India

Transfer pricing news, BEPS news, and international tax news in India

Indian tax authority sets new CbC reporting deadline for US subsidiaries

Posted on by in Americas, Asia Pacific, BEPS, India, Latest, Multinational Tax, OECD, Tax, Tax Avoidance, Transfer Pricing, US and tagged .
Indian tax authority sets new CbC reporting deadline for US subsidiaries

By Maulik Doshi (Partner, Head of Transfer Pricing & International Tax, SKP Group) and Kamlesh Kaltari (Senior Manager, SKP Group)

In India, the 2016 Finance Act introduced a three-tiered transfer pricing documentation regime with a view to aligning the Indian transfer pricing documentation rules with Action 13 of the OECD’s base erosion and profit shifting (BEPS) project.

Accordingly, Indian subsidiaries of multinational groups were required to comply with new “master” and “local” files requirements and a new country-by-country reporting requirement from the 2016-17 financial year.Continue Reading

Indian tax authority undergoing ratification process for BEPS MLI

Posted on by in Asia Pacific, Australia, Austria, BEPS, Europe, France, India, Japan, Jersey, Latest, Multinational Tax, New Zealand, OECD, Sweden, Tax, Tax Avoidance, UK and tagged .
Indian tax authority undergoing ratification process for BEPS MLI

Important process of ratifying the BEPS MLI is on. In 2019-2020, the provisions will come into effect, says Akhilesh Ranjan.

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India, Hong Kong tax treaty to take effect from April 2019

Posted on by in Asia Pacific, BEPS, Hong Kong, India, Latest, Tax, Transfer Pricing and tagged , .
India, Hong Kong tax treaty to take effect from April 2019

The tax treaty provides for a low withholding tax rate of five percent for dividend payments. Interest, royalties, and fees are subject to a low withholding tax rate of ten percent.Continue Reading

India, China Sign Tax Treaty Protocol to Implement BEPS Minimum Standards

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India, China Sign Tax Treaty Protocol to Implement BEPS Minimum Standards

India has signed a Protocol to amend its tax treaty with China.

The Protocol incorporates changes required to implement tax treaty-related minimum standards agreed under the base erosion and profit shifting (BEPS) project.
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Indian Tax Tribunal Allows Claim of Expenses by Mauritian PE

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Indian Tax Tribunal Allows Claim of Expenses by Mauritian PE

By Ritu Shaktawat (Partner, Khaitan & Co, India) and Shabnam Shaikh (Principal Associate, Khaitan & Co, India)

In a decision delivered on October 5, India’s Income Tax Appellate Tribunal, New Delhi ruled that the Indian Income Tax Act cannot limit the claim of expenses of a permanent establishment in the absence of such limitation in the India-Mauritius tax treaty.Continue Reading

Mutual Agreement Procedure Statistics Published for 2017

Posted on by in Africa, Americas, Argentina, Asia Pacific, Australia, Austria, BEPS, Brazil, Canada, Chile, China, Denmark, Europe, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Italy, Japan, Kenya, Latest, Luxembourg, Mauritius, Mexico, Netherlands, New Zealand, Norway, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, Transfer Pricing, Turkey, UK, US and tagged .
Mutual Agreement Procedure Statistics Published for 2017

The OECD on October 10 published its 2017 mutual agreement procedure (MAP) statistics covering 85 tax jurisdictions.

According to the 2017 MAP statistics, new transfer pricing MAP cases are up by 25 percent and other MAP cases by 50 percent. Anecdotal evidence suggests that the increase in new MAP cases is due to a range of factors including the effects of the new reporting framework and increased awareness of and expectations from taxpayers about MAP, the OECD noted.Continue Reading

India Concluding More Bilateral Advance Pricing Agreements

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India Concluding More Bilateral Advance Pricing Agreements

The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also  regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597). 

The Indian tax authority, Central Board of Direct Taxes, has published its second annual report on advance pricing agreement (APA) highlighting the progress made in 2017-18.Continue Reading

Indian Tax Authority Extends ‘Significant Economic Presence’ Consultation Deadline

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Indian Tax Authority Extends ‘Significant Economic Presence’ Consultation Deadline

India’s tax authority has extended the earlier deadline of August 10 to submit comments on the newly introduced “significant economic presence” test to tax profits of foreign businesses.Continue Reading

‘Significant Economic Presence’ – Missing Pieces of the Indian Tax Puzzle!

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‘Significant Economic Presence’ – Missing Pieces of the Indian Tax Puzzle!

By Ritu Shaktawat (Associate Partner, Khaitan & Co, India) and Krutika Chitre (Associate, Khaitan & Co, India)

Ritu Shaktawat and Krutika Chitre of Khaitan & Co discuss the consultation document addressing the tax challenges of digital economy released by Indian’s Central Board of Direct Taxes on July 13, 2018.

Soon after having introduced ‘Google Tax’ in 2016, India becomes one of the first tax jurisdictions to treat ‘significant economic presence’ of a foreign enterprise as its taxable presence in India (effective from April 1, 2018 (that is, from assessment year 2019-20)).Continue Reading

No Indian Permanent Establishment for Nokia, But Concerns Remain

Posted on by in Asia Pacific, BEPS, Finland, India, Latest, Transfer Pricing and tagged .
No Indian Permanent Establishment for Nokia, But Concerns Remain

By Daksha Baxi (Head of International Taxation, Cyril Amarchand Mangaldas) and Jyoti Anumolu (Associate, Cyril Amarchand Mangaldas)

India’s Income Tax Appellate Tribunal (ITAT) at New Delhi last month delivered a significant decision in the case of Nokia Networks OY (taxpayer) on the issue of whether it’s Indian subsidiary, Nokia India Private Limited (NIPL) (which was assigned installation contracts by the taxpayer or entered into independent installation contracts with customers) constituted a permanent establishment (PE) for the taxpayer.Continue Reading

India’s CbC Reporting Requirement Clarified

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Maulik Doshi discusses CBDT's clarification issued in relation to the timeline for furnishing of Country-by-Country Report

By Maulik Doshi (Partner, Head of Transfer Pricing & International Tax, SKP Group) and Kamlesh Kaltari (Senior Manager, SKP Group)

As an active participant in the OECD’s base erosion and profit shifting (BEPS) project, India has implemented nearly all the BEPS recommendations and has taken several steps to amend the country’s domestic tax laws appropriately. The Indian Finance Act, 2016 implemented BEPS Action Item 13 by introducing a three-tiered transfer pricing documentation structure and made it effective from the 2016-17 financial year.Continue Reading

Indian Cabinet Approves Tax Treaty with Iran

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Indian Cabinet Approves Tax Treaty with Iran

The Indian Government has approved the country’s tax treaty with Iran.

The tax treaty is in line with the ones entered into by India with other countries. The proposed treaty also meets tax treaty-related minimum standards proposed under the OECD’s base erosion and profit shifting project, in which India is participating on an equal footing.Continue Reading

Indian 2018 Budget Introduces Virtual PE Concept to Tax Business Profits

Posted on by in Asia Pacific, BEPS, India, Latest, Transfer Pricing and tagged .
TP News India Tax

The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also  regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597). 

On February 1, 2018, India’s Finance Minister, Arun Jaitley, issued the country’s 2018 Budget, which introduces a new permanent establishment (PE) nexus based on virtual economic presence to tax business profits of foreign enterprises.Continue Reading

Indian Budget 2018: Transfer Pricing Expectations

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Maulik Doshi of SKP Group stresses what India's 2018 Budget must cover on the transfer pricing front

By Maulik Doshi (Partner, Head of Transfer Pricing & International Tax, SKP Group) and Kamlesh Kaltari (Senior Manager, SKP Group)

The Indian Government has, in recent past, taken bold and practical measures to align the Indian transfer pricing regulations with global best practices by introducing country-by-country reporting and “master” file regulations; interest limitation provisions; revising the rates under the safe harbor rules; rationalizing specified domestic transactions; and introduction of range concept and use of multiple-year data. Additionally, the Government has made several attempts on the administrative side to reduce litigation and introduce a taxpayer-friendly regime. Having said that, there are certain ambiguities that need to be resolved.

In the 2018 Budget, which is due to be presented on February 1, 2018, we hope to see appropriate steps being taken to address these ambiguities, some of which are listed below.Continue Reading

Indian IT Giant Infosys Signs APA with US

Posted on by in Americas, Asia Pacific, India, Latest, Transfer Pricing, US and tagged .
TP News India Tax

Indian IT giant Infosys Limited has announced the successful conclusion of an advance pricing agreement (APA) with the US Internal Revenue Service (IRS), a move that will enhance predictability of the company’s tax obligations in respect of its US operations.Continue Reading