India: WTO conducts trade policy review
The World Trade Organization (WTO) is conducting a trade policy review of India on 2 and 4 June 2015. The report on India’s trade policy issued by the WTO before the review and published on its website indicates that trade liberalization has
See MoreIndia: Elements for Including or Excluding Comparable Companies
In the case of Chrys Capital Investment Advisors (India) Pvt. Ltd. v. DCIT ITA No. 417 of 2014, the Delhi High Court confirmed a verdict of the Delhi Bench of Income-tax Appellate Tribunal that if a company has high or extremely high profits and
See MoreIndia: High Court Decision on Cross-border Loan Transaction
The Delhi High Court in the case of: CIT v. Cotton Naturals India Pvt. Ltd. [ITA No. 233/2014 (AY 2007-08) (Delhi High Court) concerning the benchmarking of the rate of interest on an inter-company loan made to a foreign related party—held that
See MoreIndia: Extends Time for Filing Roll-back Applications under APA
The Central Board of Direct Tax authorities announced that the deadline for filing APA (Advance Pricing Agreement) rollback applications has been extended to 30 June 2015. Originally, the date for filing rollback applications was 31 March
See MoreIndia: Introduced rollback provisions under the Advance Pricing Agreement
The Finance (No.2) Act, 2014 introduced the rollback provisions under the Advance Pricing Agreement (APA) program. The rules have been notified / SO 758(E)] on 14 March 2015 setting out the applicability and the requirement for applying
See MoreIndia: IMF makes recommendations on fiscal policy
On 11 March 2015 the IMF issued a press release on their consultation with India under Article IV of its articles of agreement. The IMF considers that India’s short term outlook has improved with increased business confidence and several positive
See MoreIndia: Finance Minister releases 2015 -2016 Budget
The Honorable Finance Minister of India on 28th February announced a budget aimed at high growth, saying the pace of cutting the fiscal deficit would slow as he seeks to boost investment and ensure that ordinary people benefit. Presenting the budget
See MoreIndia- Trade Agreement With GCC
The Gulf Cooperation Council (GCC) and India are in the process of negotiating a Free Trade Agreement. The Gulf Cooperation Council (GCC) consists of six countries - Kuwait, UAE, Saudi Arabia, Oman, Bahrain and Qatar. The negotiations with all
See MoreIndia: Amendments to Transfer Pricing Guidelines Issued
The Central Board of Direct Taxes released amendments to the transfer pricing guidelines on 4 February 2015. The “simplified” transfer pricing documentation rules were released by a notification dated 4 February 2015 for domestic transactions of
See MoreAustralia and India accelerate trade agreement negotiations
Negotiations to conclude the Australia-India Comprehensive Economic Cooperation Agreement (CECA) are progressing, with the aim to reach an early conclusion this year. The sixth round of the CECA negotiations was held in New Delhi from 18-19 December
See MoreSouth Africa and India: Protocol to treaty enter into force
The amending protocol for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income between India and South Africa enters into force entered into force on 26 November 2014. The protocol generally applies
See MoreIndia: High Court decision that “royalty” income received under a contract prior to 1 April 1976 is exempt from tax
The High Court (HC) of Mumbai issued its decision on 8 August 2014, in the case of CIT v. Montedison S.p.A. of Italy (ITR 202 of 1993) that "royalty" income arising from contracts for supply of technical know-how prior to 1 April 1976 was exempt
See MoreIndia: Update on GST and management service fees
The Union Cabinet approved the Constitutional Amendment Bill on Goods and Services Tax (GST) on 17 December 2014 and this can be passed to parliament for consideration. The clearance of the Bill by the Cabinet was achieved by a compromise. It was
See MoreIndia & Japan: First bilateral APA signed
The Central Board of Direct Taxes (CBDT) signed a bilateral Advance Pricing Agreement (APA) with a Japanese company on 19 December 2014. This is India’s first bilateral APA which has been signed for a period of 5 years. Moreover, CBDT was proud to
See MoreIndia: Taxpayer’s use of the Resale Price Method for distribution activities Supported by the court
In the case of : CIT v. L’Oreal India Pvt. Ltd. (ITA No. 1046 of 2012 (7 November 2014), The Bombay High Court confirmed a tribunal decision that, the taxpayer’s use of the Resale Price Method (RPM) for purposes of determining the arm’s
See MoreIndia: Publishes Circular on authorization of long-term bonds and rate of interest
With effect from 1 October 2014, the Finance (No. 2) Act 2014 has amended section 194LC (i.e. interest on a foreign currency loan paid by an Indian company) of the Income-tax Act 1961. Consequent to the amendment, the concessional rate of
See MoreIndia: Simplifies immigration procedures for Japanese nationals
The Government of India has simplified the rules on the validity of residential permits and visa/residential permit extension procedures for Japanese nationals travelling to
See MoreThe Protocol to Tax Treaty between Morocco and India
On August 2013, the protocol to the Morocco and India tax treaty was signed in New Delhi. The protocol updates on treaty, to bring it in line with the OECD standard for exchange of information. The protocol will enter into force after the exchange
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