GST audit – it is the time to reconcile

India has experienced the completion of its first financial year of the much-awaited Goods and Services Tax (GST) from 1 July 2017 to 31 March 2018. This contemporary regime held high aspirations digitally by mandating taxpayers to undertake transaction-level reporting of its business on to its information technology/Goods and Services Tax network (IT/GSTN) platform. It … More GST audit – it is the time to reconcile

Protocol amending India-China DTAA: Embracing the change!

India and China are two of the world’s oldest civilizations. Cultural and economic relations between China and India date back to ancient times. Despite political issues over the years, the relations between India and China have steadily improved and strengthened in various fields of mutual interest. Indian Prime Minister Narendra Modi and Chinese President Xi … More Protocol amending India-China DTAA: Embracing the change!

Can tax treaties be used to create a tax liability?

In India, it is a settled principle of law that the tax treaties cannot create more onerous obligations or liabilities independent of enabling provisions under the domestic law. As such, where any income is exempt under the provisions of domestic tax law, the tax treaty cannot create a fresh tax liability. Internationally, most of the … More Can tax treaties be used to create a tax liability?

Softening the GAAR blow, Canada style: A case study on adopting a nuanced approach to GAAR principles

General Anti-Avoidance Rules (GAAR) represents a set of rules that provide a tax authority the power to deny tax benefits when an arrangement is undertaken without any commercial purpose or substance (i.e., when the arrangement is planned to generate a tax benefit). GAAR, especially the Indian GAAR, is not limited in its application to specified … More Softening the GAAR blow, Canada style: A case study on adopting a nuanced approach to GAAR principles

Unfolding the ESOPs’ taxation conundrum

Employees’ Stock Option Plans (ESOPs) form an integral part in the overall reward framework of an organization. In a typical ESOP, the company grants options to the employees. These options vest over a period of time, subject to certain conditions. On fulfilment of the vesting conditions, the employees get the right to exercise the options … More Unfolding the ESOPs’ taxation conundrum

SQL redefined: Silver lining or double-edged sword

TP litigation in India High-pitched transfer pricing (TP) assessments have been in headlines in India for about a decade now. The first round of TP assessments commenced during financial year (FY) 2004-05 and since then, the number of cases scrutinized and the quantum of TP adjustments have been rising with TP adjustments of approximately US$10.8 … More SQL redefined: Silver lining or double-edged sword