Relaxation from application of indirect transfer provisions to alternative investment funds

The transfer of share or interest in a foreign company or entity deriving substantial value from assets located in India is taxable in India. However, where such transfer outside India is a consequence of a direct redemption or sale of an investment in India which is chargeable to tax in India, application of indirect transfer … More Relaxation from application of indirect transfer provisions to alternative investment funds

Blockchain technology: Possible future of digital transfer pricing

Change is certain, and the digital world is changing exponentially. It started with smartphones, which impacted the masses and led to the emergence of smart lives. As digitization and automation continue, it is now the time for smart businesses. Among many fast-emerging disruptive technologies, blockchain technology seems to have the potential to revolutionize businesses and … More Blockchain technology: Possible future of digital transfer pricing

Taxation in digital economy, making way legally

Digitalization of the global economy has happened at a tremendous pace and a large scale, permeating almost all areas of society. However, emergence of new business models have made it harder to tax businesses possessing a digitalized value chain. Conventional source allocation rules related to brick and mortar structures are not apt for the digital … More Taxation in digital economy, making way legally

Master file notification: Expectations, impact and risk areas for MNCs

The Organisation for Economic Co-operation and Development (OECD) commenced work on the Base Erosion and Profit Shifting (BEPS) project to address concerns that existing principles of domestic and international taxation were failing to keep pace with the global nature of modern business models. As a member of the G20 and an active participant in the … More Master file notification: Expectations, impact and risk areas for MNCs

Developments in International Tax: An update and its impact

OECD proposes changes to be incorporated in the 2017 update to the OECD Model Tax Treaty  The Organisation for Economic Co-operation and Development (OECD) on 11 July 2017 released the draft contents of the update to the OECD Model Tax Convention (the 2017 update). Among a number of other proposals, the 2017 update contains changes … More Developments in International Tax: An update and its impact

The Multilateral Instrument and the future of bilateral tax treaties

Tax treaties are based on a set of common principles designed to eliminate double taxation that may occur in the case of cross-border trade and investments. The current network of bilateral tax treaties dates back to the 1920s and the first Model Tax Convention developed by the League of Nations. The Organisation for Economic Co-operation … More The Multilateral Instrument and the future of bilateral tax treaties

The evolution and rethink of the Permanent Establishment concept as a consequence of BEPS

Formulating anti-BEPS (Base Erosion and Profit Shifting) measures for cases where companies were deemed to not have a Permanent Establishment (PE) despite substantial business activity, was a key priority for the Organisation for Economic Cooperation and Development (OECD) in its BEPS project. Recommendations and outcomes from the OECD Action Plan 7 of the BEPS project, … More The evolution and rethink of the Permanent Establishment concept as a consequence of BEPS

Global mobility and evolving changes

 Globalization has brought about a boom in the movement of employees to different countries to acquire specialized technical skill and expertise. Over the years, we have seen organizations coming out with various assignment models to send their employees abroad. This trend offers many benefits to employees apart from bolstering their career and creating an international … More Global mobility and evolving changes

Taxation of buybacks by unlisted companies: a step toward greater clarity?

Buyback tax (BBT) provisions were introduced in the Income Tax Laws (ITL) in 2013 to check tax avoidance by unlisted companies, which resorted to buyback of shares instead of dividend distribution, particularly where the buyback distribution proceeds were tax-exempt for overseas shareholders under the treaty network. BBT is payable by domestic unlisted companies in the … More Taxation of buybacks by unlisted companies: a step toward greater clarity?

‘Avoid cess, increase GST peak rate’

 India’s GST journey is in its critical phase with GST Council debating important issues like rate structure, administrative ease and GST law. Multiple rate structure is the pragmatic way forward, and aligned to what CEA report indicated. While debate around what will fall in which rate basket continues, it’s important we have consistent classification across … More ‘Avoid cess, increase GST peak rate’

Can GST effectively guide the e-commerce package?

India is on the verge of going live with the long over-due indirect tax reform, the introduction of Goods and Service Tax (GST). Despite certain delays, the Constitutional Amendment Act which empowers the Center and State to simultaneously tax the same transaction was enacted in September 2016. In the run-up to the target date of … More Can GST effectively guide the e-commerce package?

Big changes for small units under GST

Through this article, V.S Krishnan, Advisor, Tax Policy Group, EY India (Former member of CBEC) shares his view on how expenditure switching from tax incentives to infrastructure spending could benefit small and medium units as a whole.
Further, he opines that irrespective of big or small units, the self-policing mechanism provided by the GST design and tracking of every transaction by the GSTN system will ensure a more level playing field for all.

More Big changes for small units under GST

India’s looming Goods and Services Tax (GST): considerations for the pharmaceutical industry

GST is expected to transform the Indian economy in the medium to long term. The new GST framework would result in the development of a common Indian marketplace, reduce the cascading effect of multiple layers of taxes and increase revenue buoyancy for the Central Government (Government) and most of the state governments. By leveraging an … More India’s looming Goods and Services Tax (GST): considerations for the pharmaceutical industry

Has GST dialled the right number?

Over the past few months, there has been significant progress on Goods and Services Tax (‘GST’). GST is the most significant indirect tax reform proposed to be implemented in the history of Independent India.  A GST regime aligned with overall objectives of removing the cascading, unifying the Indian market, simplifying administration and compliances and ease … More Has GST dialled the right number?

GST may resolve the dual taxation impact on Media & Entertainment sector

The media and entertainment (M&E) sector has seen overall growth in all the segments, driven by rapidly rising incomes and evolving lifestyles. However, the M&E sector is plagued by multiple taxes at each level of the supply chain, leading to a complex tax structure with tax compliances at the Union, state and municipal levels.