India: Proposes to introduce thin capitalization rule
Based on India's commitment to counter tax avoidance, recently the Finance Bill, 2017 has proposed to introduce new section i.e. section 94B namely Limitation on interest deduction in certain cases. The said section is in line with the
See MoreProtocol to treaty between India and Austria signed
India and Austria signed a Protocol amending the existing Convention between the two countries for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income on 6 February 2017 in New Delhi. The Protocol was
See MoreIndia: Proposes amendments to the transfer pricing regulations
Indian Finance Minister published India’s 2017-18 budget on 1 February 2017. Along with other measures, the budget has proposed following important amendments to the provisions of transfer pricing (TP) regulations of India: –A major proposal in
See MoreIndia: Presents Budget for 2017-18
The Finance Minister of India presented Budget for 2017-18 to the Parliament on 1 February 2017. Here are the main tax proposals of the Union Budget 2017-2018: Corporate tax: The new Budget introduced following concessional tax rate for small
See MoreIndia: Finance Minister mentioned 10 measures in his Budget speech for 2017
Indian Finance Minister Arun Jaitley today underlined the importance of infrastructure in his scheme of things for the Indian economy while presenting the Union Budget in Parliament. The 10 measures regarding infrastructure summarised here: To
See MoreIndia: Finance Minister presenting the Union Budget 2017-2018
Indian Finance Minister Arun Jaitley presenting his fourth Union Budget 2017-2018 at 11 am
See MoreIndia announces GAAR will be effective from April 1, 2017
On 27 January 2017, the CBDT has issued Circular No. 7 of 2017 and provided important clarifications on the implementation of GAAR which are to come into force from 1 April 2017. The Circular provides clarifications, considering the comments of the
See MoreIndia: Union Budget 2017 to be presented on February 1
A senior government official said on 19 January 2017, the Indian Government will present the Union Budget for 2017-18 on February 1, for the financial year starting on 1 April 2017. The first part of the budget session of parliament will start on
See MoreIndia: CBDT extends deadline for the dispute resolution scheme
The Central Board of Direct Taxes (CBDT) has issued a Notification (No. 124/2016 of 29 December 2016) in order to extend the deadline for the Direct Tax Dispute Resolution Scheme, 2016 to 31 January 2017. The Dispute Resolution Scheme, 2016 was
See MoreIndia: CBDT Publishes draft guidelines for determination of the POEM
The Central Board of Direct Taxes (CBDT) on 24 January 2017, has issued the guiding principles to be followed for determination of the place of effective management of a company (POEM). The concept of PoEM for deciding the residential status of a
See MoreIndia: Approves amendment in modified special incentive package Scheme
On 18 January 2017, the Indian Union Cabinet has given its approval for amendment in the Modified Special Incentive Package Scheme (M-SIPS) to further incentivize investments in Electronic Sector and moving towards the goal of ‘Net Zero imports’
See MoreVietnam approves protocol to a treaty between India and Vietnam
On 17 January 2017, through a press release published by the Vietnamese government, Vietnam has approved the amending protocol to a treaty between India and Vietnam. The treaty (India-Vietnam) was signed on 3 September 2016 for the avoidance of
See MoreIndia: Loss making company couldn’t be excluded from comparable list if it satisfies comparability analysis
The Ahmedabad Bench of Income-tax Appellate Tribunal in case of: Erhardt+Leimer (India) Private Limited v. ACIT (ITA Nos. 3298/Ahd/2011 & 2880/Ahd/2012) held that consistent loss-making companies cannot be rejected as comparable unless the
See MoreIndia: Foreign tax credit allowed on the basis of gross receipts
The Ahmedabad Bench of the Income-tax Tribunal (the Tribunal) in the case of Elitecore Technologies Private Limited, held that the Foreign Tax Credit (FTC) is eligible on ‘income’ and not on ‘gross receipts’. However, based on unusual facts
See MoreProtocol to a treaty between India and Kuwait signed
The Kuwaiti Ministry of Finance on 15 January 2017, signed a protocol with India amending the agreement between the two countries to avoid double taxation on income and to prevent tax evasion. The protocol amends the types of Kuwaiti taxes in
See MoreProtocol to the treaty between India and Singapore signed
An amending protocol to the India - Singapore Income Tax Treaty (1994) was signed on 30 December 2016. The treaty already had been amended by the 2005 and 2011
See MoreIndia: Protocol to the treaty with Kazakhstan
India and Kazakhstan signed an amending protocol to the India – Kazakhstan Income and Capital Tax Treaty (1996), in New Delhi on 6 January 2017. The treaty provides for the avoidance of double taxation and the prevention of fiscal evasion with
See MoreIndia: Service charge on restaurant bill not mandatory
The Department of Consumer Affairs on 2 January 2017 said that service charges on a restaurant bill in addition to taxes are optional and the consumer has the discretion to pay a service charge or not. Customers dissatisfied with service at any
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