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We are pleased to attach herewith the Tax & Regulatory Newsletter for May 01- May 15, 2017  highlighting major recent tax and regulatory developments in India.

DIRECT TAX                                                                                                                                                      

  1. India gives its nod for signing Multilateral Instrument to implement OECD lead BEPS
  2. Payment for collaborative maintenance/ training services is taxable as “fees for technical services” as against “non-taxable” or “without prejudice taxable u/s 44BB” claim of Assessee
  3. Payment made under membership agreement by the member entity not taxable on the principle of mutuality, thus no obligation to withhold tax
  4. The Apex Court of India upholds disallowance of expenditure on default in withholding tax, irrespective of whether it is paid or payable

 INTERNATIONAL TAX

  1. Australian Budget 2017 – Highlights
  2. Sweden’s tax plan is the opposite of Donald Trump’s – and it is proving hugely successful
  3. OECD: Launches facility to disclose CRS avoidance schemes with 1800 bilateral exchange relationships

 TRANSFER PRICING

  1. Brand value accretion through incurrence of AMP expenditure of the taxpayer renders an incidental benefit to its brand owning associated enterprise which does not fall under the definition of ‘International Transaction’ and thus, not to be benchmarked
  2. Distinguishing the High Court’s findings in landmark case of Vodafone India, the Tribunal confirmed the levy of penalty for non-filing of Form 3CEB in relation to the taxpayer’s share investment transaction
  3. The primary onus of establishing the fact that its international transactions have a close nexus each other and thus, have been bundled for benchmarking purpose, rest with the taxpayer

INDIRECT TAX

  1. State GST act passed by 12 assemblies

Hope you will find it interesting and informative.

Nangia News Flash