2. Mumbai ITAT held that the payments received by the foreign company for developing and transferring technical plan does not qualify as FTS in the absence of “make available” condition
  3. Mumbai ITAT held that in the absence of fulfilment of make available condition as mentioned in the India-UK DTAA, no tax is required to be deducted by assessee on payments made to French company
  INTERNATIONAL TAX
  1. France sees global tax deal on digital giants in 2019: Minister
  2. Governments use receipt lotteries to boost tax compliance
  3. EU court issues landmark decision on Member State power to deny tax benefits
  4. Turkey issues guidance on controversial digital tax
  5. Accenture paid £150m to settle Lux Leaks tax dispute
  6. France tries to set trend with internet tax bill
  TRANSFER PRICING
  1. SC dismisses McKinsey India’s SLP; HC upheld its research & information service characterization as KPO
  2. ITAT rules BLT’s inability to provide valid ground for AMP adjustment subsequent to high court’s ruling in prior period; Rejects BEPS actions 8-10 applicability
  3. The HC Upholds ITAT-order treatment of additional interest on AE’s margin-money
We trust that you will find it interesting and informative. If you wish to unsubscribe our news alerts, send us a blank mail at news@nangia-news.com with a subject line “unsubscribe”, we shall remove your email id from our mailing list.   Nangia & Co LLP_Newsletter_ March , 2019 Edition If you wish to unsubscribe our news alerts, send us a blank mail at [email protected]  with a subject line “unsubscribe”, we shall remove your email id from our mailing list.  

Shell companies: Govt formulates new rules to weed out firms – Sandeep Jhunjhunwala

The Ministry of Corporate Affairs (MCA) has made it obligatory for companies incorporated before December 2017 to file a new form to disclose their particulars, including a fully functional registered office. Analysts said the new rule (25A) will not only strengthen corporate governance, but will also help weed out shell companies. Sandeep Jhunjhunwala, Director shares his views on aforementioned story for Financial Express. Govt formulates new rules to weed out firms