The Income Tax Department has proposed to amend rules related to obtaining certificates by assessees for deduction of income tax at lower rates or no deduction. The Department has invited comments from various stakeholders by September 4. The amended rules are likely to be notified by mid-September.
In recent years, multiple tax compliances, tax strategies, evolving business model, digital economies, etc. have garnered significant attention. Amendments to tax treaties and introduction of new tax schemes came thick and fast by individual countries to prevent their tax base erosion, and all this, led key stakeholders to take a concerted effort to overhaul global tax landscape. In India, Country by Country Reporting and Master File took centre stage, along with GST.
“It is important that companies look at control frameworks in connection to data sources, formats and content that is delivered digitally to various government agencies world over” says Nitin Narang, Partner – Tax & Transfer Pricing in an exclusive interview with ET CFO discussing the challenges and the way ahead for international groups when filing CbC reports.
The Tax authorities all over the world are working to protect their tax base and looking to amend their tax treaties to ring fence the issue of base erosion and profit shifting (BEPS) based on three core principles: greater coherence, rationalisation of substance and increased transparency. Consequently, Transfer Pricing (TP), which has been in the forefront since its introduction in 2001, has undergone a revolutionary change since 2015, resulting in more compliance for the businesses. This is coupled with stringent scrutiny by the Tax Authorities of business structures/ models and the way inter-company transactions are being priced to identify incidences of tax avoidance.
We, at Nangia & Co LLP, wish to be your value added partners. Accordingly, we have endeavoured to provide insights into recent TP news, discuss topical events and provide key takeaways arising from various happenings in the arena of TP by way of this monthly series. This tabloid is envisaged to keep our readers informed of the important changes and help understand how these changes would impact doing business in India.
We are pleased to attach herewith the first issue of “Communique- Your Transfer Pricing Tabloid”.
Hope you will find it useful and informative.
