We are pleased to attach herewith the Tax & Regulatory Newsletter for April 16 – April 30 , 2017   highlighting major recent tax and regulatory developments in India.

DIRECT TAX                                                                                                                                                      

  1. Royalty is taxable on payment basis under the DTAA, in the case of non-residents
  2. Accumulated losses of amalgamating company to be set off after reducing interest waiver benefit
  3. Interest payment to Mauritian entities not taxable in absence of PE
  4. Income from letting of SEZ along with facilities is ‘business income’ and not ‘rental income’

 INTERNATIONAL TAX

  1. United Arab Emirates become the 109th jurisdiction to join the most powerful multilateral treaty against offshore tax evasion and avoidance
  2. France and UK launch major tax fraud probe
  3. Trump proposes 15 percent corporate tax rate, territorial tax system

 TRANSFER PRICING

  1. It is not the prerogative of Revenue to direct the taxpayer to conduct its business in a particular manner that will lead to higher revenue to the coffers of the tax gatherers
  2. In the absence of any substantive provision in Indian Transfer Pricing legislation, the Assessing Officer is not empowered to pre-suppose any hypothetical transaction between the taxpayer and its associated enterprise for taxing purposes

INDIRECT TAX

  1. GST council comes up with new draft rules, focus shifts to rates of various goods and services

Hope you will find it interesting and informative.

Nangia News Crunch