Will the Government’s “digital” agenda fund the much-anticipated tax cuts in this Budget?

Like every other year, there are a number of “asks” the country (both individuals and corporates) may have from the Finance Minister this Budget — reducing corporate tax rates, doing away with dividend distribution tax and increasing the tax exemption limit to name a few. And as budgets go, something or someone may have to … More Will the Government’s “digital” agenda fund the much-anticipated tax cuts in this Budget?

Expecting a populist Budget 2018? FM’s hands could be tied by fiscal constraints

The Finance Minister is in an unenviable position of having to meet multiple expectations ranging from that of corporates or businesses seeking “relief” after GST implementation The country is abuzz with discussions around the upcoming National Budget to be presented by the finance minister (FM) on February 1, 2018. Since we Indians are an opinionated … More Expecting a populist Budget 2018? FM’s hands could be tied by fiscal constraints

Transfer pricing in 2017 and what it means for the future

Till a few years ago, the Union Finance Budget used to be the country’s signature tax event of the year. However, the recent past has seen tax-related changes roll in through the year, so much so that every month has taxpayers understanding and debating new developments, thereby consigning the Budget to a lower pedestal. The … More Transfer pricing in 2017 and what it means for the future

Place of Effective Management – Decoding UK’s Development Securities decision in the Indian context

Determination of tax residence based on the Place of Effective Management (PoEM) has been in force in India since April 2016, with guidance and clarification from tax authorities issued in January 2017. The guidance[1] has shed more light on cases that the Government intends to cover within the ambit of the PoEM regulations. However, as … More Place of Effective Management – Decoding UK’s Development Securities decision in the Indian context

India’s position on the “2017 OECD update”: Deviating from an international consensus?

Recently, OECD released an update to the OECD model convention and commentary (“2017 update”). The 2017 update largely consists of amendments agreed upon as part of the BEPS project and follow up work thereon. In addition, it incorporates certain other changes that were released for public comments previously and finalized now. It also contains the … More India’s position on the “2017 OECD update”: Deviating from an international consensus?

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