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.

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)

12/22/2016 - CBDT Circular - FAQs on indirect transfer related provisions under the Income-tax Act - CBDT Circular No. 41/2016 – Taxsutra.com (PDF 333 KB)

12/22/2016 - CBDT explains the benefit of the reduction of deemed profit rate under Section 44AD of the Income-tax Act to taxpayers who will accept digital payments - CBDT Press Release dated 19 December 2016 (PDF 298 KB)

12/21/2016 - Interest under Sections 234B and 234C not payable by employee for the employer’s failure to withhold taxes - Ian Peters Morris v. ACIT (Civil Appeal No. 11385-11386 of 2016) – Taxsutra.com (PDF 371 KB)

12/21/2016 - Relief proposed for late enrolments and delayed contributions under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (PDF 353 KB)

12/20/2016 - Section 10A being a deduction provision, the gross total income of the eligible undertaking should be computed before the aggregation of income and the provisions for set-off and carry forward - Supreme Court - CIT v. Yokogawa India Ltd. [Civil Appeal No. 8498 OF 2013 and others] – Taxsutra.com (PDF 382 KB)

12/20/2016 - Intra-group services may be rendered orally and would not necessarily be recorded in writing -CIT v. Max India Limited [ITA No.186 of 2013 (O&M)] - Punjab & Haryana High Court - Assessment Year 2002-03 (PDF 372 KB)

12/20/2016 - CBDT issues press release to reduce deemed profit rate for eligible business under Section 44AD of the Income-tax Act who will accept payments through digital mode - CBDT press release, dated 19 December 2016 (PDF 315 KB)

12/20/2016 - CBDT notification - schemes with respect to declaration of undisclosed income pursuant to demonetisation - Notification No. 115/2016, F.No.142/33/2016-TPL, Notification No. 116/2016, F.No.142/33/2016-TPL, Notification No. 117/2016, F.No.142/33/2016-TPL, CBDT Press Release 16 December 2016 (PDF 324 KB)

12/19/2016 - Subvention receipt from the parent company to recoup losses of the subsidiary is not taxable as revenue receipt – Supreme Court - Siemens Public Communication Networks Ltd. v. CIT (SLP No. 6946/2014)– Taxsutra.com(PDF 449 KB)

12/19/2016 - Benefit of restricted scope of FTS provided under India-Portuguese tax treaty cannot apply automatically to India-Switzerland tax treaty - ITO v. Torrent Pharmaceuticals Ltd (ITA No. 624/Ahd/2012C) – Taxsutra.com- (PDF 447 KB)

12/16/2016 - Rules relating to compromises, arrangements, amalgamations and capital reduction notified - Notification No. G.S.R. 1134(E) dated 14 December 2016 issued by the Ministry of Corporate Affairs, Government of India - (PDF 359 KB)

12/16/2016 - Rules relating to compromises, arrangements, amalgamations and capital reduction notified - Notification No. G.S.R. 1134(E) dated 14 December 2016 issued by the Ministry of Corporate Affairs, Government of India - (PDF 359 KB)

12/16/2016 - Foreign exchange gain realised on project receipts remained blocked for 11 years to be considered as capital receipt - CIT v. SDB Infrastructure Private Limited ITA No. 233 of 2009 (Cal); - Taxsutra.com (PDF 325 KB)

12/15/2016 - If capital gains are not chargeable under Section 45 of the Income-tax Act, the same cannot be taxed under Section 47A. The question raised by the non-resident applicant before AAR may not relate to the tax liability of a non-resident - CIT v. Umicore Finance, Writ Petition No.510 of 2010 (Bom) – Taxsutra.com(PDF 336 KB)

12/15/2016 - Formula one championship circuit constitutes a fixed place of business/PE in India under the India-U.K. tax treaty - Formula One World Championship Limited v. CIT [W.P.(C) 10307/2016, C.M. APPL.40563/2016 & 40564/2016], CIT v. Formula One World Championship Limited [W.P.(C) 9509/2016, C.M. APPL.38021/2016, 41063/2016, 41235/2016 & 41236/2016], Jaiprakash Associates Ltd. v. CIT [W.P.(C) 10145/2016, C.M. APPL.40169/2016] – Taxsutra.com (PDF 333 KB)

12/13/2016 - CBDT prescribes a procedure for furnishing and verification of Form 26A/27BA for removing default on account of short deduction/collection or non-deduction/collection of tax at source (PDF 283 KB)

12/12/2016 - Exclusion of defunct or superfluous assets in a slump sale is a commercial decision. Therefore, the taxpayer is entitled to 20 per cent tax rate under Section 50B of the Income-tax Act - Triune Projects Private Limited v. DCIT [ITA No.448//2016 CM. APPL.26426/]– taxsutra.com(PDF 335 KB)

12/09/2016 - CBDT Notification - Prescribing rules and forms for furnishing of statement regarding income distribution by securitisation trust - CBDT Notification No. 107/2016, dated 28 November 2016(PDF 294 KB)

12/07/2016 - Key highlights of the revised tax treaty between India and CypruS - Notification No. 86/2013, dated 1 November 2013(PDF 323 KB)

12/06/2016 - Determination of consideration in case of sale at less than stamp duty value and for computing exemption from capital gains tax - Section 50C of the Act (PDF 345 KB)

12/06/2016 - India Tax Konnect (PDF 343 KB)

11/30/2016 - Depreciation on the inflated value of an intangible asset is disallowed by invoking Explanation 3 to Section 43(1) of the Income-tax Act dealing with ‘actual cost’ - Sanyo BPL Pvt. Ltd. v. DCIT (ITA No. 1395/Bang/2014) – Taxsutra.com(PDF 338 KB)

11/28/2016 - Government introduces the Taxation Laws (Second Amendment) Bill 2016 in respect of demonetisation. Also introduces Pradhan Mantri Garib Kalyan Yojana 2016 - Section 68, 69, 69A, 69B, 69C, 69D of the Act.(PDF 290 KB)

11/28/2016 - Government introduces the Taxation Laws (Second Amendment) Bill 2016 in respect of demonetisation. Also introduces Pradhan Mantri Garib Kalyan Yojana 2016 - Section 68, 69, 69A, 69B, 69C, 69D of the Act.(PDF 292 KB)

11/23/2016 - CBDT Notification – Amendment to rules with respect to business connection of offshore funds - Section 9A has been introduced by the Finance Act, 2015 with effect from 1 April 2016 (PDF 310 KB)

11/22/2016 - No capital gains on transfer under the scheme of demerger, in absence of consideration the computation mechanism fails - Aditya Birla Telecom Limited v. DCIT (ITA No.341/Mum/2014) - Taxsutra.com (PDF 347 KB)

11/21/2016 -Taxpayer’s contractual obligation to make payment cannot ipso facto absolve such payment or taxpayer from primary duty of demonstrating the arm’s length behaviour - Magneti Marelli Powertrain India Pvt. Ltd. v. DCIT - Delhi High Court (ITA 350/2014) – Taxsutra.com (PDF 342 KB)

11/18/2016 -India – USA competent authorities resolve more than 100 cases under MAP and agree on terms and conditions of first Indo-US Bilateral APA (PDF 349 KB)

11/17/2016 -Since the claim relating to provision of commission payment is not ascertainable, it is not an allowable expenditure - Hardik Jigishbhai Desai v. DCIT [ITA No.1084/Ahd/2013] – Orange.taxsutra.com (PDF 338 KB)

11/17/2016 - CBDT Notification – Amendment to rules with respect to furnishing of documents pertaining to the transactions wherein PAN is to be quoted and furnishing of statement of financial transaction - (PDF 325 KB)

11/16/2016 - Government of India issues a notification for changing the regulation of Inoperative Accounts under the Employees’ Provident Funds Scheme, 1952 - Notification No. G.S.R. 1065 (E), dated 11 November, 2016, published in the Gazette of India (PDF 391 KB)

11/16/2016 - The transfer of computer software by an Indian branch to a foreign head office is considered as export and eligible for benefit under Section 10A - DDIT v. Virage Logic International (ITA 1108/2007, ITA 1249/2009, ITA 173/2016) – Taxustra.com (PDF 338 KB)

11/15/2016 - CBDT Notification – Rules amended to restrict depreciation rate at 40 per cent - Notification No. 103/2016, dated 7 November 2016 (PDF 338 KB)

11/15/2016 - Since R&D facility is approved by DSIR and the taxpayer has complied with the prescribed rules, the AO is bound to allow weighted deduction under Section 35(2AB) of the Income-tax Act - Efftronics Systems Pvt. Ltd v. ACIT [ITA No.188/Vizag/2015] – Taxsutra.com (PDF 338 KB)

11/08/2016 - Indian subsidiary represented by its managing director constitutes a fixed place PE in India - Carpi Tech SA v. ADIT (ITA No 1742/Mds/2011) -Taxsutra.com (PDF 338 KB)

11/07/2016 - India Tax Konnect (PDF 405 KB)

11/07/2016 - Nepalese and Bhutanese national will be treated as Indian workers under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 - Notification No. G.S.R. 1035 (E) and Notification No. G.S.R. 1036 (E), dated 2 November, 2016, published in the Gazette of India(PDF 346 KB)

11/04/2016 - CBEC notifies guidelines and procedure for deferred payment of customs duty (PDF 280 KB)

11/03/2016 - CBDT clarifies that deduction under Chapter VI-A is admissible on profits enhanced by way of disallowance - CBDT Circular No. 37/2016, dated 2 November 2016 (PDF 273 KB)

11/01/2016 - Completion certificate from a government authority is not required for claiming losses on house property - Section 24(b) of the Act Sudhakar S Mody v. ACIT (ITA No. 1174/Mum/2014) – Taxsutra.com(PDF 338KB)

10/28/2016 - Brand name acquired before amalgamation is eligible for depreciation - DCIT v. Emerald Jewel Industry India Ltd. (ITA No. 1811/Mds/2015) – Taxsutra.com (PDF 330 KB)

10/28/2016 - Transfer of Jurisdiction is not valid in absence of agreement of the jurisdictional authorities – Supreme Court - Noorul Islam Educational Trust v. CIT (Civil Appeal No 13968/2015)- taxsutra.com(PDF 327 KB)

10/19/2016 - Under Section 143(1D) of the Income-tax Act, the tax officer is ought to apply his mind and grant a refund, if any,expeditiously - Writ Petition No. 2067 OF 2016 – Bombay High Court -bombayhighcourt.nic.in (PDF 353 KB)

10/18/2016 - Concluded APA has a considerable bearing on characterisation of prior years’ international transactions - Lotus Footwear Enterprises Ltd (India Branch) v. DCIT (ITA.Nos.779/Mds/ 2014, 801/Mds/2015 & 810/Mds/2016) (PDF 331 KB)

10/18/2016 - CBDT notifies final rules with respect to buy-back of shares - CBDT Notification No. 94/2016, dated 17 October 2016 (PDF 304 KB)

10/18/2016 - Transfer pricing provisions do not apply in respect of transactions between the Indian head office and its overseas branch office - Aithent Technologies Private Limited v. DCIT (ITA No.6446/Del/2012 - Assessment Year : 2008-09) (PDF 316 KB)

10/17/2016 - In absence of registration of agreement as well as possession being handed over, there is no transfer under Section 2(47)(v) of the Income Tax Act - ACIT v. Jawaharlal L. Agicha (ITA No 1844/Mum/2012)-taxsutra.com (PDF 329 KB)

10/14/2016 - CBDT Circular: TDS under Section 194-I of the Income-tax Act is not applicable on lump-sum lease premium which is not adjustable against periodic rent - CBDT Circular No. 35/2016, dated 13 October 2016 (PDF 273 KB)

10/14/2016 - Amendment to Section 50C introduced by the Finance Act, 2016 for determining full value of consideration in the case of immovable property, is curative in nature and will apply retrospectively - Dharamshibhai Somani v. ACIT (ITA No. 1237/Ahd/2013) – Taxsutra.com (PDF 335 KB)

10/14/2016 - Amendment to Section 50C introduced by the Finance Act, 2016 for determining full value of consideration in the case of immovable property, is curative in nature and will apply retrospectively - Dharamshibhai Somani v. ACIT (ITA No. 1237/Ahd/2013) – Taxsutra.com (PDF 336 KB)

10/14/2016 - An amalgamated company cannot claim depreciation on the assets acquired in the scheme of amalgamation including goodwill, more than which is permitted to the amalgamating company - United Breweries Ltd. v. ACIT [ITA No. 722/Bang/2014, AY 2007-08] – Taxsutra.com (PDF 315 KB)

10/13/2016 - Corporate guarantee adjudged as shareholder service under exceptional circumstances; Interest on outbound loans to be determined applying sophisticated manner of loan benchmarking - Tega Industries Ltd. v. DCIT [ITA No. 1912/Kol/2012] – Taxsutra.com (PDF 325 KB)

10/10/2016 - Issue remitted to TPO for determining ALP after considering adjustments on account of customs duty, air freight expenses, and foreign exchange fluctuation - Motonic India Automotive Pvt Ltd v. ACIT (ITA No.741/Mds/2014 – AY 2009- 10) – Taxsutra.com (PDF 407 KB)

10/10/2016 - Issue remitted to TPO for determining ALP after considering adjustments on account of customs duty, air freight expenses, and foreign exchange fluctuation - Motonic India Automotive Pvt Ltd v. ACIT (ITA No.741/Mds/2014 – AY 2009- 10) – Taxsutra.com (PDF 407 KB)

10/10/2016 - Adjustment allowed to import price on account of extra credit period availed by the taxpayer from its AE; Accepts LIBOR plus 200 basis points as arm’s length interest rate on ECB loan - XYZ Pvt. Ltd v. ACIT (ITA No. 2201/Mds/2012) – Taxsutra.com (PDF 343 KB)

10/04/2016 - Disallowance under Section 14A will not apply to interest paid on partner’s capital - Quality Industries v. JCIT (ITA No.2000/PN/2014, AY: 2010-11) (PDF 337 KB)    

10/01/2016 - India Tax Konnect (PDF 367 KB)

9/30/2016 - Share issue expenditure is allowed under Section 35D of the Income-tax Act. Bonus deposited in trust and eventually paid to employees is allowed under Section 36(1)(ii) of the Act- Supreme Court - Shasun Chemicals & Drugs Ltd. v. CIT [2016] 73 taxmann.com 293 (SC) (PDF 337 KB)

9/30/2016 - Exemption under Section 54E of the Income-tax Act is eligible to depreciable assets even though for computation of capital gain it is treated as short term - CIT v. V. S. Dempo Company Ltd (Civil Appeal No. 4797/2008) – Taxsutra.com (PDF 289 KB)

9/29/2016 - Vacancy allowance is available only for a property that was ‘let out’; ‘intention to let’ is not relevant - Section 23(1)(c) of the Act 2 Sharan Hospitality Private Limited v. DCIT (ITA No. 6717/Mum/2012)(PDF 351 KB)

9/28/2016 - Workplace dress code prescribed by employer does not qualify as a uniform; such allowance is not eligible for tax exemption - Section 10(14)(i) of the Act read with Rule 2BB(1)(f) of the Income-tax Rules, 1962 (the Rules) (PDF 368 KB)

09/23/2016 - Foreign Portfolio Investors to be permitted to trade directly in Corporate Bonds without a broker (PDF 272 KB)

9/21/2016 - Employee related benefits reimbursed to the transfereecompany is allowable as business expenditure - The Wallace Flour Mills Co. Ltd v. CIT [ITR No. 104 of 1999] dated 26 August 2016 – Taxsutra.com (PDF 343 KB)

9/20/2016 - Key highlights of the revised tax treaty between India andSouth Korea - South Korea’s official name is ‘Republic of Korea’ (PDF 286 KB)

9/19/2016 - Foreign travel expenditure incurred for rewarding doctorsto solicit business is not allowable as businessexpenditure under the Income-tax Act - ACIT v. Liva Healthcare Limited (ITA No. 904/Mum/2013) – Taxsutra.com (PDF 345 KB)

9/16/2016 - Service fees payable to the subsidiary for productpromotion services are not taxable as FTS - Dr Reddy Laboratories Limited [A.A.R. No 1572 of 2014] taxsutra.com (PDF 344 KB)

9/16/2016 - Capital gain arising on transfer of shares of an Indiancompany is not taxable under the India-Mauritius taxtreaty, control and management is held to be outside India - Mahindra-BT Investment Company (Mauritius) Limited [AAR. No 991 of2010] - taxsutra.com (PDF 349 KB)

9/14/2016 - Model framework for guidelines on direct selling - Press release dated 12 September 2016-http://pib.nic.in/newsite/PrintRelease.aspx?relid=149728 (PDF 297 KB)

9/13/2016 - CBDT issues FAQs with respect to the Direct Tax DisputeResolution Scheme, 2016 - CBDT Notification No.35/2016, dated 26 May 2016 (PDF 267 KB)

9/09/2016 - Issuance of scrutiny notice under Section 143(2) of theIncome-tax Act cannot be ground to reject AAR applicationsince it does not address any specific question - Sage Publications Ltd U.K. v. DCIT (W.P.(C) 5870/2016) – Taxsutra.com (PDF 330 KB)

9/09/2016 - Gains arising from the grant of the call option for 150 yearsare not taxable as capital gains under the India-Singaporetax treaty - Praful Chandaria v. ADDIT(IT) [ITA No.: 4313/Mum/2011 (AY: 2002-03)] andPurse Holdings India P Ltd. v. ADDIT(IT) [ITA No.: 4717/Mum/2013 (AY: 2002-03)] - Taxsutra.com (PDF 339 KB)

9/09/2016 - India Tax Konnect - Whether any of the services envisaged under Article 13(4) of the India-UK tax treaty are ‘made available’to the taxpayer by the tax treaty with France (PDF 385 KB)

9/02/2016 - In view of non-discrimination clause of India-Italy tax treaty, capital gain tax exemption is available to non-resident company on amalgamation of foreign companies - Banca Sella S.p.A (AAR. No.1130 of 2011) - Taxsutra.com (PDF 345 KB)

9/02/2016 - Capital gains arising to Mauritius Investment Company arenot taxable in India under India- Mauritius tax treaty - Shinsei Investment I Limited [AAR. No.1017 of 2010] - taxsutra.com (PDF 346 KB)

9/02/2016 - Arm’s length principle cannot be invoked where replacement of self-declared prices of international transactions by ALP results in lowering of taxpayer’s income chargeable to tax - Mercer Consulting India Pvt. Ltd. v. DCIT (ITA No.1085/Del/2016) – Taxsutra.com (PDF 333 KB)

9/01/2016 - CBDT streamlines the process of Port Clearance Certificate, voyage return, voyage assessment and issuance of NOC in the case of Foreign Shipping Companies - Section 172 of the Act (PDF 285 KB)

8/30/2016 - Amendment introduced by the Finance Act for disallowance due to non-deduction of tax at source is applicable with effect from the relevant financial year pursuant to receiving the Presidential assent - Piu Ghosh v. DCIT (ITA No. 191 of 2009) – Taxsutra.com (PDF 355 KB)

8/26/2016 - Salary received by a non-resident in India for services rendered outside India not eligible for exemption under the tax treaty - Swaminathan Ravichandran v. ITO (ITA No. 299/Mds/2016) Taxpayer’s appeal before the Tribunal also includes issues dealing with income from house property. However, this Flash News is prepared only on the issues relevant to a claim of exemption of salary income in India under the India-China tax treaty. (PDF 340 KB)

8/26/2016 - Royalty income, not being effectively connected with a PE (branch office) in India, is taxable on a gross basis under the India-Italy tax treaty - Iveco Spa v. ADIT [ITA No. 5447/Del/2010 (AY: 2007-08), ITA No. 5696/Del/2012 (AY: 2009-10)] (PDF 331 KB)

8/19/2016 - Software development services are not taxable under ‘Independent personal services’ Article of the India-USA tax treaty since conditions given under the said Article are not fulfilled - ITO v. Susanto Purnamo [I.T.A. No.254/Ahd/2015] - taxsutra.com (PDF 331 KB)

8/16/2016 - Software development services are not taxable under ‘Independent personal services’ Article of the India-USA tax treaty since conditions given under the said Article are not fulfilled - Sumitomo Corporation India Pvt. Ltd. v. CIT – (ITA 381/2013, ITA 738/2015, ITA 382/2013, ITA 702/2014 - Assessment Years (AYs) 2007-08, 2008-09, 2009-10 and 2010-11) (Delhi High Court) (PDF 350 KB)

8/16/2016 - Berry ratio can only be applied in limited circumstances where value of the goods are not directly linked to the quantum of profits and the profits are mainly dependent on expenses incurred - Sumitomo Corporation India Pvt. Ltd. v. CIT – (ITA 381/2013, ITA 738/2015, ITA 382/2013, ITA 702/2014 - Assessment Years (AYs) 2007-08, 2008-09, 2009-10 and 2010-11) (Delhi High Court) (PDF 350KB)

08/12/2016 - Rental income is to be treated as business income of the taxpayer who is engaged in the business of leasing of property – Supreme Court - Rayala Corporation Pvt. Ltd v. ACIT (Civil Appeal No.6437 of 2016)(Supreme Court)– Taxsutra.com (PDF 332 KB)

8/11/2016 - Revisions to the Framework proposed by the MAT-Ind AS Committee (PDF 328 KB)

8/11/2016 - The lower house of the Parliament passes the Taxation Laws (Amendment) Bill, 2016 (PDF 313 KB)

8/10/2016 - Intellectual Property is not required to be registered to claim depreciation - Landis Gyr Limited v. DCIT (ITA No.37/Kol/2012) – Taxsutra.com(PDF 328 KB)

8/10/2016 - Intellectual Property is not required to be registered to claim depreciation - Landis Gyr Limited v. DCIT (ITA No.37/Kol/2012) – Taxsutra.com(PDF 338 KB)

8/10/2016 - Penalty for delay in filing of Annual Information Return not to be levied in view of taxpayer’s bona fide ignorance plea - Malda District Central Co-op Bank Ltd v. DIT( I&CI) (ITA Nos 956 & 957/Kol/2013) taxsutra.com(PDF 330 KB)

8/9/2016 - India Tax Konnect (PDF 4.35 MB)

08/05/2016 - Foreign-investments-in-Rupee-denominated-bonds-issued-overseas-by-Indian-Corporates-2 (PDF 258 KB)

08/05/2016 - Reference made by the Assessing Officer to Transfer Pricing Officer set aside, as no opportunity of being heard allowed by the Assessing Officer - Indorama Synthetics (India) Ltd. v. ADIT – (Delhi High Court) – (W.P.(C) 6422/2013 & CM No.14002/2013 (Stay), W.P.(C) 4558/2014, W.P.(C) 12072/2015 – Taxsutra.com (PDF 313 KB)

8/4/2016 - CUP method accepted for purchase of heavy earthmoving machinery and change of method by the taxpayer during TP assessment proceedings upheld - Liugong India Private Limited v. ACIT (ITA No. 1482/Del./2015) (PDF 336 KB)

8/4/2016 - GST Constitution Amendment Bill approved by the Upper House of the Parliament (PDF 305 KB)

8/3/2016 - Payment for managerial services cannot be taxed as Fees for Technical Services on application of MFN clause under the India-France tax treaty - Steria (India) Ltd v. CIT (W.P. (C) 4793/2014 & CM Appeal 9551/2014) (Delhi High Court) – Taxsutra.com (PDF 296 KB)

8/3/2016 - Removal of mandatory warehousing requirement for Export Oriented Units (PDF 285 KB)

7/29/2016 - Mere delay in filing a declaration in the prescribed format is a procedural lapse and it would not obligate the seller to collect tax at source - CIT v. Siyaram Metal Udyog (P) Ltd. (ITA No.519 & 526 of 2016) - Taxsutra.com (PDF 329 KB)

7/28/2016 - Since the situs of the IPR was not in India, income accruing from the transfer of its right title and interest is not taxable in India. The Situs of the intangible asset is attached to its owner - CUB Pty Limited v. UOI & Ors [2016] 71 taxmann.com 315 (Del) (PDF 340 KB)

7/28/2016 - The Union Cabinet approves changes to the GST Constitution Amendment Bill (PDF 309 KB)

7/27/2016 - Levy of interest under Section 234B(1) and Section 234B(3) of the Income-tax Act is complimentary and not exclusive - MBG Commodities (P) Ltd. v. DCIT (ITA No. 1321/Hyd/2015) – Taxsutra.com (PDF 250 KB)

7/25/2016 - Instruction No 3/2016, laying down a procedure for implementation of statutory provisions and not legislative provisions, cannot be given retrospective effect - Nikon India Pvt. Ltd. v. DCIT (ITA No.6314/Del/2015) – AY 2011-12 (PDF 388 KB)

7/22/2016 - CBDT issues press release on paperless PAN and TAN application process - CBDT press release, dated 22 July 2016 (PDF 250 KB)

7/21/2016 - India’s Social Security Agreement with Japan will come into effect from 1 October 2016 - http://mea.gov.in/pressreleases.htm?dtl/27088/IndiaJapan_Social_Security_Agreement Accessed on 21 July 2016 (PDF 327 KB)

7/18/2016 - Deduction under 80-IA cannot be disallowed pending tax department’s appeal before the Supreme Court - CIT v. AL Logistics P Ltd [Tax Case Appeal No 405 of 2016]- Taxsutra.com (PDF 331 KB)

7/18/2016 - BEPS Action Plan 4 – Elements of the design and operation of the Group Ratio Rule - Public discussion draft - Action Plan 4 (AP4) - Limiting Base Erosion Involving Interest Deductions and Other Financial Payments, covered in our earlier Flash News (PDF 390 KB)

7/18/2016 - BEPS Action Plan 4 – Elements of the design and operation of the Group Ratio Rule - Public discussion draft - Action Plan 4 (AP4) - Limiting Base Erosion Involving Interest Deductions and Other Financial Payments, covered in our earlier Flash News (PDF 386 KB)

7/18/2016 - Marketing services for expansion of business overseas are not in the nature of fees for technical services - Batlivala & Karani Securities (India) (P.) Ltd [2016] 71 taxmann.com 142 (Kol) (PDF 286 KB)

7/14/2016 - CBDT lays down the procedure and criteria for the manual selection of returns/cases for compulsory scrutiny during the financial year 2016-17 - CBDT Instruction No. 4/2016, dated 13 July 2016 supersedes the earlier Instruction on this subject (PDF 328 KB)

7/14/2016 - No tax deduction at source under Section 194C of the Income-tax Act on freight charges reimbursed to the supplier -Hightension Switchgears Private Limited v. CIT (ITA 8 of 2011) (Cal) – Taxsutra.com (PDF 328 KB)

7/13/2016 - Taxpayer is qualified to be a resident of India based on the tie-breaker provisions of India-Sri Lanka tax treaty - Shalini Seekond v. ITO (ITA No. 3877/Mum/2012) – Taxsutra.com This decision also covers other issues, however, this flash news only deals with the issues pertaining to tax residency under the tax treaty determined based on the criteria laid down for that purpose (PDF 358 KB)

7/12/2016 - Taxpayer to be given an opportunity to cross-examine authorised-personnel of companies, who has provided unaudited segmental data to the transfer pricing officer - Cashedge India Private Limited [TS-445-HC-2016(DEL)-TP] (PDF 250 KB)

7/11/2016 - India Tax Konnect (PDF 2.36 MB)

7/11/2016 - If the satellite communication system monitoring equipment is in India, the taxpayer is rendering services in India -Intelsat Global Sales and Marketing Ltd. v. ITO [I.T.A. Nos. 1070 to 1074 & 1621/Mds/2010, 1562/Mds/2011, 2246/Mds/2012, 470/Mds/2014, 432/Mds/2015 & 516/Mds/2016 - Assessment years: 2002-03 to 2012-13] (PDF 339 KB)

7/08/2016 - Payment received for restraining the use of trade-mark which ceases to exist is a capital receipt not chargeable to tax - Orient Blackswan Private Limited v. ACIT ITA no.252/Hyd/2012- AY 2008-09, 731/Hyd/2014- AY 2009-2010, 732/Hyd/2014 -AY 2010-11 – Taxsutra.com (PDF 339 KB)

7/08/2016 - Benefit of tonnage tax scheme is available to slot charter arrangements – Supreme Court - CIT v. Trans Asian Shipping Services (P) Ltd. [Civil Appeal No. 5870 of 2016] (SC) – Taxsutra.com (PDF 320 KB)

7/08/2016 - The OECD releases discussion draft for additional guidance on the attribution of profits to Permanent Establishment - Interested parties are invited to send their comments on this discussion draft by 5 September 2016 by email to TransferPricing@oecd.org in Word format (PDF 293 KB)

7/08/2016 - Future projections alone should be adopted in respect of valuation of intangibles, and such valuation cannot be reviewed with actuals at a later date - DQ (International) Ltd v. ACIT (ITA No. 151/Hyd/2015) – Taxsutra.com (PDF 323 KB)

7/08/2016 - Retention bonus is allowable as business expenditure - SAIC India Private Limited v. DCIT (ITA No.6464/Del./2012) order dated 27 June 2016 – Taxsutra.com (PDF 283 KB)

7/07/2016 - Voluntary CSR expenditure are allowable as business expenditure - ACIT v Jindal Power Limited (IT APPEAL NO. 99 (BLPR) OF 2012) - taxsutra.com (PDF 323 KB)

7/05/2016 - The proviso to Section 40(a)(ia) of the Income-tax Act is retrospective in nature. In case of conflicting High Court decisions, the Tribunal is required to be followed the beneficial decision to the taxpayer - R K P Company v. ITO [ITA No. 106/RPR/2016] (AY 2010-11) (PDF 335 KB)

7/05/2016 - Two enterprises cannot be treated as an associated enterprise unless both the parameters laid down in Section 92A of the Income-tax Act are fulfilled - Page Industries Ltd. v. DCIT [IT(TP)A No. 163/Bang/2015] - AY 2010-11 (PDF 353 KB)

7/05/2016 - Income from sale of software does not amount to royalty under India-Netherlands tax treaty - ADIT v. Baan Global B V (ITA No. 7048/Mum/2010) – Taxsutra.com (PDF 379 KB)

7/04/2016 - CBDT issues Central Action Plan for the Financial Year 2016-17 (PDF 381 KB)

7/01/2016 - Clarification regarding grandfathering of Offshore Derivative Instruments Issuers (PDF 280 KB)

7/01/2016 - Clarification regarding grandfathering of Offshore Derivative Instruments Issuers (PDF 289 KB)

6/30/2016 - CBDT notifies rules for computation of fair market value and reporting requirements in relation to indirect transfer provisions - CBDT Notification 55/2016, dated 28 June 2016 (PDF 281 KB)

6/30/2016 - CBDT notifies Foreign Tax Credit rules - F. No. 142/24/2015-TPL, dated 18 April 2016 (PDF 303 KB)

6/30/2016 - Stamp duty payment is allowed as revenue expenditure - Priithvi Associates v. ACIT (Tax Appeal No. 414 of 2007) (Guj) –Taxsutsra.com (PDF 327 KB)

6/29/2016 - CBDT notifies rules with respect to non-furnishing of PAN by non-residents and furnishing of alternative documents - CBDT Notification No. 53 /2016, F.No.370 142/16/2016-TPL, dated 24 June 2016 (PDF 287 KB)

6/28/2016 - Since the payment made by the taxpayer is in kind, the provisions of Section 194J of the Income-tax Act are not applicable for deduction of tax at source - Red Chilles Entertainment Pvt. Ltd. v. ACIT ITA no.1577/Mum./2013 AY 2009-10 – Taxsutra.com This decision also covers other issues, however, this Flash news only deals with the issue pertaining to the deduction required to be made under Section 194J of the Act and resultant allowability of the expenditure (PDF 329 KB)

6/27/2016 - CBDT notify amendments to Rule 8D of Income-tax Rules - Notification No. 43/2016 [F.No.. 370142/7/2016-TPL] dated 2 June 2016 (PDF 263 KB)

6/27/2016 - Section 206AA of the Income-tax Act does not override the beneficial provisions of the tax treaty - DCIT v. Pricol Ltd (ITA No. 56 & 57/Mads/2014) – Taxsutra.com (PDF 325 KB)

6/27/2016 - Even though in earlier years, the taxpayer itself had accepted the department’s stand in MAP proceedings, this should not be considered as a consent of the taxpayer for the adjustment proposed by the department in earlier years - ACIT v. Turner International India Pvt. Ltd. ITA No. 3080/Del/2011- Assessment Year: 2005-06, ITA No. 5981/Del/2010- Assessment Year: 2006-07, Cross Obj. No. 246/Del/2011 (In ITA No. 3080/Del/2011) - Assessment Year: 2005-06 (PDF 315 KB)

6/24/2016 - Once the approval by DSIR is granted, the AO cannot verify the prescribed conditions to deny the deduction under Section 80-IB(8A) of the Income-tax Act - Principal Commissioner of Income Tax v. B.A. Research India Ltd [(TS-337- HC-2016(GUJ)]-Taxsutra.com (PDF 305 KB)

6/24/2016 - CBDT amends General Anti-Avoidance Rules - www.taxguru.in(PDF 278 KB)

6/24/2016 - Exemption from levy of Krishi Kalyan Cess provided to the invoices issued and services completed prior to 1 June 2016 (PDF 249 KB)

6/23/2016 - Draft revised Authorised Economic Operator Scheme guidelines notified (PDF 293 KB)

6/22/2016 - Transfer pricing adjustment on free of charge corporate guarantee and letter of comfort deleted, adjustment for interest-free advances upheld - TVS Logistics Services Ltd. v. DCIT (ITA No.458/Mds/2016) – Taxsutra.com (PDF 369 KB)

6/21/2016 - Payment to toll collecting agencies is liable for TDS under Section 194C and not under Section 194H of the Incometax Act - Payment to toll collecting agencies is liable for TDS under Section 194C and not under Section 194H of the Incometax Act  (PDF 326.45 KB)

6/17/2016 - Taxpayer considered as BPO in subsequent years, cannot be considered as KPO in earlier year for providing same services - SNL Financial (India) Pvt. Ltd. v. DCIT (ITA No. 770/Ahd/2014) (PDF 330.90 KB)

6/17/2016 - Government of India releases the model Goods and Service Tax Law (PDF 376.04 KB)

6/16/2016 - Contribution of land to AOP for joint development is not transfer of capital asset and therefore not taxable as capital gain  - Ashok Gordhandas Kirpalani v. ITO (ITA No.1647/PN/2014) (Pune) - Taxsutra.com (PDF 327.90 KB)

6/16/2016 - Allotment of bonus shares cannot be considered as received for an inadequate consideration, and therefore, it is not taxable as income from other sources - DCIT v. Dr. Rajan Pai [ITA.1290/Bang/2015, (Assessment Year: 2012-13)] (PDF 350 KB)

6/16/2016 - Salary received by a non-resident in India is taxable in India on receipt basis - Tapas Kr. Bandopadhyay v. DDIT (ITA No. 70/Kol/2016)(PDF 364 KB)

6/16/2016 - Salary income earned outside India is exempt from tax in India under the tax treaty based on split residency position - Section 90(2) of the Act Raman Chopra v. DCIT, [2016] 69 taxmann.com 452 (Del) (PDF 326 KB)

6/16/2016 - KPMG India Tax Konnect - June 2016 (PDF 2.24 MB)

6/15/2016 - SEBI tightens the norms for issuance of Offshore Derivative Instruments (ODIs) - Identification of Beneficial Owners / Transferability (PDF 358 KB)

6/15/2016 - Initial assessment year under Section 80IB(11A) is the assessment year in which the taxpayer commenced its business and not the assessment year when the said section has been amended - Anand Food and Dairy Products v. ITO [TAX APPEAL No. 174-176 of 2016] (PDF 330 KB)

6/14/2016 - The Government of India enhances benefits under the Employees’ Deposit-Linked Insurance Scheme, 1976 - Notification no. G.S.R. 543(E), dated 24 May 2016, published in the Gazette of India (PDF 382 KB)

6/13/2016 - Notional interest on security deposit paid to landlord not to be considered in perquisite valuation of rent-free accommodation provided by employer - Section 17(2)(i) of the Act read with Rule 3(1) of the Income Tax Rules, 1962 (PDF 330 KB)    

6/10/2016 - Consideration from offshore construction contract for installation of ‘Single Point Mooring’ is not taxable as royalty as well as FTS in India - Technip Singapore Pte. Ltd. v. DIT (W.P (c) No. 7416/2012) (Delhi High Court) – Taxsutra.com (PDF 350.53 KB)

6/10/2016 - 35 per cent of net global profits are attributed to Indian PE of a Chinese company in respect of both hardware and software supplied to Indian customers – Delhi Tribunal - ZTE Corporation v. ADIT (ITA No.5870/Del/2012) – Taxsutra.com (PDF 343.87 KB)

6/10/2016 - CBDT issues FAQs on newly introduced TCS provisions - Existing Section 206C(1D) of the Act provides TCS shall be applicable on sale of bullion exceeding two lakh rupees and jewellery exceeding five lakh rupees. (PDF 290.95 KB)

6/7/2016 - Indian subsidiary of a US company does not constitute a PE in India as it does not satisfy any of the tests of PE Article of the India-USA tax treaty - Adobe Systems Incorporated v. ADIT (Writ Petition (C) 2384/2013 & CM 4515/2013) – Taxsutra.com (PDF 345.37 KB)

6/6/2016 - Home loan interest not eligible for double deduction while computing capital gains - Captain B L Lingaraju v. ACIT (ITA No.906/Bang/2014) (PDF 342.77 KB)

6/6/2016 - Tax deduction at source is not applicable to reasonable per diem allowances paid to employees for overseas trips - CIT v. Symphony Marketing Solutions India Pvt. Ltd., (TS-5207-HC-2016) (Kar) – Taxsutra.com (PDF 380.22 KB)

6/3/2016 - Foreign exchange fluctuation loss on outstanding foreign currency loans is allowed as business expenditure under the Income-tax Act - Cooper Corporation Pvt. Ltd. v. DCIT (ITA No. 866/PN/2014) – Taxsutra.com (PDF 337.36 KB)

6/1/2016 - Pegging perquisite valuation to SBI-rate for bank employees' concessional loans, no 'hardship' - Section 17(2)(vi) of the Income Tax Act, 1961 as amended by the Finance Act, 2004 which became Section 17(2)(viii) effective 1 April 2010 Rule 3(7)(i) of the Income Tax Rules, 1962 as amended by Income Tax (First Amendment) Rules, 2004 (PDF 307.41 KB)

5/30/2016 - Enabling provisions relating to ‘Krishi Kalyan Cess’ introduced - Notification Nos. 27/2016-Service Tax to 31/2016-Service Tax and Notification No. 28/2016-Central Excise (N.T.)] dated 26 May 2016 (PDF 378.70 KB)

5/30/2016 - The Central Board of Direct Taxes notifies Equalisation Levy Rules, 2016 - Notification No. 37 and 38/2016, dated 27 May 2016 (PDF 260.15 KB)

5/30/2016 - Transfer of shares on deferred basis - Notification No. FEMA 368/2016-RB, dated 20 May 2016 – Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Seventh Amendment) Regulations, 2016 (PDF 276.44 KB)

5/27/2016 - Whenever the provision of an opportunity for hearing is actually turned into an empty formality by the Officer, the opportunity provided by the show cause notices become meaningless opportunities - Sutherland Global Services Pvt. Ltd. v. UOI, Ministry of Finance - Department of Revenue, JCIT, DCIT, CBDT - WMP.No.9140 of 2016 in WP.10335 - Madras High Court (PDF 360.60 KB)

5/27/2016 - Government of India declares 8.8 per cent interest rate on Employees’ Provident Fund Scheme - http://www.epfindia.com/site_docs/PDFs/Circulars/Y2016-2017/Invest_InterestRate_2015-16_3725.pdf accessed as on 27 May 2016 (PDF 311.70 KB)

5/24/2016 - CBDT issues draft rules for computation of fair market value and reporting requirement in relation to indirect transfer provisions - Read with Explanation 5 to Section 9(1)(i) of the Act 2 F No. 142/26/2015-TPL, dated 23 May 2016 (PDF 293.50 KB)

5/24/2015 - Regulatory connect - May 2016 ((PDF 1.94 MB))

5/23/2016 - Payment received by a UK company under the management and administration services agreement is taxable as royalty under the Income-tax Act as well as the India-UK tax treaty - TNT Express Worldwide (U.K.) Limited v. DDIT (IT(TP)A No.6/Bang/2011) – Taxsutra.com (PDF 339.649 KB)

5/20/2016 - Royalty received from franchisee remitted to an overseas AE without value-addition to be treated as a ‘pass-through’ cost for computation of operating profit margin - Mc Donald’s India (P) Ltd v. DCIT (ITA No. 961/DEL/2010) (Assessment Year: 2003-04) (PDF 342.62 KB)

5/19/2016 - Transferor company held taxable even in respect of part sale consideration directly received by its shareholders under a scheme of arrangement for transfer of business - CIT v. Salora International Ltd dated (ITA 12/2003, 13 May 2016) – Taxsutra.com (PDF 348.66 KB)

5/17/2016 - Revised warehousing guidelines and procedures in relation to imported goods - Notification No 66/2016-Customs (NT) to 72/ 2016-Customs (NT) dated 14 May 2016 and Circular No 17/ 2016-Customs and Circular No 18/2016 – Cus dated 14 May 2016 (PDF 280.66 KB)

5/17/2016 - Payment of administrative fees to foreign company is not liable for disallowance under Section 40(a)(i) of the Income-tax Act for non-deduction of tax at source in view of nondiscrimination clause under the India-USA tax treaty - CIT v. Herbalife International India Pvt Ltd. (ITA No. 7/2007) – Taxsutra.com (PDF 319.76 KB)

5/13/2016 - India and Mauritius sign a protocol amending the India- Mauritius tax treaty - http://mof.govmu.org (PDF 295.51 KB)

5/12/2016 - Residential status is relevant while exercising the option and not during the vesting period for taxability of Stock Appreciation Rights - Shri Soundarrajan Parthasarathy and Shri Kummathi Rameswar Reddy v. DCIT (ITA No.390/Mds/2016) – Taxsutra.com (PDF 313.01 KB)

5/12/2016 - KPMG India Tax Konnect (PDF 476.76 KB)

5/12/2016 - Residential status is relevant while exercising the option and not during the vesting period for taxability of Stock Appreciation Rights - Shri Soundarrajan Parthasarathy and Shri Kummathi Rameswar Reddy v. DCIT (ITA No.390/Mds/2016) – Taxsutra.com (PDF 311 KB)

5/10/2016 - Income accrues or arises only when a right to receive the amount is vested in the taxpayer - Supreme Court - P.G. & W. Sawoo v. ACIT (Civil Appeal No. 4091 of 2016) – itatonline.com (PDF 281.41 KB)

5/10/2016 - CBDT issues press release on Protocol amending the India-Mauritius tax treaty - CBDT press release, dated 10 May 2016 (PDF 270.01 KB)

5/10/2016 - Agreement between taxpayer and its AE and proof that the AMP expenditure is not for the taxpayers business in India are prerequisite for treating the AMP expenditure as an international transaction - Tribunal relied on the decision of the Delhi High Court in Bausch & Lomb Eyecare (India) Pvt. Ltd (ITA No. 643 of 2014) for coming to this conclusion (PDF 335.04 KB)

5/6/2016 - Proposed amendments to the Finance Bill, 2016 (PDF 324 KB)

5/4/2016 - CBDT amends TDS and TCS related certain rules - Notification No. 30/2016, dated 29 April 2016 (PDF 298.45 KB)

5/3/2016 - Waiver of loan availed for acquiring capital asset is taxable as business income - CIT v. Ramaniyam Homes (P.) Ltd. [2016] 68 taxmann.com 289 (Mad) (PDF 311.28 KB)

5/3/2016 - The Government of India amends Employees’ Pension Scheme allowing members to contribute till 60 years of age - Notification no. G.S.R. 748(E), dated 16 November 1995, published in the Gazette of India (PDF 295.86KB)

5/3/2016 - Taxpayer is a beneficial owner of royalty and interest income and therefore eligible for beneficial tax rate under the India-Singapore tax treaty - Imerys Asia Pacific Pvt. Ltd., v. DDIT (ITA No.233/PN/2014) – Taxsutra.com (PDF 284.90KB)

5/3/2016 - CBDT clarifies on taxability of income from the transfer of unlisted shares - CBDT Clarification F No. 225/12/2016/ITA.II, dated 2 May 2016 (PDF 259.03KB)

04/01/2016 - Tax Assemblage 2016 (PDF 386 KB)

4/28/2016 - CBDT circular clarifying on payment of interest on refund under Section 244A of the Income-tax Act of excess TDS deposited under the provisions of the Income-tax Act - Circular No. 7 dated 23 October 2007, states that no interest under section 244A of the Act, is admissible on refunds to be granted in accordance with the circular or on the refunds already granted in accordance with Circular No. 769 or Circular 790 dated 20.4.2000. (PDF 276.06 KB)

4/28/2016 - CBDT circular clarifying on payment of interest on refund under Section 244A of the Income-tax Act of excess TDS deposited under the provisions of the Income-tax Act - Section 244A of the Act provides that the taxpayer shall be entitled to receive interest at the rate of one-half percent for the specified period on the amount of refund that becomes due to the taxpayer under the Act (PDF 276.06 KB)

4/27/2016 - Conversion of firm into company under part IX of the Companies Act, 1956 does not amount to transfer and not subject to capital gains tax - DCIT v. R.L. Kalathia & Co. [2016] 66 taxmann.com 249 (Guj) (PDF 309.33 KB)

4/18/2016 - Enactment of Maharashtra Tax Laws (Levy, Amendment, and Validation) Bill 2016 (PDF 383 KB)

4/18/2016 - CBDT issues draft rules on Foreign Tax Credit - F. No. 142/24/2015-TPL, dated 18 April 2016 (PDF 296.69 KB)

4/15/2016 - CBDT notifies new income-tax return forms for Assessment Year 2016-17 - Notification No. 24/2016, dated 30 March 2016 (PDF 281.86 KB)

4/15/2016 - Section 94A of the Income-tax Act notifying Cyprus as a notified jurisdiction is constitutionally valid - T.Rajkumar, K.Dhanakumar and T.K.Dhanashekar v UOI, Central Board of Direct Taxes, ITO (Intl Taxation) [W.P.Nos.17241 to 17243 & 17407 to 17412 of 2015] – Taxsutra.com (PDF 371.66 KB)

4/15/2016 - Mere technical error in the return of income would not defeat the claim of tax treaty benefit - Pramerica ASPF II Cyprus Holding Limited v. DCIT (ITA No.1113/MUM/2015) – Taxsutra.com (PDF 291 KB)

4/14/2016 - Tested party shall be selected with reference to the entity which has undertaken the transaction. Market determined interest rate applicable to currency in which loan has to be repaid shall be considered at arm’s length - India Debt Management Pvt Ltd v. DCIT [IT(TP)A No. 7518/Mum/2014] – Taxsutra.com (PDF 369.39 KB)

4/14/2016 - Upfront payment for acquisition of leasehold rights over an immovable property for 99 years is not rental income hence not liable for deduction of tax at source under Section 194-I of the Income-tax Act - Foxconn India Developer (P) Ltd. v. ITO [Tax case appeal no. 801 of 2013] – Taxsutra.com (PDF 346.92 KB)

4/14/2016 - Web-hosting services provided by a foreign company are not taxable as royalty in India - DDIT v. Savvis Communication Corporation [I.T.A. No. 7340/Mum/2012, Assessment years: 2009-10] – Taxsutra.com (PDF 310.46 KB)

4/13/2016 - Payment for the use of virtual voice network is neither fees for technical services nor royalty under the India-UK tax treaty - Interroute Communications Limited v. DDIT (I.T.A. No. 2284/Mum/2014) – Taxsutra.com (PDF 310 KB)

4/11/2016 - Turnover filter considered at 10 times; Comparables with RPTs up to 15 percent accepted; standard deduction of +/- 5 percent benefit under the erstwhile provisions of Incometax Act confirmed - ACIT v. McAfee Software (India) Pvt Ltd [IT(TP)A No.1388/Bang/2011 and IT(TP)A No. 04/Bang/2012 – AY 2005-06] – Taxsutra.com (PDF 375.95 KB)

4/11/2016 - No rebate on stamp duty paid in the State of Maharashtra on the order of the High Court sanctioning the scheme of compromise or arrangement for stamp duty paid in another state -  http://bombayhighcourt.nic.in/ (PDF 311.85 KB)

4/6/2016 - KPMG India Tax Konnect - April 2016 (PDF 428 KB)   

3/31/2016 - Services provided by the Bombay Stock Exchange to transact a business of sale and purchase of shares do not amount to fees for technical services – Supreme Court - CIT v. Kotak Securities Ltd. [2016] 67 taxmann.com 356 (SC) (PDF 335 KB)

3/30/2016 - Payment of inter-connection usage charges by an Indian telecom service provider to a foreign telecom operator is neither FTS nor royalty under the Act or the relevant tax treaties - Bharti Airtel Limited v. ITO (TDS) (ITA Nos. 3593 To 3596/Del/2012) – Del - Taxsutra.com (PDF 364 KB)

3/30/2016 - Guidelines for Foreign Direct Investment on e-commerce - Press Note No. 3 (2016 series) dated 29 March 2016 (PDF 295 KB) 

3/23/2016 - Income arising from container services is not taxable under Section 44B of the Income-tax Act. In the absence of a PE under the India-Singapore tax treaty, the business income is not taxable in India - Forbes Container Line Pte. Ltd. v. ADIT (ITA No.1607/Mum/2014) – Mum - Taxsutra.com (PDF 304 KB)

3/22/2016 - Aggregation of transaction under TNMM is rejected since facts of the case indicated unusual features which remained unexplained by the taxpayer - Delhi High Court - Denso India Limited v. ACIT (ITA No. 443/2013 and ITA No. 451/2013) - Del – Taxsutra.com (PDF 338 KB)

3/18/2016 - The CBDT notifies the Rules in relation to the Safe Harbour provisions for offshore funds - Notification No. 14/2016 [F.No. 142/15/2015-TPL] dated 15 March 2016 (PDF 332 KB)

3/18/2016 - Subsidies for reimbursement of cost relating to manufacture or sale of products of an industrial undertaking are eligible for deduction under Section 80-IB and 80-IC of the Income-tax Act - CIT v. Meghalaya Steels Ltd. [2016] 67 taxmann.com 158 (SC) (PDF 325 KB)

3/18/2016 - A foreign company engaged in outsourcing services constitutes a business connection under the Income-tax Act but does not have a PE in India under the India-UK tax treaty - DCIT v. Vertex Customer Management Ltd. [2016] 67 taxmann.com 105 (Del) (PDF 323 KB)

3/18/2016 - India’s Social Security Agreement with Australia comes into effect (PDF 295 KB)

3/14/2016 - Ministry of Corporate Affairs permits buyback of shares on the basis of limited review financials - MCA Notification dated 10 March 2016 (PDF 247 KB)

3/14/2016 - CBDT replaces guidelines for selection and referral of transfer pricing cases for assessment - CBDT Instruction No.3/2016 dated 10 March 2016 (PDF 281 KB)

3/14/2016 - The Bombay High Court’s decision on Section 14A of the Income-tax Act and the binding precedent - HDFC Bank Ltd. Mumbai v. DCIT [2016] 67 taxmann.com (Bom) (PDF 353 KB)

3/11/2016 - Consultancy services in the fields of exploration, mining and extraction are FTS and do not constitute a PE in India under India-Germany tax treaty - Rheinbraun Engineering Und Wasser GmbH v. DIT (ITA No. 2353/Mum/2006) – Taxsutra.com (PDF 311 KB)

3/09/2016 - Competition Commission of India issues new notifications to increase thresholds for merger and acquisition transactions and extend target-based exemption - Notification No S.O. 673(E), S.O. 674(E) and S.O. 675(E)dated 4 March 2016 (PDF 303 KB)

3/8/2016 - CBDT clarifies on taxability of consortium members in the case of EPC contracts and turnkey projects - CBDT Circular No. 7/2016 dated 7 March 2016 (PDF 280 KB)

3/8/2016 - Government withdraws proposed taxation of provident fund and superannuation (PDF 314 KB)

3/7/2016 - CBDT clarifies on the India-UK tax treaty benefits available to the UK partnership firms - CBDT Circular No. 2/2016 dated 25 February 2016 (PDF 270 KB)

3/7/2016 - Incurring more expenditure on AMP compared to comparable companies, cannot be inferred as an international transaction between the taxpayer and its foreign AE - Essilor India Pvt. Ltd. v. DCIT [IT(TP)A No. 29/Bang/2014 and IT(TP)A No. 227/Bang/2015] - Bang – Taxsutra.com (PDF 390 KB)

3/3/2016 - The Government of India issues a notification on coverage of Banks under Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 - Notification No. S.O. 440(E) dated 10 February 2016 [F. No. S- 35018/10/2013-SS.II] (PDF 288 KB)

3/3/2016 - CBDT issues revised guidelines for stay of demand at the CIT(A) stage - CBDT (Office Memorandum) F.No. 404/72/93-ITCC dated 29 February 2016 (PDF 342 KB)

3/3/2016 - CBDT clarifies with respect to the deduction of tax at source on specified payments by broadcasters/ television channels to production houses and television channels/publishing houses to advertisement companies - CBDT Circular No. 4/2016 & 5/2016 dated 29 February 2016 (PDF 309 KB)

3/3/2016 - Amendments to Foreign Direct Investment Guidelines in FEMA - RBI Notification Nos. FEMA 361/2016-RB and 362/2016-RB dated 15 February 2016 (PDF 308 KB)

3/3/2016 - Operative Guidelines under M-SIPS - Dept. of Electronics and Information Technology (DeitY) Notification dated 24 February 2016 (PDF 276 KB)

3/2/2016 - When the foreign recipient is eligible for the benefit of the tax treaty, there is no scope for deduction of tax at source at the rate of 20 per cent under Section 206AA of the Income-tax Act - Wipro Ltd. v. ITO (2016-TII-27-ITAT-BANG-INTL) [IT (IT) A. Nos. 1544 to 1547/Bang/2013, (AY 2011-12) (PDF 364 KB)

3/2/2016 - CBDT clarifies on the issue of taxability of surplus on sale of shares and securities - CBDT Circular No. 6/2016 dated 29 February 2016 (PDF 284 KB)

3/1/2016 - Budget 2016 - Transfer Pricing Amendments  - www.indiabudget.nic.in (PDF 299 KB)

3/1/2016 - Union Budget 2016 www.indiabudget.nic.in (PDF 905 KB)

2/26/2016 - A tax officer does not have the power to recompute the book profit under MAT provisions and has to rely upon the accounts scrutinised and certified by the statutory auditors - Sri Hariram Hotels (P.) Ltd. v. CIT [2016] 66 taxmann.com 233 (Kar) (PDF 284 KB)

2/26/2016 - Consultancy charges on account of construction activity are not taxable as fees for technical services under Section 44D but business income under the provisions of the Income-tax Act - DDIT v. MSV International Inc [2016] 67 taxmann.com 156 (Del) (PDF 317 KB)

2/26/2016 - CBDT clarifies on taxability of transaction of buyback of shares undertaken prior to 1 June 2013 - CBDT Circular No. 3/2016 dated 26 February 2016 (PDF 277 KB) 

2/26/2016 - Japanese nationals to get a visa-on-arrival in India for business, tourism, conference and medical purposes - http://mha.nic.in dated 24 February 2016 (PDF 263 KB) 

2/26/2016 - India Economic Survey 2015-16 – Key Highlights - www.indiabudget.nic.in (PDF 470 KB) 

2/25/2016 - The Government of India issues a notification for changing the provisions of provident fund withdrawals under the Employees’ Provident Funds Scheme, 1952 - Notification No. G.S.R. 158(E), dated 10 February 2016 [F.No. S- 35012/5/2015-SS-II](PDF 299 KB) 

2/23/2016 - CBDT issues instructions to tax officers to adhere to the prescribed time limit of six months while passing a rectification order and the same must be passed by an order in writing - CBDT Instruction 1/2016 & 2/2016 dated 15 February 2016 (PDF 615 KB) 

2/23/2016 - No tax is to be deducted when interest has not been paid and the provision has been reversed in the books of accounts as no income is accrued to the payee - Karnataka Power Transmission Corporation Limited v. DCIT [2016] 67 taxmann.com 259 (Kar) (PDF 337 KB) 

2/22/2016 - The government notifies the definition of the term ‘startup’ and prescribes the procedure for its recognition and obtaining tax benefits - Notification [F. No. 5(91) /2015- BE.I] dated 17 February 2016 (PDF 349 KB) 

2/22/2016 - The Delhi High Court holds on acceptability of AAR application in different situations - Hyosung Corporation v. AAR 2016] 66 taxmann.com 217 (Del) (PDF 302 KB) 

2/19/2016 - The transfer pricing officer and the taxpayer are directed to avail services of a technical expert to opine on the nature of functions carried out by the taxpayer - Carrier Airconditioning & Refrigeration Ltd. v. ACIT [2016] 67 taxmann.com 72 (Del) (PDF 340 KB) 

2/17/2016 - Payment for data transmission services through a transponder is not royalty under the India-Thailand and India-Netherlands tax treaties - DIT v. Shin Satellite Public Co Ltd [ITA 500/2012], DIT v. New Skies Satellite BV [ITA 473/2012] (Del) – Del - Taxsutra.com (PDF 339 KB)

2/17/2016 - CBDT clarifies the term 'initial assessment year' under Section 80-IA of the Income-tax Act - CBDT Circular No. 1/2016 dated 15 February 2016 (PDF 289 KB) 

2/16/2016 - Sale of shares of the group concern to related parties treated as a sham transaction, hence capital loss on such transaction was disallowed - AAA Portfolios Pvt. Ltd. v. DCIT (ITA No. 2483/Del./2014: AY 2009- 10) – Del - Taxsutra.com - (PDF 338 KB) 

2/16/2016 - Revised procedure for valuation of imports from a related party by a Special Valuation Branch (SVB) of Customs - CBEC Circular No 5/2016-Cus dated 9 February 2016 (PDF 292 KB)

2/16/2016 - Resulting company entitled to pro-rata/proportionate TDS, advance-tax and MAT credit post demerger - Adani Gas Limited v. ACIT (ITA Nos. 2241 & 2516/Ahd/2011) – Ahd - Taxsutra. com (PDF 319 KB) 

2/16/2016 - Transfer Pricing adjustment in relation to intra-group services deleted; payment of 2 per cent on sales considered to be at arm’s length - N L C Nalco India Ltd. v. DCIT (ITA No 529/Kol/2008 – AY 2003-04) and N L C Nalco India Ltd. v. ACIT (ITA No 1256/Kol/2009 – AY 2004- 05) – Kol – Taxsutra.com (PDF 338 KB)

2/15/2016 - Buyback of shares as per the Companies Act is not a colourable device and such transaction is not treated as deemed dividend under the Income-tax Act - (ITA No. 3726/Mum/2015) – Mum - Taxsutra.com (PDF 332 KB) 

2/15/2016 - Even for the period prior to the amendment to the India-UAE tax treaty, the allowance of head office expenditure is to be considered under the Income-tax Act - Mashreq Bank PSC v. DDIT (ITA No. 1342/Mum/2006) – Mum - Taxsutra.com (PDF 243 KB) 

2/12/2016 - MCA releases draft rules on NCLT, schemes of compromises/arrangements and prevention of oppression and mismanagement, for public comments - www.mca.gov.in (PDF 325 KB) 

2/10/2016 - Interest paid on partners’ capital is an expenditure and not a statutory allowance and hence liable for disallowance under Section 14A of the Income-tax Act - ACIT v. Pahilajrai Jaikishin [2016] 66 taxmann.com 30 (Mum) (PDF 346 KB) 

2/10/2016 - The balance 10 per cent of the additional depreciation can be claimed in the immediately succeeding financial year, to the year in which the machinery is installed - CIT v. Rittal India Pvt. Ltd. [2016] 380 ITR 423 (Kar) (PDF 332 KB) 

2/10/2016 - KPMG India Tax Konnect - February 2016 (PDF 335 KB) 

2/9/2016 - The CBDT notifies the procedure for e-communication between a taxpayer and the Income-tax department - CBDT Notification No. 2/2016 dated 3 February 2016 (PDF 306 KB) 

2/8/2016 - CBDT notifies changes in reporting rules for PAN and Annual Information Reporting - CBDT Notification No. 95/2015, dated 30 December 2015 (PDF 301 KB) 

2/4/2016 - FEMA permits residents to acquire immovable property overseas jointly with non-resident relatives - FEMA (Acquisition and Transfer of Immovable Property outside India) Regulations, 2015 No. FEMA 7(R)/2015—RB issued on 21 January 2016 (PDF 294 KB) 

2/4/2016 - Tax rate of 20 per cent under Section 206AA of the Income-tax Act shall not apply to salary payments for default in providing PAN - Rashtriya Ispat Nigam Ltd. v. ACIT [2016] 65 taxmann.com 292 (Viz) (PDF 312 KB) 

2/4/2016 - Preference shares which have not yielded any exempt income have to be considered for disallowance under Section 14A of the Income-tax Act when the taxpayer is having exempt income from other investments - West Bengal Infrastructure Development v. ACIT (ITA No.388/Kol/2008) – Kol - Taxsutra.com (PDF 272 KB)

2/2/2016 - Project office for installation of petroleum platforms and submarine pipelines does not constitute a PE in India - National Petroleum Construction Company v. DIT [2016] 66 taxmann.com 16 (Del) (PDF 420 KB)

2/1/2016 - India signs two bilateral APAs with the U.K. for management charges and brand royalty - Press release by Government of India dated 22 January 2016 (PDF 271 KB) 

 

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