India: Approves amendment in modified special incentive package Scheme

24 January, 2017

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’

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Vietnam approves protocol to a treaty between India and Vietnam

22 January, 2017

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

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India: Loss making company couldn’t be excluded from comparable list if it satisfies comparability analysis

22 January, 2017

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

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India: Foreign tax credit allowed on the basis of gross receipts

21 January, 2017

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

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Protocol to a treaty between India and Kuwait signed

18 January, 2017

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

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Protocol to the treaty between India and Singapore signed

08 January, 2017

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

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India: Protocol to the treaty with Kazakhstan 

08 January, 2017

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

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India: Service charge on restaurant bill not mandatory

03 January, 2017

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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MFN clause of the protocol to the Income and Capital Tax Treaty between France and India of 1992 activated

02 January, 2017

The most-favored-benefit clause of the Income and Capital Tax Agreement between France and India of 1992 was activated. As a result, the applicable tax rate and the amount of the withholding tax on dividends, interest, royalties and remunerations as

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India: decided to reduce the existing deemed profit rate

26 December, 2016

The Central Board of Direct Taxes announced 19 December 2016, stating that in order incentivize small traders/businesses to proactively accept payments by digital means, it has been decided to reduce the existing rate of deemed profit of 8% under

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India: Court’s decision on Computing section 10A deduction and intra-group services

26 December, 2016

Recently, In the case of Yokogawa India Ltd, The Supreme Court of India decided that the deduction under section 10A of the Income-tax Act, 1961, is to be determined at the point when computing the gross total income of the eligible undertaking and

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Protocol to a treaty between India and Tajikistan signed

23 December, 2016

India and Tajikistan signed an amending protocol to the India - Tajikistan Income Tax Treaty (2008) on 17 December 2016, for an avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on

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Cyprus-India tax treaty entered into force

18 December, 2016

The Income Tax Treaty between Cyprus and India entered into force on 16 December 2016.  The agreement was signed in November 18, 2015. The treaty generally applies from 1 January 2017 for Cyprus and from 1 April 2017 for

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The 16th Round of RCEP Negotiations Held in Tangerang

18 December, 2016

On December 1-10, the 16th Round of Regional Comprehensive Economic Partnership (RCEP) Negotiation was held in Tangerang, Indonesia. Attending were 10 countries of ASEAN, China, Japan, South Korea, Australia, New Zealand, India and the Secretariat

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India: Publishes goods and services tax rates

16 December, 2016

India has published the following Goods and Services Tax (GST) rates into the future of the implementation of the new consumption tax in 2017: 0% (essentials) 5% (basic goods) 12% 18% (principle rate) 28% (luxury goods) The central

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India and Cyprus signed a revised income tax treaty and Protocol

12 December, 2016

A revised Agreement between India and Cyprus for the Avoidance of Double Taxation and the Prevention of Fiscal evasion (DTAA) with respect to taxes on income, along with its Protocol, was signed on 18th November, 2016 in Nicosia, which will replace

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India: Approves higher taxes and penalties on black money bill

01 December, 2016

The lower house of Parliament (Lok Sabha) passed the Taxation Laws (Second Amendment) Bill 2016 (the Bill) on 29 November 2016, which aims to impose a higher tax rate and more stringent penalty provisions in respect of black money. The overview of

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India: Signs A further five unilateral advance pricing agreements

29 November, 2016

India's Central Board of Direct Taxes has entered into a further five unilateral advance pricing agreements (APAs). The APAs were signed on 27 October 2016 with Indian taxpayers operating in various sectors, including manufacturing and

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