Greetings!

We are pleased to attach herewith the Tax & Regulatory Newsletter – November 16th- 30th ,2018 Edition highlighting major recent tax and regulatory developments.

Inside this issue…

DIRECT TAX

Ahmedabad ITAT holds that there shall be no disallowance for non-deduction of TDS on an expense till the time such expense is not chargeable to tax
Central Board of Direct Taxes notifies 87 jurisdictions for the purpose of defining a ‘passive non-financial entity’ under Section 285BA of the Income-tax Act, 1961 read with Rule 114F of the Income-tax Rules, 1962
Delhi ITAT held that reimbursements of the payments made by the foreign company to personal seconded in India shall be treated as salary and not FTS under Indian tax law
EPFO introduces online submission of monthly Form IW-1
Delhi ITAT reiterates the importance of disposal test to qualify as a PE in India; ownership not a pre-condition to constitute PE
Madras high Court holds general clause of the agreement cannot determine character of an income to be Royalty or FTS

INTERNATIONAL TAX

Dutch to tighten tax rules for multinationals after EU pressure
Switzerland to end special tax allocation practices for new principal companies, finance branches
Google, Facebook Defend Tax Structures To EU Lawmakers
U.S. Companies Flee No-Tax Caribbean Havens After EU Crackdown

TRANSFER PRICING

ITAT consider Taxpayer as a license manufacturer and not contract manufacturer
AMP Expense incurred by the manufacturer – not an international transaction, does not warrant separate determination of ALP
Determination of Most Appropriate Method as per Section 92C(2) of Income Tax Act, 1961

We trust that you will find it interesting and informative.
Nangia & Co LLP_Newsletter_ November 16 – November 30, 2018 Edition