Tax Flash News | KPMG | IN

Tax Flash News

Tax Flash News

Tax laws in India are subject to interpretation by judicial authorities, and changes by way of amendments to the statute.

Flash News enables you to stay abreast of the latest developments.

05/10/2018 - ‘Inland Container Depots’ are ‘Inland Ports’ and therefore eligible for benefit under Section 80-IA of the Income-tax Act – Supreme Court1 CIT v. Container Corporation of India Ltd. (Civil Appeal No. 8900 of 2012 (SC) – Taxsutra.com - (PDF 731 KB)

05/09/2018 - Amendment to Section 40(a)(ia) with respect to ‘no disallowance if TDS has been deposited before the due date of return filing’ is retrospective in nature – Supreme Court1 CIT v. Calcutta Export Company (Civil Appeal Nos. 4339-4340 of 2018)– Taxsutra.com - (PDF 441 KB)

05/08/2018 - Expenditure excluded from ‘export turnover’ shall also be excluded from ‘total turnover’ for computing deduction under Section 10A of the Income-tax Act – Supreme Court1 CIT v. HCL Technologies (Civil Appeal No. 8489-8490 of 2013) – Taxsutra.com - (PDF 569 KB)

05/08/2018 - Reassessment proceedings cannot be initiated on the basis of change of opinion and under the same facts and circumstances which existed at the time of assessment – Supreme Court1 ITO v. Techspan India Private Ltd. & Anr. (Civil Appeal 2732 of 2007) (SC) – Taxsutra.com - (PDF 721 KB)

05/08/2018 - Waiver of loan taken for purchase of a capital asset is not taxable as business income under the Income-tax Act – Supreme Court1 The Commissioner v. Mahindra and Mahindra Ltd (Civil Appeal No. 6949-6950 of 2004) – Taxsutra.com - (PDF 758 KB)

05/08/2018 - Lump sum allowance paid without proof of expenses to assignees for boarding and lodging outside India is fully taxable1 Section 10(14) of the Act read with Rule 2BB of the Income tax Rules, 1962 - (PDF 722 KB)

05/07/2018 - KPMG India Tax Konnect – May 2018 - (PDF 987 KB)

05/05/2018 - Lumpsum payment of royalty for use of trade mark is revenue in nature and therefore allowed as business expenditure1 Hilton Roulunds Ltd v. CIT (ITA 325/2005) – Taxsutra.com - (PDF 785 KB)

05/05/2018 - CBDT draft notification prescribes the manner of determination of FMV of the inventory which has been converted into, or treated as, capital asset1 Clause (via) to Section 28 of the Act - (PDF 667 KB)

05/04/2018 - Redemption of stock appreciation rights are not taxable as perquisite under the erstwhile law – Supreme Court1 ACIT v. Bharat V. Patel (Civil Appeal No. 4380 of 2018) – Taxsutra.com - (PDF 745 KB)

04/17/2018 - DIPP notification on the procedure for ‘startups’ to avail tax benefit1 Notification No. 180(E) dated 17 February 2017, Notification No. 501(E) dated 23 May 2017 - (PDF 828 KB)

04/16/2018 - Employees’ Provident Fund Organisation decides to keep the instruction on mandatory submission of online withdrawal claims in abeyance -1 Circular issued by EPFO, dated 13 April 2018 Accessed on 13 April 2018 - (PDF 543 KB)

04/13/2018 - CBDT notifies Income Tax Return forms for Assessment Year 2018-191 Notification F. No.16/2018/ F.No.370142/1/2018-TPL, dated 3 April 2018 - (PDF 586 KB)

04/12/2018 - CBDT draft notification - proposed amendment to advance ruling rules and forms in line with BEPS Action Plan 51 Substituted clause (b) of Section 245N of the Act - (PDF 362 KB)

04/12/2018 - KPMG India Tax Konnect – April 2018 - (PDF 721 KB)

04/10/2018 - Vessels engaged in seismic surveys on the high seas, in connection with the exploration of mineral oil/natural resources, constitute fixed place PE under the India-UAE tax treaty1 SeaBird Exploration FZ LLC (AAR No. 1295 of 2012) – Taxsutra.com - (PDF 364 KB)

04/10/2018 - Government of India issues detailed visa guidelines - 4 Global Initiative for Academic Networks - (PDF 568 KB)

04/10/2018 - Foreign Exchange Management (Cross Border Merger) Regulations, 2018 - 1 Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017 - (PDF 485 KB)

04/10/2018 - Fees received for domain name registration are taxable as royalty under Section 9(1)(vi) of the Income-tax Act - 1 Godaddy.com LLC v. ACIT (ITA No. 1878/Del/2017) – Taxsutra.com - (PDF 686 KB)

04/06/2018 - Payments by television channel entity to advertising agencies are ‘commission’ under Section 194H of the Income-tax Act and therefore liable for deduction of tax at source1 The Director, Prasar Bharti v. CIT (Civil Appeal Nos. 3496-3496 of 2018) – Taxsutra.com - (PDF 675 KB)

04/06/2018 - Payment for intellectual property rights is taxable as royalty in India1 Dorf Ketal Chemicals LLC v. DCIT (ITA No. 4819/Mum/2013) – Taxsutra.com - (PDF 554 KB)

04/05/2018 - Reimbursement of lease line charges having no income element is not taxable in India. Amendment in the Income-tax Act does not apply to the provisions of India-U.S. tax treaty1 T3 Energy Services India Pvt. Ltd v. JCIT (ITA No. 826/Pun/2015) – Taxsutra.com - (PDF 457 KB)

04/03/2018 - Services provided by the seconded employees of a foreign company to its subsidiary in India do not result in permanent establishment1 Samsung Electronics Company Ltd v. DCIT [2018-TII-91-ITAT-DEL-INTL] - (PDF 576 KB)

04/03/2018 - KPMG Tax Assemblage – January to March 2018 - (PDF 658 KB)

04/02/2018 - The Government of India will contribute employer’s full Provident Fund contribution for certain new employees under the Pradhan Mantri Rojgar Protsahan Yojana1 Press Release, Press Information Bureau, Government of India dated 28 March 2018, Accessed on 2 April 2018 - (PDF 407 KB)

04/02/2018 - The Government of India issues notification on enhancing maximum gratuity amount from the existing INR10 lakh to INR20 lakh under the Payment of Gratuity Act, 19721 http://egazette.nic.in/WriteReadData/2018/184298.pdf - (PDF 544 KB)

03/23/2018 - OECD interim report on the tax challenges arising from digitalisation pursuant to BEPS Action Plan 1 - 1 OECD/G20 BEPS Project – Tax Challenges Arising from Digitalisation – Interim Report 2018 www.oecd.org - (PDF 603 KB)

03/23/2018 - Indian APA accepts Customs Valuation as Arm’s Length Price (ALP) for Transfer Pricing (PDF 642 KB)

03/23/2018 - Highlights of the tax treaty between India and Hong Kong - 1 One of which is the relevant assessment year - (PDF 621 KB)

03/20/2018 - Marketing and business development services are not in the nature of FTS and in the absence of a PE under the India-Singapore tax treaty, such services are not taxable in India - 1 Fractal Analytics Pvt Ltd v. DCIT [2018-TII-81-ITAT-MUM-INTL] - (PDF 554 KB)

03/20/2018 - Disallowance under Section 14A of the Income-tax Act is applicable to expenditure in relation to exempt income from strategic investment/stock-in-trade - Supreme Court - 1 Maxopp Investment Ltd v. CIT (Civil Appeal Nos 104-109 of 2015) – Taxsutra.com - (PDF 496 KB)

03/17/2018 - Disallowance under Section 14A of the Income-tax Act is applicable to expenditure in relation to exempt income from strategic investment/stock-in-trade - Supreme Court - Maxopp Investment Ltd. CIT (Civil Appeal Nos 104-109 of 2015) - Taxsutra.com (PDF 440 KB)

03/16/2018 - Conversion of loan into equity as part restructuring is a genuine transaction and it does not violate provisions of Section 269T of the Income-tax Act and hence levy of penalty is to be deleted - Arkit Vincom Pvt. Ltd. v. ACIT (ITA No 2397/Kol/2016) - Taxsutra.com (PDF 667 KB)

03/15/2018 - Transfer pricing amendments to the Indian Budget proposals - (PDF 440 KB)

03/14/2018 - Proposed amendments to the Finance Bill, 2018 - 1 To amend second proviso to Explanation 2A - (PDF 583 KB)

03/14/2018 - Once deduction under Section 10AA has been accepted in the first year, it cannot be withdrawn in the subsequent year by examining factors which were required to be seen in the first year - 1 Macquarie Global Services Pvt. Ltd. v. DCIT (ITA No.:-6794/Del/2017) – Taxsutra.com - (PDF 561 KB)

03/12/2018 - Service of notice on the authorised representative of the taxpayer is deemed to be served on the taxpayer – Supreme Court - 1 ITO v. Dharam Narain (Civil Appeal No(s). 2262 of 2018) – Taxsutra.com - (PDF 696 KB)

03/09/2018 - KPMG India Tax Konnect – March 2018 (PDF 494 KB)

03/09/2018 - Sale of shares of the subsidiary to the second step down subsidiary is exempt under the provisions of Section 47(iv) of the Income-tax Act - 1 Emami Infrastructure Limited v. ITO (ITA No. 880/Kol/2014) – Taxsutra.com - (PDF 461 KB)

03/09/2018 - Carry forward and set off of losses are permissible even when 51 per cent of the voting power is beneficially held by the same persons during the year of loss as well as in the year of set-off - 1 Wadhwa & Associates Realtors Private Ltd v. ACIT (ITA No. 967/M/2016) – Taxsutra.com - (PDF 460 KB)

03/09/2018 - Referral fees are not in the nature of FTS but business income and not taxable in India1 DCIT v. Credit Suisse AG (ITA No.1247/Mum/2016) – Taxsutra.com - (PDF 460 KB)

03/07/2018 - Employees’ Provident Fund Organisation makes submission of claims through online mode mandatory if the settlement amount of the provident fund is above INR10 lakhs -1EPFO Circular-https://epfindia.gov.in/site_docs/PDFs/Circulars/Y2017-2018/WSU_OnlineModeSettlement_20514.pdf - (PDF 696 KB)

03/01/2018 - If the POEM of an enterprise is not situated in one of the contracting states but is situated in the third state, the benefit of the shipping and air transport article of the India-Mauritius tax treaty cannot be granted - 1 ADIT v. Bay Lines (Mauritius) [ITA No. 1181/Mum/2012] – Taxsutra.com - (PDF 617 KB)

02/27/2018 - Carry forward and set off of losses are not allowed in view of change in shareholding, however, it does not impact unabsorbed depreciation - 1DCIT v. Credila Financial Services Private Limited (ITA No.1491/Mum/2016) – Taxsutra.com (PDF 440 KB)

02/26/2018 - India signs first ever two APAs on Advertising, Marketing and Promotion (AMP) controversy - (PDF 491 KB)

02/23/2018 - In case of conflict between the tax rate prescribed in Section 206AA of the Income-tax Act and in a tax treaty, the tax treaty rate would apply1 Danisco India Private Limited v. UOI (W.P. (C) 5908/2015) – Taxsutra.com - (PDF 369 KB)

02/22/2018 - Capital gains invested in house property along with furniture and fixtures eligible for deduction1 Section 54 of the Act - (PDF 588 KB)

02/15/2018 - KPMG India Tax Konnect – February 2018 - (PDF 585 KB)

02/15/2018 - While making a payment for purchase of property from a non-resident, tax is to be deducted on actual sale consideration and not on stamp duty value1 Shri Bhagwandas Nagla v. ITO (ITA No. 143/Hyd/2017) – Taxsutra.com - (PDF 356 KB)

02/15/2018 - Indian FRRO registration, visa extension, conversion, etc goes digital - 1 https://indianfrro.gov.in/eservices/ - (PDF 478 KB)

02/13/2018 - Rule 8D of the Income-tax Rules is prospective in nature and cannot be applied prior to AY 2008-09 – Supreme Court1 CIT v. Eassar Teleholdings Ltd (Civil Appeal No.2165 of 2012) – Taxsutra.com - (PDF 559 KB)

02/13/2018 - CBDT issues instruction with respect to the conduct of assessment proceedings in scrutiny cases electronically1 CBDT letter, dated 23 June 2017 - (PDF 438 KB)

02/12/2018 - AAR rulings dealing with the taxability of capital gains under the India-Mauritius tax treaty1 AB Holdings, Mauritius-II (AAR No. 1129 of 2011) - http://aarrulings.in/ -  (PDF 604 KB)

02/09/2018 - No withholding of tax on salaries paid by an employer in India to its non-resident employees working outside India. Foreign Tax credit may be availed at withholding stage for resident employee - 1Section 5,6 and 9 of the Act - (PDF 561 KB)

02/05/2018 - CBDT issues FAQs on new taxation regime of long-term capital gains proposed in Finance Bill, 2018 - 2 F. No. 370149/20/2018-TPL, dated 4 February 2018 - (PDF 482 KB)

02/02/2018 - Union Budget 2018 – Transfer pricing proposals relating to Country-by-Country Report regulations - (PDF 431 KB)

02/02/2018 - Union Budget 2018-19 - (PDF 1.3 MB)

01/31/2018 - The Supreme Court refers matter to the larger bench on the issue of applicability of deemed dividend provisions1 National Travel Services v. CIT (Civil Appeal Nos. 2068-2071 of 2012) – Taxsutra.com - (PDF 554 KB)

01/29/2018 - India Economic Survey 2017-18 – Key Highlights - 1 Booz & Company (ME) FZ-LLC v. DDIT (ITA No. 4063/Mum/2015(Assessment Year 2011-12) – Taxsutra.com - (PDF 569 KB)

01/25/2018 - No Service PE in India under the India-UAE tax treaty since the period of working of employees is less than nine months - 1 Booz & Company (ME) FZ-LLC v. DDIT (ITA No. 4063/Mum/2015 (Assessment Year 2011-12) – Taxsutra.com -(PDF 683 KB)

01/23/2018 - Capital gains arising from indirect transfer of shares of an Indian company on sale of shares of German company are not taxable in India - 1 GEA Refrigeration Technologies GmbH (AAR No. 1232 of 2012) – Taxsutra.com - (PDF 475 KB)

01/19/2018 - Interest on inter-corporate deposits which have become NPA is not taxable under the Income-tax Act – Supreme Court1 CIT v. Vasisth Chay Vyapar Ltd (Civil Appeal No. 5811 of 2012) – Taxsutra.com -
(PDF 427 KB)

01/19/2018 - Payment for offshore supply of an equipment is not taxable in India, whereas, supervisory services for installation of such equipment are taxable in India - 1 Michelin Tamil Nadu Tyres Pvt Ltd (AAR No.1218 of 2011) - Taxsutra - (PDF 640 KB)

01/19/2018 - Space provided by an organiser to a foreign entity for rendering services relating to an event constitutes a PE in India1 Production Resource Group (AAR No. 1330 of 2012, dated 8 November 2017) – Taxsutra.com - (PDF 484 KB)

01/12/2018 - Jaipur Tribunal’s decision on revenue recognition in case of real estate developer1 Vastukar Township Pvt. Pvt. Ltd. v. DCIT (ITA No. 105/JP/2017) – Taxsutra.com - (PDF 604 KB)

01/12/2018 - Liberalisation of the Foreign Direct Investments Policy - (PDF 585 KB)

01/12/2018 - Ex-gratia from employer for settling industrial dispute is eligible for exemption under Section 10(10B) of the Income-tax Act2 Section 10(10B) of the Act - (PDF 620 KB)

01/11/2018 - The amendment with respect to specified domestic transaction by the Finance Act, 2017 is deemed to be omitted from its inception1 Texport Overseas Private Limited v. DCIT – [IT (TP)A No. 1722/Bang/2017] – Taxsutra.com - (PDF 676 KB)

01/11/2018 - KPMG Tax Assemblage - 2017 - (PDF 964 KB)

01/10/2018 - KPMG India Tax Konnect – January 2018 - (PDF 566 KB)

01/09/2018 - CBDT issues press release relaxing MAT provisions for the companies undergoing corporate insolvency resolution process1 CBDT press release, dated 6 January 2018 - (PDF 497 KB)

01/09/2018 - Annual franchise fees paid to BCCI to operate and participate in IPL are allowed as revenue expenditure1 Knight Riders Sports Private Limited v. ACIT (ITA No. 1307/Mum/2013) – Taxsutra.com - (PDF 435 KB)

01/09/2018 - KPMG Tax Highlights - (PDF 1.3 MB)

01/08/2018 - India signs first ever bilateral APA with the U.S.A.1 Taxsutra article dated 5 January 2018 - (PDF 487 KB)

12/22/2017 - Taxpayer’s aggregation of IT services and ITeS provided to Associated Enterprises under a single composite contract upheld - 1 Data Core (India) Pvt. Ltd. vs ITO (ITA No. 387/Kol/2015) - (PDF 448 KB)

12/19/2017 - Subsidy in the form of concession of entertainment tax to new multiplex complexes is capital in nature – Supreme Court- 1CIT v. Chaphalkar Brothers (Civil Appeal Nos. 6513-6514 of 2012, dated 7 December 2017) – Taxsutra.com (PDF 434 KB)

12/13/2017 - Indian group company of a U.S. entity does not constitute a PE in India under the India-U.S. tax treaty - 1 SPE Networks India Inc. v. DCIT (ITA No. 652/Mum/2014) [2017-TII-208-ITAT-MUM-INTL - (PDF 435 KB)

12/12/2017 - Benefit of deduction is denied as eligibility of being a ‘small scale industrial undertaking’ is lost in subsequent years even if in the initial year eligibility was satisfied – Supreme Court - (PDF 452 KB)

12/11/2017 - Since the taxpayer is incorporated and liable to tax in the UAE, it is eligible for the India-UAE tax treaty be  - (PDF 448 KB)

12/6/2017 - KPMG India Tax Konnect – December 2017 - (PDF 764 KB)

12/4/2017 - CBDT Circular/Instruction specifying monetary limit for filing appeal is applicable even to pending appeals/matters subject to certain conditions – Supreme Court - 1DIT v. S.R.M.B. Dairy Farming (P) Ltd. [SLP(C) No. 24055/2013, dated 14 November 2017] – itatonline.com (PDF 601 KB)

12/1/2017 - Payment for intranet charges and SAP software is royalty under the Income-tax Act as well as under the India-Germany tax treaty - 1SMS Iron Technology Pvt. Ltd v. ITO (ITA No. 4480 to 4486/Del/2014) – Taxsutra.com (PDF 448 KB)

11/30/2017 - India’s reservations on 2017 update to the OECD Model Tax Convention and Commentary - 1The 2017 update to OECD MC has been approved by OCED Council on 21 November 2017. Source – www.oecd.org (PDF 747 KB)

11/30/2017 - Advance deposit of central excise duty in the personal ledger account amounts to actual payment of duty under Section 43B of the Income-tax Act and hence eligible for deduction – Supreme Court - 1 CIT v. Modipon Ltd (Civil Appeal No. 19763 of 2017) – Taxsutra.com(PDF 612 KB)

11/27/2017 - Interest accumulated in a recognised Provident Fund account post retirement/end of employment is considered taxable - 1 ACIT v. Shri Dilip Ranjrekar (ITA No 858 of 2016) (Bang) (PDF 643 KB)

11/24/2017 - Income earned abroad by a non-resident cannot be taxed in India for mere receipt of salary in Indian bank account - 1Pramod Kumar Sapra v. ITO (ITA No 5965 of 2015) (Del) (PDF 616 KB)

11/21/2017 - Anti-avoidance provisions of Section 93 of the Income-tax Act do not apply where assets are transferred from a non-resident to a resident - 1Tata Industries Ltd. v. ACIT (ITA No. 6750/Mum/2014) – Taxsutra.com (PDF 580 KB)

11/21/2017 - Rajasthan High Court’s Larger Bench’s decision on filing of appeal by the tax department contrary to the CBDT circular on monetary limits - 1Larger Bench comprising of 3 judges(PDF 582 KB)

11/17/2017 - CBDT lays down the guidelines for the applicability of Section 143(1)(a)(vi) of the Income-tax Act while processing certain return of income - 1 CBDT Instruction No. 10/2017, dated 15 November 2017 (PDF 338 KB)

11/17/2017 - Amendment in the Income-tax Act does not affect the provisions of the tax treaties unless the same are included in the tax treaty1DCIT v. Bank of India (ITA No. 3082/Mum/2015) – Taxsutra.com (PDF 647 KB)

11/17/2017 - Amendment in the Income-tax Act does not affect the provisions of the tax treaties unless the same are included in the tax treaty - 1DCIT v. Bank of India (ITA No. 3082/Mum/2015) – Taxsutra.com (PDF 645 KB)

11/16/2017 - Depreciation on goodwill is allowed under Section 32 of the Income-tax Act1 PCIT v. Zydus Wellness Ltd [2017] 87 taxmann.com 82 (Guj) (PDF 429 KB)

11/15/2017 - Premature redemption of secured premium notes is not a colourable device. Premium paid on the same is allowed as deduction under the Income-tax Act1 Nirma Ltd v. ACIT (Tax Appeal No. 1219 of 2006) – Taxsutra.com (PDF 726 KB)

11/13/2017 - TDS provisions are applicable on the provision for expenditure created in books of accounts and reversed subsequently - 1Toyota Kirloskar Motors Pvt Ltd v. ITO (ITA No. 1185/Bang/2014) – Taxsutra.com (PDF 413 KB)

11/13/2017 - CBDT clarifies that indirect transfer provisions shall not apply to a non-resident on account of redemption or buy-back of its share or interest held indirectly in specified funds - 1CBDT Circular No. 28/2017, dated 7 November 2017 (PDF 333 KB)

11/10/2017 - State taxes paid in the United States of America (USA) eligible for foreign tax credit in India1Dr. Rajiv I. Modi v. DCIT (ITA No. 1285 [AHD] 2014, dated 21 September 2017) (PDF 452 KB)

11/09/2017 - The Delhi High Court decision on the constitutional validity of ICDS1The Chamber of Tax Consultants & Anr v. UOI [W. P. (C) 5595/2017 & CM APL 23467/2017] – Taxsutra.com  (PDF 353 KB)

11/07/2017 - KPMG India Tax Konnect – November 2017  (PDF 975 KB)

11/06/2017 - Mobilisation fees received for transportation of rigs for providing services and facilities in connection with the extraction of mineral oil in India are taxable under Section 44BB of the Income-tax Act – Supreme Court1Sedco Forex International Inc., Transocean Offshore Inc, Sedco Forex International Drilling Inc. v. CIT (Civil Appeal Nos. 4906 of 2010, 4907 of 2010, 4915 of 2010) – Taxsutra.com (PDF 652 KB)

11/06/2017 - Pension Fund Regulatory and Development Authority increases the maximum age of joining National Pension System (NPS) from 60 years to 65 years under NPS all citizen model and corporate sector model - 1http://pfrda.org.in/index1.cshtml?lsid=4 accessed on 3 November 2017 (PDF 342 KB)

11/03/2017 - CBDT cannot issue any Circular/Instruction having retrospective operation – Supreme Court - CIT v. Gemini Distilleries (Civil Appeal No. 16815/2017, dated 12 October 2017) (SC) (PDF 424 KB)

11/02/2017 - Final rules on Master File and Country by Country reporting released by Indian Government - CBDT Notification F. No. 370142/25/2017-TPL (PDF 445 KB)

10/31/2017 - India signs a Unilateral Advance Pricing Agreement (APA) covering marketing service, trading and assembly activities (PDF 490 KB)

10/28/2017 - Indian subsidiary of a foreign company providing back office support services does not constitute a PE in India under India- USA tax treaty – Supreme Court - ADIT v. E-Funds IT Solution Inc. [Civil Appeal No. 6082 of 2015] (SC) – Taxsutra.com (PDF 647 KB)

10/27/2017 - Payment for granting distribution right of ‘Adwords program’ is taxable as ‘royalty’ under the Income-tax Act as well as India- Ireland tax treaty - 1 Google India Private Ltd. v. ACIT [IT(TP)A.1511 to 1518/Bang/2013] – Taxsutra.com (PDF 968 KB)

10/26/2017 - CBDT signs unilateral APA with taxpayer operating in the travel industry - (PDF 477 KB)

10/25/2017 - Due date for furnishing Country by Country Report for first fiscal year in India extended to 31 March 2018 - CBDT Circular No. 26/2017 (PDF 476 KB)

10/24/2017 - CBDT issues clarification related to guidelines for establishing ‘Place of Effective Management’ in India - Circular No 6 of 2017, dated 24 January 2017 (PDF 505 KB)

10/18/2017 - Deemed dividend is not taxable in the hands of a loan recipient concern if such concern is not a shareholder of the lender company – Supreme Court - CIT v. Madhur Housing and Development Company (Civil Appeal No. 3961 of 2013) – Taxsutra.com (PDF 529 KB)

10/18/2017 - If the statute is unambiguous, it cannot be contended that the method which is favourable to the taxpayer should be adopted – Supreme Court - Bimal Kishore Paliwal & Ors v. CWT (Civil Appeal No.3836 of 2011) – Taxsutra.com (PDF 411 KB)

10/17/2017 - Employees’ Provident Fund Organisation has issued guidelines for monitoring the Provident Fund Trusts of exempted establishments - EPFO Circular - http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017-2018/Exem_OnlineReturn_ExEstt_10735.pdf(PDF 527 KB)

10/17/2017 - Solar days to be considered and not man days for determining Service PE under the India-Saudi Arabia tax treaty. In the absence of FTS article under a tax treaty, services are taxable under ‘Other Income’ article - Electrical material Center Co. Ltd v. DDIT [ITA(TP) No. 1104 (Bang)2013, dated 28 September 2017] – Taxsutra.com (PDF 697 KB)

10/17/2017 - Employees’ Provident Fund Organisation issues FAQs on its Inspection Policy - EPFO Circular - http://www.epfindia.com/site_docs/PDFs/Circulars/Y2014-2015/MIS_WebPortal.pdf (PDF 571 KB)

10/16/2017 - DSIR amends guidelines for approval of in-house R&D centres and submission of report under Section 35(2AB) of the Income-tax Act1Not being an article or thing specified in the list of the [Eleventh Schedule] - (PDF 571 KB)

10/12/2017 - While computing a deduction under Chapter VI-A, it is mandatory to consider depreciation – Supreme Court1Plastiblends India Limited v. ACIT (Civil Appeal No. 12828 of 2017) – Taxsutra.com - (PDF 577 KB)

10/12/2017 - Investments made before the date of furnishing belated return of income would be eligible for exemption under section 54 of the Income-tax Act.1Anita Ajay Shad v. ITO (ITA no 3154/Ahd/2015) (Ahd)– Taxsutra.com  - (PDF 577 KB)

10/10/2017 - No ‘transfer’ results for capital gains taxation if joint development agreement is not registered; income cannot be taxed on a hypothetical basis – Supreme Court - 1CIT v. Balbir Singh Maini (Civil Appeal No. 15619 of 2017) – Taxsutra.com  - (PDF 599 KB)

10/09/2017 - Delhi High Court lays down guidelines for reopening of assessment proceedings1 Sabh Infrastructure Ltd v. ACIT (W.P.(C) 1357/2016) – Taxsutra.com  - (PDF 430 KB)

10/07/2017 - Draft rules on Master File and Country by Country reporting released by CBDT1 CBDT Notification F. No. 370142/25/2017-TPL  - (PDF 467 KB)

10/06/2017 - Indian government releases draft guidelines on Country by Country Reporting and Master File for public comments1 CBDT Notification F. No. 370142/25/2017-TPL -  (PDF 481 KB)

10/06/2017 - KPMG India Tax Konnect – October 2017 -  (PDF 465 KB)

10/05/2017 - Penalty is to be levied for default in payment of self-assessment tax while filing original tax return even though the taxpayer has filed a revised return of income and paid the tax - 1Claris Life Sciences Limited v. DCIT (ITA No.498/Ahd/2011) – Taxsutra.com - (PDF 430 KB)

10/05/2017 - The Supreme Court affirms the constitutional validity of dividend distribution tax on composite income of tea companies - 1Union of India v. Tata Tea Co. Ltd. & Anr (CA No. 9178 of 2012) – Taxsutra.com - (PDF 586 KB)

09/28/2017 - Transaction-by-transaction analysis to be considered; Bundled benchmarking approach is neither automatic nor mandate of law; provision for warranty not created on historical trend is allowable as deduction both under normal and MAT provisions1DCIT vs Landis + Gyr Ltd. (ITA No. 584/Kol/2015 and ITA No. 549/Kol/2016), Landis + Gyr Ltd. v. DCIT (ITA No. 687/Kol/2015 and ITA No. 619/Kol/2016) - (PDF 452 KB)

09/26/2017 - Contract receipts cannot be treated as income of a joint venture company since it was a case of diversion of income by overriding title1 Soma TRG Joint Venture v. CIT (ITA No.34/2013, dated 15 September 2017) – Taxsutra.com - (PDF 435 KB)

09/26/2017 - CBDT prescribes procedure for filing statement of income from a country or specified territory outside India and foreign tax credit - 1 CBDT Notification No. 9/2017, dated 19 September 2017 (PDF 310 KB)

09/22/2017 - Share premium amount added to the income of the taxpayer due to failure to prove identity, genuineness and creditworthiness of the investors - 1 Umiya Pipes Pvt. Ltd. v. ACIT (ITA No. 1679/Ahd/2014) - Taxsutra.com - (PDF 411 KB)

09/20/2017 - CBDT draft notification - mechanism proposed for self-reporting of estimation of income and tax liability by companies and person to whom tax audit is applicable  -  1 Draft Notification, dated 19 September 2017 - (PDF 281 KB)

09/19/2017 - Importance of filing Form GST TRAN-1 and precautions to be taken  - (PDF 573 KB)

09/14/2017 - Tax deduction needs to be made in the hands of the legal heir in case of deceased depositor  -  1 Notification No.8/2017 dated 13 September 2017 - (PDF 310 KB)

09/14/2017 - Key decisions by the GST Council to address concerns of trade and industry  -  (PDF 386 KB)

09/13/2017 - Compounding fee paid to the municipal corporation for regularising a building plan is allowable as business deduction under Section 37 of the Income-tax Act –  1Keerthi Estates (P) Ltd v. DCIT (ITA No. 271/Hyd/2016) – Taxsutra.com – (PDF 330 KB)

09/12/2017 - The non-compete fee is not taxable because it is in the nature of capital receipt and it was not a camouflage to avoid payment of tax –  1CIT v. Mrs. Tara Sinha (ITA No. 154/2005) – Taxsutra.com – (PDF 374 KB)

09/12/2017 - Overseas taxes and Medicare would not constitute taxable salary in India –  1Shri Sunil Shinde v. CIT [ITA No 2149 (Bang) 2016] – Taxsutra.com – (PDF 345 KB)

09/11/2017 - TDS provisions are not applicable where the taxpayer has not claimed any expenditure and made suo-motu disallowance under Section 40(a)(ia) of the Income-tax Act –  1Destimoney Enterprises Limited v. ITO(TDS) [ITA NO.4124 & 4125/Mum/2015] -Taxsutra.com – (PDF 331 KB)

09/08/2017 - KPMG India Tax Konnect – September 2017 (PDF 472 KB)

09/06/2017 - Employees’ Provident Fund Organisation issues a circular on settlement of Provident Fund/Pension claims for Japanese expatriates –  1Notification - http://egazette.nic.in/WriteReadData/2012/E_507_2012_020.pdf – (PDF 310 KB)

08/22/2017 - Profits from offshore and onshore services are taxble in India, and it is attributable to the supervisory PE in india –  1Shanghai Electric Group. Co. Ltd. v. DCIT [2017]84 taxmann.com (Del) – (PDF 367 KB)

08/22/2017 - CBDT amends the report on computation of book profits for Ind AS complaint companies –  (PDF 321 KB)

08/22/2017 - Higher rentals received from third party sub-lessees taxable in the hands of the first lessor where the lease is shown to be sham1 Maneklal Agarwal v. Deputy Commissioner of Income-tax [2017]84 taxmann.com 116(SC) (PDF 309 KB)

08/14/2017 - The activity of bottling of LPG is treated as production/manufacture for the purpose of deduction under Section 80-IA of the Income-tax Act - CIT v. Hindustan Petroleum Corporation Ltd (Civil Appeal No. 9295 of 2017) –Taxsutra.com (PDF 344 KB)

08/10/2017 - R&D expenditure incurred prior to DSIR approval are eligible for weighted deduction under Section 35(2AB) of the Income-tax Act - 1 Maruti Suzuki India Ltd v. Union of India & Anr (W.P. (C) 9306/2015, dated 4 August 2017) – Taxsutra.com - (PDF 457 KB)

08/09/2017 - Liaison and project offices do not constitute a PE in India - DIT v. Mitsui & Co. Ltd [2017] 84 taxmann.com 3 (Del) 2 AY 1994-95 and AY 1995-96 (PDF 317 KB)

08/08/2017 - Exemption under Section 11 of the Income-tax Act is not available because the taxpayer’s object and activities cannot be regarded as ‘education’ - ITO v. FRP Institute (ITA No. 1385/Mds/2015) – Taxsutra.com 2 Advancement of any other object of general public utility (PDF 346 KB)

08/04/2017 - India Tax Konnect (PDF 557 KB)

08/03/2017 - Transfer of shares by Mauritian company under the group reorganisation is not taxable in India under the India-Mauritius tax treaty - CIT v. JSH (Mauritius) Ltd. (Writ Petition No. 3070 of 2016) – Taxsutra.com (PDF 339 KB)

08/02/2017 - Employees’ Provident Fund Organisation launches new software for online generation of Certificate of Coverage - EPFO Circular – http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017- 2018/IWU_Application_COC_6057.pdf (PDF 312 KB)

08/01/2017 - Capital gain credited to capital reserve account instead of profit and loss account cannot be considered while computing book profit under the provisions of MAT - Pr.CIT v. Bhagwan Industries Ltd (ITA No. 436 of 2015, 18 July 2017) – itatonline.com (PDF 285 KB)

07/31/2017 - OECD releases Updated Guidance on the Implementation of Country by Country Reporting - OECD Guidance - July 2017 & KPMG Alert on the April 2017 Guidance (PDF 422 KB)

07/31/2017 - Unconnected windmill revenue to be treated as non-operating and forex fluctuation as operating in nature - ACIT v. Rajratna Metal Industries Ltd. [ITA No. 1050/Ahd/2015 with CO No. 91/Ahd/2015, AY: 2010-11] – Taxsutra.com (PDF 317 KB)

07/28/2017 - Location savings is relevant for investigating the transaction, cannot be a sole basis for ALP determination - Parexel International Clinical Research Pvt. Ltd. v. DCIT (IT(TP)A No. 254/Bang/2016 and 292/Bang/2017) – Taxsutra.com (PDF 314 KB)

07/26/2017 - CBDT issues FAQs on computation of book profit for levy of MAT and proposes amendment to Section 115JB of the Income-tax Act (PDF 357 KB)

07/26/2017 - Applicability of time limit for proceedings under Section 201 of the Income-tax Act for non-compliance of TDS provisions - Mass Awash Private Limited v. CIT (Misc. Bench No. 1088 of 2016) – Taxsutra.com (PDF 347 KB)

07/24/2017 - Employees’ Provident Fund Organisation issues fresh circular on the implications of non-filing of online returns by exempted Provident Fund Trusts - EPFO Circular http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017-2018/Exem_OnlineFilingReturn_ExEstt_29052017.pdfAccessed on 24 July 2017 - (PDF 403 KB)

07/21/2017 - Higher tax demand under Section 206AA cannot be raised on account of an incorrect PAN mentioned in the TDS return - Purnima Advertising Agency Pvt Ltd v. DCIT (Special Civil Application No. 18631 of2014) – Taxsutra.com - (PDF 336 KB)

07/21/2017 - Remuneration received in India by non-resident taxpayer for services rendered outside India not taxable in India - Sumana Bandyopadhyay & Anr. v. DDIT (GA 3745 of 2016 with ITAT 374 of 2016) - (PDF 329 KB)

07/20/2017 - CBDT clarifies that tax shall not to be deducted on GST component of services - Circular No. 1/2014, dated 13 January 2014 -  (PDF 250 KB)

07/14/2017 - Disallowance under Section 14A does not apply to computation of MAT - ACIT v. Vireet Investment Pvt Ltd. (ITA No. 502/Del/2012) – Taxsutra.com - (PDF 445 KB)

07/14/2017 - KPMG India Tax Konnect – July 2017 - CIT v. Creative Dyeing & Printing Pvt. Ltd. [2009] 318 ITR 476 (Del) - (PDF 777 KB)

07/14/2017 - CBDT issues a notification prescribing the method for valuation of unquoted shares for the purposes of Section 56(2)(x) and Section 50CA of the Income-tax Act - Source - www.incometaxindia.gov.in - (PDF 299 KB)

07/13/2017 - The Chamber of Tax Consultants challenges the constitutional validity of ICDS - CBDT Notification No.87/2016, dated 29 September 2016 (PDF 333 KB)

07/12/2017 - ‘De Facto’ or ‘De Jure’ participation in the management, capital or control by itself is not relevant in establishing associated enterprise relationship in terms of Section 92A of the Income-tax Act - Pr. CIT v. Veer Gems [In the High Court of Gujarat at Ahmedabad Tax Appeal No. 338 of 2017] (PDF 594 KB)

07/09/2017 - Capital gains arising to Netherlands entity on sale of shares of its Indian subsidiary deriving its value from immovable property is not taxable in India under the India-Netherlands tax treaty - DDIT v. Venenberg Facilities BV (ITTA Nos. 55 and 71 of 2014 and Writ Petition No. 41469 of 2015) – Taxsutra.com (PDF 594 KB)

07/07/2017 - Mauritius signs the Multilateral Convention - Barbados, Belgium, Congo, Croatia, Cyprus, France, Germany, Guernsey, Italy, Kuwait, Kingdom of Lesotho, Luxembourg, Madagascar, Republic of Malta, Monaco, Oman, Qatar, Seychelles, South Africa, Swaziland, Sweden, UAE and the UK. (PDF 416 KB)

07/06/2017 - A foreign company constitutes a service PE in India under the India-UAE tax treaty. Services provided in the form of sharing or permitting to use the special knowledge or expertise falls within the term ‘royalty’ under the tax treaty - ABB FZ-LLC v. DCIT [ITA(TP) No. 1103/Bang/2013] – Taxsutra.com (PDF 379 KB)

07/05/2017 - Employees’ Provident Fund Organisation issues revised Certificate of Coverage application for Indian workers - EPFO Circular http://www.epfindia.com/site_docs/PDFs/Circulars/Y2013- 2014/IWU_COC_Revised_27300.pdf (PDF 379 KB)

06/29/2017 - Disallowance of expenditure under Section 14A read with Rule 8D in relation to exempt income is mandatory irrespective of whether expenditure is incurred or not - Mr. M. A. Alagappan v. ACIT (ITA No.3280/Mds./2016) – Taxsutra.com(PDF 364 KB)

06/28/2017 - India inks Unilateral APA in ITES dealing with severance compensation (PDF 304 KB)

06/23/2017 - Press release on partial relief by the Hon’ble Supreme Court for linking Permanent Account Number with Aadhaar  - ‘Aadhaar number’ means an identification number issued to an individual under Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (the Aadhaar Act) (PDF 424 KB)

06/20/2017 - Multilateral Convention - impact on India vis-à-vis other treaty partners - However, for purposes of clarity, many governments may produce some form of consolidated text as guidance to aid readers. (PDF 379 KB)

06/20/2017 - CBDT notifies rules for the computation mechanism of interest income pursuant to secondary adjustments - KPMG Flash news dated 3 February 2017 - Budget 2017: Transfer Pricing proposals (PDF 282 KB)

06/19/2017 - Rejection of Internal CPM for export to AE by placing importance on various factors relevant for comparability - Inductotherm (India) Pvt Ltd v. DCIT (ITA Nos. 3108/Ahd/2010 AY 2006-07), Inductotherm (India) Pvt Ltd v. JCIT (ITA Nos. 2609/Ahd/2012 AY 2008-09), Inductotherm (India) Pvt Ltd v. DCIT (ITA Nos. 671/Ahd/2014, 243/Ahd/15 and 370/Ahd/16 AY 2009-10, 2010-11 and 2011-12) – Taxsutra.com (PDF 365 KB)

06/16/2017 - CBDT issues a press release and a draft notification on special transitional provisions for a foreign company said to be resident in India on account of POEM - CBDT press release, dated 15 June 2017 – Source: Taxsutra.com (PDF 302 KB)

06/15/2017 - India Tax Konnect (PDF 1121 KB)

06/14/2017 - Issuance of Rupee Denominated Bonds overseas - Revised framework - Dated 7 June 2017 2 In case the subscription to the bonds/redemption of the bonds is in tranches, minimum average maturity period should be 3/5 years as applicable. Source: FAQ No. 6 of FAQs on Issuance of Rupee Denominated Bonds Overseas revised as on June 9, 2017 (PDF 292 KB)

06/09/2017 - India signs the Multilateral Convention - Please find an Annexure providing the list of countries which have either listed ornot listed India under the CTA.(PDF 376 KB)

06/09/2017 - Key changes in the Rules for various procedures under GST (PDF 288 KB)

06/09/2017 - CBDT notifies the much awaited revised Safe Harbour Rules - CBDT Notification No. 46/2017/ F. No. 370142/6/2017-TPL (PDF 340 KB)

06/07/2017 - Payment for ‘standard operating procedure’ amounts to sharing of information concerning industrial, commercial or scientific experience and therefore taxable as royalty under India-Germany tax treaty - Oncology Services India Pvt Ltd v. ADIT (ITA No. 2990/Ahd/2013) (Ahd) – Taxsutra.com (PDF 316 KB)

06/06/2017 - Transfer pricing adjustment on account of marketing intangibles by factoring AMP Intensity in the profit rates of comparables upheld - Luxottica India Eyewear Pvt. Ltd. vs ACIT (ITA No.1492/Del/2015, ITA No.1205/Del/2016 and ITA No.344/Del/2017) – Taxsutra.com (PDF 341 KB)

06/06/2017 - Government authorisation/approvals are not eligible for depreciation. The same has not been treated as goodwill for the purpose of depreciation - Pitney Bowes India (P) Ltd v. DCIT (ITA Nos. 289 to 293/Del/2013) – Taxsutra.com Note – This decision deals with various issues, however, this flash news has been prepared only on the issue of claim of depreciation on government authorisation/approvals and goodwill (PDF 329 KB)

06/06/2017 - Government authorisation/approvals are not eligible for depreciation. The same has not been treated as goodwill for the purpose of depreciation - Pitney Bowes India (P) Ltd v. DCIT (ITA Nos. 289 to 293/Del/2013) – Taxsutra.com Note – This decision deals with various issues, however, this flash news has been prepared only on the issue of claim of depreciation on government authorisation/approvals and goodwill (PDF 330 KB)

06/02/2017 - Exempted establishments have to file online monthly return through new updated software launched by Employees’ Provident Fund Organisation - EPFO Circular http://www.epfindia.com/site_docs/PDFs/Circulars/Y2013- 2014/Exem_OnlineE_Return_27552.pdf (PDF 337 KB)

05/25/2017 - Reimbursement of expenditure pursuant to training and technical agreement is not taxable as FTS as no profit element is embedded in such reimbursement - Gemological Institute International Inc v. DCIT (ITA No. 4659/Mum/2014) and (ITA No. 385/Mum/2016) – Taxsutra.com (PDF 330 KB)

05/25/2017 - OECD releases discussion draft on implementation guidance on approach to Hard-to-Value Intangibles for tax administrations - (PDF 299 KB)

05/22/2017 - India Tax Konnect (PDF 344 KB)

05/22/2017 - Reimbursement of cost from AE (without mark-up) excluded from operating costs while computing arm’s length price. In the absence of a specific plea and supporting documents, Revenue’s general plea dismissed - CIT v. CPA Global Services Private Limited (ITA 266/2017) – Delhi High Court (PDF 317 KB)

05/19/2017 - Cabinet approves signing of the Multilateral Convention to implement tax treaty related measures to prevent Base Erosion and Profit shifting by India (PDF 312 KB)

05/19/2017 - Export commission cannot partake the character of royalty and it cannot be disallowed under Section 40(a)(i) of the Income-tax Act - CIT v. Hero Motocorp Limited (ITA 923/2015) (Delhi High Court) (PDF 352 KB)

05/17/2017 - Income from the sub-licensing of property is taxable as house property income and not business income - Raj Dadarkar and Associates v. ACIT (Civil Appeal No. 6455-6460 OF 2017) (SC) – Taxsutra.com(PDF 369 KB)

05/16/2017 - Unrealised foreign exchange loss on loan obtained for indigenous purchase of assets is ‘revenue loss’ and therefore allowed as deduction under Section 37(1) of the Income-tax Act - Hyundai Motor India Limited v. DCIT (ITA No. 853/Chny/2014 and 563/Chny/2015) – Taxsutra.com (PDF 323 KB)

05/16/2017 - Deemed brand development is not a separate international transaction - Hyundai Motor India Limited v. DCIT (ITA No. 853/Chny/2014 and 563/Chny/2015) (PDF 358 KB)

05/16/2017 - Intern visa – Detailed guidelines issued by the Government of India (PDF 305 KB)

05/15/2017 - Aadhaar number not mandatory for foreign national and nonresident for PAN and Income-tax return - "Aadhaar number” means an identification number issued to an individual under Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (the Aadhaar Act) (PDF 312 KB)

05/15/2017 - CBDT issues draft ICDS on real estate transactions (PDF 373 KB)

05/12/2017 - The process of matching of Input Tax Credit (ITC) under GST (PDF 302 KB)

05/11/2017 - Expenditure is to be disallowed under Section 14A in relation to dividend income which is subject to dividend distribution tax – Supreme Court - Godrej & Boyce Manufacturing Company Limited v. DCIT (Civil Appeal No. 7020 of 2011) – Taxsutra.com (PDF 455 KB)

05/09/2017 - OECD - BEPS Action 13 - Guidance on the Implementation of Country by Country Reporting - OECD Guidance on the Implementation of CbC Reporting dated April 2017 (PDF 247 KB)

05/09/2017 - Levy of penalty for non-filing of Form 3CEB for share investment transaction, upheld - BNT Global Pvt. Ltd. [ITA No. 4111/Mum/2016] (PDF 319 KB)

05/07/2017 - CBDT issues press release and draft notification prescribing the method for valuation of unquoted equity shares for the purposes of Section 56(2)(x) and Section 50CA of the Incometax Act (PDF 279 KB)

05/05/2017 - Issue decided by the jurisdictional High Court does not remain as ‘debatable issue’ and therefore adjustment under Section 143(1)(a) of the Income-tax Act is permissible in that jurisdiction – Supreme Court - DCIT v. Raghuvir Synthetics Ltd (Civil Appel No. 2315/2007) – Supreme Court – Taxsutra.com(PDF 476 KB)

05/05/2017 - Disallowance under Section 40(a)(ia) of the Income-tax Act can be made even for the amount paid during the year – Supreme Court - Palam Gas Service v. CIT (Civil Appeal No. 5512 of 2017C) – Taxsutra.com (PDF 501 KB)

05/04/2017 - CBDT releases first APA Annual Report (PDF 288 KB)

05/02/2017 - The provisions of mandatory filing of tax return before the due date to claim benefit under Section 10B of the Income-tax Act are constitutionally valid - Nath Brothers Exim International Ltd v. Union of India & Anr. (W.P.(C) 12073/2015) – Taxsutra.com (PDF 338 KB)

05/02/2017 - Quasi capital transaction, not an interest simplictor and notional interest adjustment deleted - Cadila Healthcare Limited v. ACIT [2017] 80 taxmann.com 24 (Ahd) 2 Micro Ink Ltd v. ACIT (2016) 157 ITD 0132 (Ahd) (PDF 381 KB)

05/02/2017 - Taxation Laws (Amendment) Bill, 2017 abolishes cesses levied under the current regime and provides for IGST on import of goods (PDF 298 KB)

04/28/2017 - Government of India declares 8.65 per cent interest rate on Employees’ Provident Funds Scheme - http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017- 2018/RateOfInterest_1617_906.pdf (PDF 311 KB)

04/28/2017 - International circuit for Formula One championship constitutes a fixed place PE under the India-U.K. tax treaty - Formula One World Championship Ltd v. CIT (Civil Appeal No. 3849 of 2017) – Taxsutra.com (PDF 442 KB)

04/27/2017 - T40 per cent of the global profit to Indian PE is attributed based on the functions performed, assets deployed and risk assumed - Arrow Electronics India Ltd v. ADIT [I.T (TP).A Nos.209 & 210/Bang/2011] - AY 2000-01 & AY 2001-02 and ADIT v. Arrow Electronics India Ltd [I.T (TP).A Nos.617 to 619/Bang/2011 & 31- 33/Bang/2011 AY 2002-03, 2003-04 & 2004-05] (PDF 421 KB)

04/24/2017 - No income tax on salary recovered for not serving notice period - Nandinho Rebello v. DCIT (ITA No. 2378/Ahd/2013) (PDF 590 KB)

04/20/2017 - Sale of business on a 'going concern' basis is a 'slump sale' and not a sale of depreciable asset under Section 50(2) of the Income-tax Act – Supreme Court - CIT v. Equinox Solution Pvt. Ltd. (Civil Appeal No. 4399 OF 2007) – Taxsutra.com (PDF 365 KB)

04/19/2017 - Waiver of interest in the hands of amalgamating company needs to be set off against the accumulated losses in the hands of amalgamated company – Supreme Court - Mcdowell & Company Ltd. v. CIT (Civil Appeal No. 3893 of 2006) – Taxsutra.com (PDF 309 KB)

04/19/2017 - Income of a foreign shipping company is not taxable in India as place of effective management is outside India - Pearl Logistics and EX-IM Corporation v. ITO [2017-TII-57-ITATRAJKOT- INTL] – Taxindiainternational.com (PDF 410 KB)

04/17/2017 - Government still needs to notify key aspects under the GST Acts (PDF 556 KB)

04/17/2017 - Government makes rules relating to merger or amalgamation of a foreign company with an Indian company and vice versa - Notification dated 13 April 2017 (To be published in the Gazette of India) (PDF 542 KB)

04/13/2017 - India Tax Konnect (PDF 267 KB)

04/12/2017 - Disallowance under Section 14A of the Income-tax Act is applicable to shares held as stock-in-trade - Kalyani Barter (P) Ltd. v. ITO (ITA No. 681/Kol/2015) – Taxsutra.com (PDF 365 KB)

04/11/2017 - Income-tax deducted outside India cannot be allowed as deduction under Section 37(1) of the Income-tax Act - DCIT v. Elitecore Technologies Private Limited (ITA No. 508/Ahd/2016) – Taxsutra.com (PDF 370 KB)

04/10/2017 - Tax credit can be claimed in respect of taxes deducted in the U.S.; restricted to rates prescribed in the India-USA tax treaty - Bhavin A Shah v. ACIT (ITA No. 933/Ahd/2013) – Taxsutra.com (PDF 365 KB)

04/6/2017 - Draft GST Rules for various procedures released (PDF 312 KB)

04/6/2017 - Mandatory quoting of Aadhaar number for PAN applications and filing return of income - ‘Aadhaar number’ means an identification number issued to an individual under Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (the Aadhaar Act) (PDF 264 KB)

04/05/2017 - Claim for exemption in respect of House Rent Allowance rejected where rent paid by married daughter to her mother - Under Section 10(13A) of the Act 2 Minimum of actual HRA received; 50 percent of salary for those living in metro cities (40 percent for non-metros); actual rent paid less 10 percent of salary. 'Salary' for this purpose includes basic salary, dearness allowance, and commission based on a fixed percentage of turnover achieved by an employee as per terms of the contract of employment but excludes all other allowances and perquisites (PDF 339 KB)

04/5/2017 - Transfer Pricing Adjustment in relation to intra-group services deleted in the absence of justification of Nil ALP under CUP method - SABIC Innovative Plastics India Private Limited vs ACIT (ITA No. 1125/Ahd/2014 - Assessment Year 2009-10 and IT(TP) No. 427/Ahd/16 - Assessment Year 2011-12) (PDF 313 KB)

04/5/2017 - Under India-Italy tax treaty, tax is to be deducted on actual payment of royalty - Saira Asia Interiors (P.) Ltd v. ITO [2017] 79 taxmann.com 460 (Ahd) (PDF 312 KB)

04/5/2017 - Tax Assemblage 2016 (PDF 727 KB)

04/04/2017 - CBDT issues press release and draft notification for exemption of acquisitions of equity shares from long-term capital gain tax - Source - www.incometaxindia.gov.in (PDF 287 KB)

04/04/2017 - CBDT notifies rules and form with respect to the patent box regime under Section 115BBF of the Income-tax Act - Plus applicable surcharge and cess 2 CBDT Notification No. 25/2017, 3 April 2017 (PDF 262 KB)

04/03/2017 - CBDT notifies new income-tax return forms for Assessment Year 2017-18 - Notification No. 21/2017, dated 30 March 2017 (PDF 288 KB)

03/31/2017 - Amortisation of certain preliminary expenses cannot be claimed on the basis of share premium since it is not capital employed in the business of the company - Supreme Court - Berger Paints India Ltd. v. CIT [2017] 79 taxmann.com 450 (SC) (PDF 318 KB)

03/30/2017 - India signs five unilateral APAs on management cross charges (PDF 266 KB)

03/30/2017 - Payment for advertising and publicity, with or without the use of marks, identification or logo of non-resident entity is not taxable as royalty or FTS under the Income-tax Act - Reebok India Company v. DCIT (ITA No. 954/Del/2016) – Taxsutra.com Note – This decision deals with various other issues. However, this flash news only deals with royalty and FTS related issue. (PDF 348 KB)

03/30/2017 - Payment for advertising and publicity, with or without the use of marks, identification or logo of non-resident entity is not taxable as royalty or FTS under the Income-tax Act - Reebok India Company v. DCIT (ITA No. 954/Del/2016) – Taxsutra.com Note – This decision deals with various other issues. However, this flash news only deals with royalty and FTS related issue. (PDF 347 KB)

03/30/2017 - The Government of India extends the time line of Employees’ Enrolment Campaign, 2017 till 30 June 2017 under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 - The Gazette of India (PDF 326 KB)

03/27/2017 - Since lessee is not the owner of the asset, depreciation is not allowed in the hands of lessee – Supreme Court - Mother Hospital Pvt. Ltd. v. CIT (Civil Appeal No. 3360 of 2006) (Supreme Court) – www.itatonline.org (PDF 332 KB)

03/27/2017 - Government issues guidelines for waiver of interest charged for default in deduction and payment of tax under the Incometax Act - Circular No. 11/2017, dated 24 March 2017 (PDF 299 KB)

03/27/2017 - Government issues guidelines for waiver of interest charged for default in deduction and payment of tax under the Incometax Act - Circular No. 11/2017, dated 24 March 2017 (PDF 305 KB)

03/27/2017 - Government issues guidelines for waiver of interest charged for default in deduction and payment of tax under the Incometax Act - Circular No. 11/2017, dated 24 March 2017 (PDF 305 KB)

03/24/2017 - CBDT issues FAQs on Income Computation and Disclosure Standards - Notification No. S.O. 892(E), dated 31 March 2015 (PDF 343 KB)

03/22/2017 - Proposed amendments to the Finance Bill, 2017 - The amended Finance Bill 2017 has been passed by Lok Sabha today. The proposed amendments to the Bill will become law only after it receives the assent of the President of India (PDF 333 KB)

03/21/2017 - The Government of India issues notification on reducing the administrative charges under Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (PDF 399 KB)

03/20/2017 - Long term capital loss on off-market sale of listed shares is allowed to be set-off against long term capital gain on sale of unlisted shares - Asara Sales and Investments Private Limited v. ITO (ITA No. 1345/Pun/2014) – Taxsutra.com (PDF 258 KB)

03/20/2017 - India and Brazil sign Social Security Agreement - http://mea.gov.in/press-releases.htm?dtl/28182/Social_Security_ Agreement_between_India_and_Brazil (PDF 258 KB)

03/20/2017 - KPMG in India releases report on employee pensions in India at FICCI’s conference on pension sector - Knowledge paper: Employee pensions in India – Moving towards a pensioned society (PDF 329 KB)

03/15/2017 - Sales to two customers which constitutes more than 20 per cent of total sales of the taxpayer shall constitute 'dominant influence'; AE relationship upheld - Hospira Healthcare India Private Limited v. DCIT (ITA No. 821/Mds/2016 - AY 2011-12) (PDF 365 KB)

03/15/2017 - Where tax is deducted on the basis of a tax treaty, higher tax rate under Section 206AA of the Income-tax Act cannot apply - Uniphos Environtronic (P.) Ltd. v. DCIT [2017] 79 taxmann.com 75 (Ahd) (PDF 340 KB)

03/14/2017 - Penalty for concealment of income is to be deleted even though adjustment made by the TPO is accepted by the taxpayer - Pr.CIT v. Mitsui Prime Advanced Composites India Pvt. Ltd. (ITA 913/2016, CM APPL.46519/2016) – Delhi High Court (PDF 365 KB)

03/09/2017 - Retention money cannot be regarded as income till the contractual obligation is fulfilled. Therefore, it cannot be regarded as income for computing MAT - DCIT v. Mcnally Bharat Engg.Co.Ltd (ITA No. 100/Kol/2011) – Taxsutra.com (PDF 349 KB)

03/09/2017 - Payments to foreign entities are not taxable as fees for technical services in view of MFN clause under India-Belgium tax treaty - ITO v . Cadila Health Care Ltd [2017] 78 taxmann.com 330 (Ahm) (PDF 365 KB)

03/08/2017 - Payments for global telecommunication facility by Indian agents are in the nature of reimbursement and not fees for technical services (PDF 334 KB)

03/08/2017 - Foreign Direct Investment in Limited Liability Partnership – Revised guidelines - Press Note No. 12, dated 24 November 2015 (PDF 337 KB)

03/07/2017 - CGST Bill and IGST Bill receives final nod from the GST Council; the Council to meet on 16 March 2017 to discuss SGST Bill and UTGST Bill (PDF 283 KB)

03/07/2017 - India Tax Konnect (PDF 340 KB)

03/06/2017 - Capital surplus on account of waiver of loan is neither taxable nor can be included in computation of book profit under the provisions of MAT - JSW Steel Limited v. ACIT (ITA No. 923/Bang/2009) – Taxsutra.com (PDF 353 KB)

03/03/2017 - India’s Social Security Agreement with Portugal to come into effect from 8 May 2017 (PDF 326 KB)

03/03/2017 - OECD releases Economic Survey of India (PDF 306 KB)

03/01/2017 - Liaison office of overseas group entity constitutes fixed place PE and Indian subsidiary constitutes agency PE under the India-USA tax treaty - GE Energy Parts Inc. v. ADIT (ITA No. 671/Del/2011) – Taxsutra.com Note – There are various other issues dealt by the Delhi Tribunal in this decision. However, we have prepared flash news only on the issues with respect to fixed place PE, agency PE and attribution of profits. (PDF 358 KB)

02/24/2017 - Even in the absence of a PAN, lower tax rate prescribed under the tax treaty will apply - Nagarjuna Fertlizers and Chemicals Limited v. ACIT (ITA No. 1187/H/2014 AY:2011-2012) Hyderabad– Taxsutra.com (PDF 323 KB)

02/23/2017 - By applying Rule 10 of the Income-tax Rules, 30 per cent of profits have been attributed to branch for conducting marketing activities relatable to direct sales made by head office in India - DDIT v. Nipror Asia Pte Ltd. (ITA No. 4078/Del/2013 order dated 16 February 2017) – Taxsutra.com (PDF 347 KB)

02/23/2017 - Resale Price Method considered as most appropriate method for distributors engaged in buying and reselling of goods without any value addition to such goods - Swarovski India Private Limited v. ACIT (ITA No. 5621/Del/2014 - Assessment Year 2004-05) and (ITA No. 5622/Del/2014 - Assessment Year 2005-06) (PDF 326 KB)

02/22/2017 - Government notifies protocol to the India-Israel tax treaty - Notification No. 10/2017 F. No. 500/14/2004-FTD-II(PDF 349 KB)

02/22/2017 - TecGST Compensation Bill receives final nod from the GST Council; the Council to meet on 4-5 March 2017 to discuss GST laws (PDF 280 KB)

02/20/2017 - Technology services provided in the form of data centre, infrastructure, connectivity and application technology are neither taxable as royalty nor as fees for technical services under the Income-tax Act - Atos Information Technology HK Ltd. v. DCIT (ITA No. 237,238,239 &240/MUM/2016) – Taxsutra.com (PDF 387 KB)

02/17/2017 - Since the securities are held as stock-in-trade, no disallowance of expenditure is to be made under Section 14A of the Incometax Act - Pr. CIT v. State Bank of Patiala (ITA No.244 of 2016) (P&H) – Taxsutra.com (PDF 337 KB)

02/17/2017 - Since the securities are held as stock-in-trade, no disallowance of expenditure is to be made under Section 14A of the Incometax Act - Pr. CIT v. State Bank of Patiala (ITA No.244 of 2016) (P&H) – Taxsutra.com (PDF 338 KB)

02/16/2017 - If a tax officer finds the claim of expenditure incurred in relation to exempt income is incorrect, Rule 8D can be invoked even if the incorrect claim or disallowable expenditure is not quantified - Punjab Tractors Ltd. v. CIT [Income Tax Appeal No.458 of 2015 (O&M), Dated 3 February 2017 – taxsutra.com] (PDF 391 KB)

02/15/2017 - Indian subsidiary of group holding company of Netherland entity does not constitute permanent establishment in India - NetApp B. V. v. DDIT (ITA No. 4781/Del/2013) – Taxsutra.com 2 It does not constitute Fixed Place PE, Subsidiary PE and Agency PE (PDF 351 KB)

02/15/2017 - India Tax Konnect (PDF 349 KB)

02/13/2017 - Payment for international private leased circuit and connectivity charges for use of private bandwidth in underwater sea cable are not taxable as royalty or FTS - Geo Connect Ltd. v. DCIT (ITA Nos. 1927/Del/2008 & 127/Del/2011) – Taxsutra.com (PDF 372 KB)

02/13/2017 - Provident Fund Office directs its field offices to expedite exemption applications under Employees’ Deposit-Linked Insurance Scheme, 1976 (PDF 329 KB)

02/03/2017 - Budget 2017: Transfer Pricing proposals (PDF 324 KB)

02/01/2017 - Surcharge and education cess cannot be levied on the tax deducted at source based on Section 206AA of the Act - Computer Sciences Corporation India (P.) Ltd. v. ITO [2017] 77 taxmann.com 306 (Del). The Tribunal desisted from considering as to what should rightly have been the correct rate of tax as per clause (i) of Section 206AA(1) or the overall rate as applicable under Section 206AA, as such issues were not before it.(PDF 385 KB)

01/31/2017 - India Economic Survey 2016-17- Key highlights (PDF 526 KB)

01/30/2017 - Section 206AA of the Income-tax Act cannot override the beneficial provisions of a tax treaty - Quick Flight Ltd. v. ITO (ITA No. 1204/Ahd/2014) – www.taxindiainternational.com (PDF 375 KB)

01/28/2017 - CBDT clarifications on implementation of General Anti- Avoidance Rules under the Income-tax Act - Assessment Year (AY) 2018-19 (PDF 306 KB)

01/25/2017 - Writ petition is maintainable against initiation of reassessment proceedings – Supreme Court - Jeans Knit Private Limited v. DCIT (Civil Appeal No 11189/2016) along with a batch of appeals - taxsutra.com (PDF 370 KB)

01/24/2017 - CBDT issues guiding principles for determination of the Place of Effective Management of a company - By Finance Act, 2015 (PDF 312 KB)

01/24/2017 - CBDT issues guiding principles for determination of the Place of Effective Management of a company - By Finance Act, 2015 (PDF 312 KB)

01/24/2017 - Supreme Court grants immunity from prosecution on payment of the sum specified in the settlement order, even after the time granted by the Settlement Commission - Section 245H(1A) of the Act (PDF 325 KB)

01/20/2017 - AExpenditure on Freebies are allowed as Business expenditure since MCI Regulations are not applicable to Pharma Companies - DCIT v. PHL Pharma P Ltd. (ITA No. 4605/Mum/2014) order dated 12 January 2017 – Taxsutra.com (PDF 336 KB)

01/19/2017 - Amendments to the Modified Special Incentive Package Scheme - Cabinet approves amendment in Modified Special Incentive Package Scheme; Press Information Bureau; (PDF 295 KB)

01/19/2017 - Amendments to the Modified Special Incentive Package Scheme - Cabinet approves amendment in Modified Special Incentive Package Scheme; Press Information Bureau; (PDF 295 KB)

01/19/2017 - CBDT issues FAQs on the taxation and investment regime for Pradhan Mantri Garib Kalyan Yojana, 2016 - CBDT Circular No. 2/2017, dated 18 January 2016 (PDF 303 KB)

01/19/2017 - Consistent loss making companies cannot be rejected unless functional profile is different; allows comparability adjustments including capacity adjustment, volume adjustment and warranty cost adjustment - Erhardt+Leimer (India) Private Limited v. ACIT (ITA Nos. 3298/Ahd/2011 & 2880/Ahd/2012 - Assessment Years: 2007-08 & 2008-09)(PDF 414 KB)

01/19/2017 - ‘De Facto’ or ‘De Jure’ participation in the management, capital or control by itself is not relevant in establishing associated enterprise relationship in terms of Section 92A of the Income-tax Act - ACIT v. Veer Gems (ITA No. 1514/Ahd/2012 - AY 2008-09); Veer Gems v. ACIT (C.O. No. 184/Ahd/2012 - AY 2008-09) (PDF 414 KB)

01/18/2017 - GST Council takes key decisions on contentious issues of dual control and effective date of implementation (PDF 316 KB)

01/17/2017 - Dismantling and seaworthy packing of machinery is ‘contract of work’ and not ‘contract of service’ and therefore such services are not taxable as fees for technical services - ITO v. Emami Paper Mils Ltd. ((ITA No.642/Kol /2016) - www.Itatonline.org (PDF 375 KB)

01/17/2017 - Dismantling and seaworthy packing of machinery is ‘contract of work’ and not ‘contract of service’ and therefore such services are not taxable as fees for technical services - ITO v. Emami Paper Mils Ltd. ((ITA No.642/Kol /2016) - www.Itatonline.org (PDF 376 KB)

01/17/2017 - Export commission is not taxable in India in the absence of specific FTS article in the respective tax treaties - DCIT v. Welspun Corporation Limited (ITA No. 48/Rjt/2015) – Taxsutra.com This decision also deals with several other issues. However, this flash news has been prepared on the issue of taxability of export commission only. (PDF 379 KB)

01/17/2017 - Validity of penalty proceedings under Section 271(1)(c) of the Income-tax Act - Sri Nilaya AR Projects v. ITO (ITA No. 1572/Hyd/2013) – www.itatonline.org (PDF 368 KB)

01/16/2017 - Tax sparing credit is allowed on the interest income under the India-Cyprus tax treaty. Payment for clinical trials is not taxable as FTS under the India- USA tax treaty. Post-merger, weighted deduction on scientific research expenditure is allowed to the merged entity - Dr. Reddy's Laboratories Ltd. v. ACIT [ITA Nos.2229/Hyd/2011, 85/Hyd/2013 - Assessment Years: 2007-08 & 2008-09] – Taxsutra.com. In the present case, the Tribunal has given decision on (PDF 316 KB)

01/13/2017 - CBDT notification – amendment to rules with respect PAN and reporting of cash transaction - Notification No. 104/2016, dated 15 November 2016 (PDF 328 KB)

01/13/2017 - CBDT notification – amendment to rules with respect PAN and reporting of cash transaction - Notification No. 104/2016, dated 15 November 2016 (PDF 325 KB)

01/13/2017 - Foreign tax credit allowed on the basis of ‘gross receipts’ - Elitecore Technologies Private Limited v. DCIT (ITA No.623/Ahd/2015) – Taxsutra.com (PDF 322 KB)

01/10/2017 - India Tax Konnect (PDF 268 KB)

01/09/2017 - Claim of depreciation on goodwill is allowed without filing revised return of income - Zydus Wellness Ltd. v. DCIT (OSD) [TS-679-ITAT-2016(Ahd)] - Taxsutra.com (PDF 330 KB)

01/06/2017 - Extension of deadline for conversion of Person of Indian Origin (PIO) card into Overseas Citizen of India (OCI) card - For our earlier flash news, refer link 2 MEA press release dated 20 June 2016 3 mha.nic.in (PDF 206 KB)

01/06/2017 - Extension of deadline for conversion of Person of Indian Origin (PIO) card into Overseas Citizen of India (OCI) card - For our earlier flash news, refer link 2 MEA press release dated 20 June 2016 3 mha.nic.in (PDF 204 KB)

01/06/2017 - Salary received by a non-resident for services rendered abroad accrues outside India. Not chargeable to tax in India - Section 5,6 and 9 of the Act (PDF 215 KB)

01/05/2017 - Employees’ Provident Fund Organisation issues FAQs on Employees’ Enrolment Campaign, 2017 (PDF 313 KB)

01/03/2017 - Employees’ Enrolment Campaign, 2017 starts from 1 January 2017 to 31 March 2017 under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (PDF 333 KB)

01/02/2017 - India signs the third Protocol with Singapore to amend India-Singapore tax treaty - Protocol to the India-Singapore tax treaty –Taxsutra.com (PDF 283 KB)

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