India: Tax Court rules on selection of comparables
In determining transfer prices between a taxpayer and related parties one of the permitted methods is the transactional net margin method (TNMM). This compares profit margins to an appropriate base such as sales, assets or costs realized from a
See MoreIndia: Guidelines for application of the profit split method
India’s Central Board of Direct Taxes (CBDT) has issued Circular No. 2 of 2013, setting out guidelines for application of the Profit Split Method (PSM) in international transactions. The profit split method is one of the permitted methods for
See MoreIndia: Budget for 2013
According to the Indian Budget 2013, the Government is considering for following major tax initiatives: the introduction of a Direct Tax Code (DTC), a goods and services tax (GST) and General Anti-Avoidance Rules (GAAR). The main changes are
See MoreIndia: General Anti-Avoidance Rule For 2014
The General Anti –Avoidance Rule (GAAR) of India had been scheduled to be implemented from April 2014. After further consultation the provisions will however now come into effect from April 1, 2016 and these provisions would be used to target only
See MoreDTA between India and the UK
The UK tax authority, HM Revenue and Customs, has confirmed that a Protocol to the double taxation agreement (DTA) between India and the UK was signed on October 30,
See MoreIndia: Reduces tax rate on foreign borrowings
The Indian government has lowered the taxes charged on money borrowed by Indian companies in foreign currency. The changes are included in Finance Act 2012, which amends section 115A of the Income Tax Act and inserts a new section, 194LC, in the
See MoreIndia: Approves investor tax relief scheme
India's Finance Minister Shri. P. Chidambaram has approved a new tax relief scheme targeted at first time retail investors in the securities market. The Rajiv Gandhi Equity Saving Scheme (RGESS) will provide tax benefits to those investing up to
See MoreSri Lanka and India will soon sign a DTA
Sri Lanka and India will soon sign a double taxation agreement (DTA), an official from the Sri Lanka government said on July 12, 2012, following approval of a draft agreement by Sri Lanka's
See MoreAmendment to DTA between India and Japan enters into force
On May 24, 2012, the Indian government published a notification announcing the entry into force of an amendment to the DTA between India and Japan. The revised provisions became effective on April 1,
See MoreLithuania ratifies the DTA signed with India
Lithuania on May 4, 2012 ratified the double taxation agreement (DTA) the nation signed with
See MoreIndia- introduction of an APA program
The Finance Minister of India introduced the Finance Bill, 2012, on 16 March 2012 in which with respect to transfer pricing, the introduction of an advance pricing agreement (APA) program as well as other transfer pricing-related items has been
See MoreIndia’s Indirect Tax Revenues Peak
India's indirect tax revenue rose 9.6% in February, with the government having now collected 88.7% of its revenue target for the fiscal year to date. The latest statistics show that indirect tax revenue collections hit INR314bn (USD6.3bn), up 9.6%
See MoreIndian Service Tax regime will change from 1 July 2012
The Indian Service Tax regime will change from 1 July 2012. Currently, Service Tax, part of the Indian VAT CENVAT regime, is charged on services at varying, codified rates. This is now moving to a ‘Negative List’ system, meaning that all
See MoreDTA between India and Philippines is under revision
There are on-going negotiations for a revision of the existing double taxation agreement (DTA) between India and the Philippines. The Finance Minister of India raised the issue, during his recent bilateral meeting with Philippines’ Finance
See MoreIndia-Uruguay: Signed DTA
The Government of India has signed an agreement with Uruguay for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (DTA). According to the DTA the business profits will be taxable in
See MoreMineral resources rent tax demanded by an Indian state
Orissa has more than 35% of India’s iron ore reserves. Considering the potentially huge amount of money to be made not just benefitting a small group of private mining companies, the Chief Minister of Orissa has asked the Indian Prime Minister to
See MoreIndia signs DTA with Georgia
The Indian government has signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (DTA) with the government of Georgia. The DTA ensures that business profits will
See MoreIndian coal mining industry faces tax hit
Indian draft Mines and Minerals (Development and Regulation) Act added new provisions requiring non-coal mining companies to contribute 100% of their royalty to the proposed District Mineral Foundation, and coal mining companies to contribute 26%
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