We are pleased to attach herewith the Tax & Regulatory Newsletter for March 16, 2017 – March 31st , 2017  highlighting major recent tax and regulatory developments in India.

Tax & Regulatory Newsletter – March 16, 2017 – March 31st , 2017

Inside this issue…

DIRECT TAX                                                                                                                                                      

  1. ITAT Delhi affirmed interest paid by Indian PE to HO of the Assessee Bank on money lent not allowable as deduction in terms of Article of Indo–UK DTAA thereby distinguishing between Article 7(5), and 7(7) of the Indo–UK DTAA and Article 7(3) of the Indo-Japan DTAA
  2. The date of pronouncement of the order by the ITAT should be considered as date of communication

 TRANSFER PRICING

  1. Reasons viz. taxpayer’s intention of not avoiding taxes; or the absence of non-disclosure of its international transactions, cannot be considered as tool for not undertaking benchmarking analysis to justify the arm’s length nature of the taxpayer’s transactions with its associated enterprises
  2. The Tribunal clarified that the interest rates along with a spread over and above thereon cannot be considered as ‘same’ for all types of international loans

INDIRECT TAX

  1. GST laws passed by Lok Sabha