international taxation

Role of Working Capital Adjustments in Transfer Pricing

Income Tax - Transfer pricing provisions was incorporated in the Income Tax Act in April 2001 and now it has travel the journey of almost two decades in India. If we give one line principal to the transfer pricing provisions then it is benchmarking of international transactions entered with associated enterprises with comparables transactions (interna...

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International Tax Deal For Digital Age, Finally

Income Tax - With the declaration of final tax system reformation on 10th August 2021, by 136 countries and jurisdictions representing 90% of global GDP, you may be happy to know that Multinational Enterprises (MNEs) will be subject to a minimum 15% tax rate from 2023 and that this deal would embark on distribution of US D 125 […]...

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Foreign Tax credit- How to claim and remember to file Form 67

Income Tax - With globalization, people and corporates venturing abroad for work and to explore foreign markets is common. This brings a need to pay taxes on income earned in foreign countries. The question is, if an Indian resident earns income and pays taxes abroad, can he claim credit of the taxes paid in foreign countries and if […]...

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Target marketing on overseas social media or automated advertising platforms not taxable as ‘Royalty’

Income Tax - Target marketing on overseas social media or automated advertising platforms not taxable as ‘Royalty’ In a major relief to taxpayers availing online marketing services from social media platforms like Facebook, the Bangalore bench of Income Tax Appellate Tribunal (ITAT) recently ruled in the case of Urban Ladder Home Décor Soluti...

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Foreign Tax Credit in Case of Income from United States (US)

Income Tax - We often come across with cases where there has been double taxation on the same income both from source and resident countries. Typically from an India tax perspective, in case of ‘resident and ordinarily resident’ (ROR) having investments abroad, this scenario is quite common. In order to mitigate such double taxation implications, ...

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ICRICT Open letter to G20 Heads of State and Government

Income Tax - Eight years ago, you mandated the OECD to address corporate tax avoidance by multinationals, which cost countries at least $240 billion a year in lost fiscal revenues. After years of negotiations including 140 countries, the agreement announced last Friday shows that it is finally possible to change a system that was built one hundred yea...

Read More

Cases pertaining to ‘Pandora Papers’ to be investigated

Income Tax - On 3rd October, 2021, the International Consortium of International Journalists (ICIJ) has come out with what is claimed to be a 2.94 terabyte data trove that exposes the offshore secrets of wealthy elites from more than 200 countries and territories....

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Rejection of Foreign Tax Credit For Delay/Non-filing of Form 67

Income Tax - Bombay Chartered Accountant’s Society has made a representation to CBDT Chairman and draw his  attention towards the difficulties faced, in recent times, by resident taxpayers, in claiming Foreign Tax Credit (FTC) for their income abroad, while filing their return of Income in India. Full Text of their representation is as follows:...

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Cabinet approves Agreement with Saint Vincent for Tax Information exchange

Income Tax - The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved anAgreement between the Republic of India and Saint Vincent and The Grenadines for the Exchange of Information and Assistance in Collection with respect to Taxes....

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Background Material of Diploma in International Taxation

Income Tax - Background Material of Diploma in International Taxation (2020 – Fifth edition) containing: -International Tax – Transfer Pricing -International Tax – Practice (Part I & II) Tax laws in India are becoming more and more complex. Globalization of economies, signing and review of free trade agreements, increase in the number of...

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Royalty received under BREW Operator agreement not taxable under India-US DTAA

Qualcom Technologies Inc. Vs DCIT (ITAT Delhi) - Qualcom Technologies Inc. Vs DCIT (ITAT Delhi) ITAT held that Considering the assessment order of the AO wherein he has followed the findings given in earlier assessment years and considering the fact that the same agreement is being carried on since A.Y.2005-06, we do not find any reason in differi...

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TP: Unilateral action without agreement or understanding cannot be termed as a transaction

Perfetti Van Melle India Pvt Ltd. Vs ACIT (ITAT Delhi) - Perfetti Van Melle India Pvt Ltd. Vs ACIT (ITAT Delhi) Thus, in order to be characterized as an ‘international transaction’, it would have to be demonstrated that the transaction arose pursuant to an arrangement, understanding or action in concert. A ‘transaction’, per se involves a bilatera...

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Fixed placed PE or agency placed PE in India is must to determine taxability

DCIT Vs Western Union Financial Services Inc. (ITAT Delhi) - In present facts of the case, the Hon’ble Tribunal relied upon the previous Judgments passed in the assesse own case and have observed that agents of the assessee did not have the necessary authority to conclude the contracts of the assessee and, on that premise, it was held that there is no agenc...

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Comparable having extraordinary financial event of M&A cannot be considered for TP analysis

Optiva India Technologies Private Limited Vs DCIT (ITAT Pune) - ITAT held that in case A comparable having an extraordinary financial event of Merger and Acquisition (M& A) during the year the same cannot be considered as functionally comparable for transfer pricing (TP) comparability analysis....

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Corporate guarantee for supplies to AE in Singapore Falls under TP

Inflow Technologies Private Limited Vs ACIT (ITAT Bangalore) - Inflow Technologies Private Limited Vs ACIT (ITAT Bangalore) The assessee, as a part of share purchase agreement, during the business structuring had given a corporate guarantee to one of its group supplier CISCO for supplies made to its AE (Inflow Singapore). According to the assessee, it did not i...

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CBDT notifies amendment in Rule 10DA, 10DB & Form No. 3CEAB

Notification No. 31/2021-Income-tax [G.S.R 250(E).] - (05/04/2021) - Vide Notification No. 31/2021-Income-tax Dated 5th April, 2021 CBDT notifies amendment in Rule 10DA which deals with Maintenance and furnishing of information and document by certain person under section 92D, Rule 10DB which deals with Furnishing of Report in respect of an International Group & ...

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CBDT notifies Provisions of DTAA between India & Iran

Notification No. 29/2021-Income-tax [S.O. 1442(E).] - (01/04/2021) - CBDT notifies Agreement Between The Government Of The Republic Of India And The Government Of The Islamic Republic Of Iran For The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income. Notification No. 29/2021-Income-tax Dated 1st April, 2021. MINISTRY OF...

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Mutual Agreement Procedure (MAP) Guidance by CBDT

MAP GUIDANCE/2020 - (07/08/2020) - Though erstwhile rules 44G and 44H were in existence for a number of years, detailed information regarding MAP processes and guidance on issues related to such processes were not available in a comprehensive and consolidated manner....

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Clarification in respect of residency – section 6 of Income-tax Act, 1961​

Circular No. 11/2020-Income Tax / Release ID: 1622386 dated 09/05/2020 - (08/05/2020) - CBDT issues Circular No. 11 of 2020 and excluded period of forced stay in India from 22nd March, 2020 to 31st March, 2020 in computation of residential status in India for Financial Year 2019-20. Circular No. 11 of 2020 F. No. 370142/18/2020-TPI, Government of India Ministry of Finance Department of...

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CBDT notifies Protocol Between India And Austria

Notification No. 22/2020-Income Tax [S.O. 1370(E)] - (24/04/2020) - Protocol Between The Government Of The Republic Of India And The Government Of The Republic Of Austria Amending The Convention For The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income, Which Was Signed At Vienna On 8 November, 1999...

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Recent Posts in "international taxation"

Royalty received under BREW Operator agreement not taxable under India-US DTAA

Qualcom Technologies Inc. Vs DCIT (ITAT Delhi)

Qualcom Technologies Inc. Vs DCIT (ITAT Delhi) ITAT held that Considering the assessment order of the AO wherein he has followed the findings given in earlier assessment years and considering the fact that the same agreement is being carried on since A.Y.2005-06, we do not find any reason in differing with the view taken by […]...

Read More

Role of Working Capital Adjustments in Transfer Pricing

Transfer pricing provisions was incorporated in the Income Tax Act in April 2001 and now it has travel the journey of almost two decades in India. If we give one line principal to the transfer pricing provisions then it is benchmarking of international transactions entered with associated enterprises with comparables transactions (interna...

Read More
Posted Under: Custom Duty |

International Tax Deal For Digital Age, Finally

With the declaration of final tax system reformation on 10th August 2021, by 136 countries and jurisdictions representing 90% of global GDP, you may be happy to know that Multinational Enterprises (MNEs) will be subject to a minimum 15% tax rate from 2023 and that this deal would embark on distribution of US D 125 […]...

Read More
Posted Under: Custom Duty |

Foreign Tax credit- How to claim and remember to file Form 67

With globalization, people and corporates venturing abroad for work and to explore foreign markets is common. This brings a need to pay taxes on income earned in foreign countries. The question is, if an Indian resident earns income and pays taxes abroad, can he claim credit of the taxes paid in foreign countries and if […]...

Read More
Posted Under: Custom Duty |

ICRICT Open letter to G20 Heads of State and Government

Eight years ago, you mandated the OECD to address corporate tax avoidance by multinationals, which cost countries at least $240 billion a year in lost fiscal revenues. After years of negotiations including 140 countries, the agreement announced last Friday shows that it is finally possible to change a system that was built one hundred yea...

Read More
Posted Under: Custom Duty |

Cases pertaining to ‘Pandora Papers’ to be investigated

On 3rd October, 2021, the International Consortium of International Journalists (ICIJ) has come out with what is claimed to be a 2.94 terabyte data trove that exposes the offshore secrets of wealthy elites from more than 200 countries and territories....

Read More
Posted Under: Custom Duty |

TP: Unilateral action without agreement or understanding cannot be termed as a transaction

Perfetti Van Melle India Pvt Ltd. Vs ACIT (ITAT Delhi)

Perfetti Van Melle India Pvt Ltd. Vs ACIT (ITAT Delhi) Thus, in order to be characterized as an ‘international transaction’, it would have to be demonstrated that the transaction arose pursuant to an arrangement, understanding or action in concert. A ‘transaction’, per se involves a bilateral arrangement or contract between the pa...

Read More

Fixed placed PE or agency placed PE in India is must to determine taxability

DCIT Vs Western Union Financial Services Inc. (ITAT Delhi)

In present facts of the case, the Hon’ble Tribunal relied upon the previous Judgments passed in the assesse own case and have observed that agents of the assessee did not have the necessary authority to conclude the contracts of the assessee and, on that premise, it was held that there is no agency PE of  assessee in India and therefor...

Read More

Comparable having extraordinary financial event of M&A cannot be considered for TP analysis

Optiva India Technologies Private Limited Vs DCIT (ITAT Pune)

ITAT held that in case A comparable having an extraordinary financial event of Merger and Acquisition (M& A) during the year the same cannot be considered as functionally comparable for transfer pricing (TP) comparability analysis....

Read More

Target marketing on overseas social media or automated advertising platforms not taxable as ‘Royalty’

Target marketing on overseas social media or automated advertising platforms not taxable as ‘Royalty’ In a major relief to taxpayers availing online marketing services from social media platforms like Facebook, the Bangalore bench of Income Tax Appellate Tribunal (ITAT) recently ruled in the case of Urban Ladder Home Décor Soluti...

Read More
Posted Under: Custom Duty |

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