Protocol to treaty between Brazil and India signed
Brazil and India signed an amending protocol to the Brazil – India Income Tax Treaty (1988), in Brasilia on 15 October 2013. Currently no further details of the protocol are
See MoreIndia – Government has raised VAT processing charges
In India the fee for accepting and processing Indian VAT annual returns was previously a flat INR 800 irrespective of the values in the return. But recently the Indian central government has raised the charges for accepting and processing Indian VAT
See MoreIndia – Implications of GAAR from 2015
Recently, in India general anti-avoidance rule (GAAR) has been introduced which will become effective from 1 April 2015 (Financial Year 2015-16). The rules for application of the GAAR provide certain exceptions which clarify that the GAAR will not
See MoreIndia: introducing VAT compliance with more fines
India will introduce a new range of fines to help improve the weak compliance record of many firms, following a recent increase in the number of Indian VAT audits. From 12 September 2013, India announcing an increased fine regime, including: Late
See MoreIndia: CBDT issues rules for application of GAAR
The government of India has allotted a General Anti Avoidance Rule (GAAR) in order to combat tax avoidance. The GAAR which was originally introduced in the 2012/13 budget will be effective from 1 April 2016. The Rules are applicable for tax years
See MoreIndia: CBDT amends rules relating to furnishing information on payments to nonresidents
India’s Central Board of Direct Taxes (CBDT) allotted Notification No. 67/20131 on 2 September 2013, revising the existing Rule 37BB of the Income Tax Rules 1962 which recommends the system for furnishing information electronically by a person
See MoreIndia: New Company Law enacted from 2014
The government of India enacted a new company law on 29 August 2013 which aims to make stronger the rights of shareholders and to increase corporate social responsibility. Companies will also be essential to improve the quality of their financial
See MoreIndia – Indian government set up its first Tax Administration Reform Commission
The Indian government set up its first Tax Administration Reform Commission on 26 August 2013. The seven-member panel is being given eighteen months to draw up its recommendations. The Commission is likely to put forward proposals for the creation
See MoreIndia – CBDT Releases Drafts on Transfer Pricing Safe Harbor Rules
India’s Central Board of Direct Taxes (CBDT) released draft transfer pricing “safe harbor” rules as part of an initiative by the government to reduce the number of transfer pricing audits and protracted disputes on 14th August 2013,. Under the
See MoreIndia – No transfer pricing adjustment required on certain interest-free advances
Recently, Income Tax Appellate Tribunal by a ruling rejected and deleted transfer pricing adjustments proposed with respect to a taxpayer’s interest-free advances made to its related party (a U.S. subsidiary) on a finding that the taxpayer had
See MoreProtocol to DTA between India and Morocco signed
India and Morocco have signed a protocol to their Double Taxation Avoidance Convention. This protocol will bring the information exchange provisions under the treaty into line with international standards. There is an increasing international
See MoreIndia: CBDT recommends furnishing of additional information to claim tax treaty benefits
India’s Central Board of Direct Taxes (CBDT) allotted Notification No. 57 of 2013 on 1st August 2013 and this notification will come into force as of 1st April 2013. The Notification proposes information that is required if a taxpayer is to
See MoreIndia: Criteria for manual selection of cases for transfer pricing audit
Instruction No. 10 of 2013 has been issued by the Central Board of Direct Taxes (“CBDT”) on 5th August 2013 which specifying the procedures and criteria for manual selection of cases by the tax administration for audit/ scrutiny for financial
See MoreIndia: Treaty between India and Uruguay enters into force
The Income and Capital Tax Treaty between India and Uruguay entered into force on 21 June 2013. The treaty generally applies from 1 January 2014 for Uruguay and from 1 April 2014 for India. This treaty was signed in September 8, 2011. Under the
See MoreIndia: Decision on benchmarking international transactions
Recently the Income Tax Appellate Tribunal (“ITAT”) provides their decision regarding “standard analysis that every international transaction will have to be benchmarked and analyses separately by comparing it with independent uncontrolled
See MoreIndia: Documentation rules for transactions with “notified jurisdictional areas”
Section 94A to the Income Tax Act, 1961 empowers the Indian Government to blacklist certain jurisdictions which do not effectively exchange information with India. Those jurisdictions are classified as “notified jurisdictional areas.” The
See MoreIndia: Internal TNMM will be given priority over external TNMM
The Mumbai Bench of the Income-tax Appellate Tribunal (ITAT) recently it has been held that the transactional net margin method (TNMM) does not require a similarity of products and that internal TNMM analysis is acceptable for determining the
See MoreIndia: CBDT has withdrawn the guideline of profit-split method for transfer-pricing transactions, and amends the circular on contract R&D
The Central Board of Direct Taxes (CBDT) withdrew Circular No. 2/2013 on June 2013as it gives the impression that the profit split method is the preferred method in cases involving unique intangibles or in multiple interrelated international
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