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Deloitte India Tax Publications

Delve into industry-specific updates, explore the interplay of tax-technology in business, learn about the global tax landscape, and much more.

2019

April

Authority for advance rulings in indirect taxes

Deloitte is pleased to announce the release of its white paper on the advance ruling authority in relation to indirect taxes in India. This paper discusses the evolution of the advance ruling mechanism in India, attempts a critical analysis of its functioning and, in the light of the experience gained, explores measures that could enhance its effectiveness.

This white paper draws on Deloitte’s extensive international knowledge, experience of the Authority for Advance Rulings (AAR), and best practices in the operation of such arrangements. It also analyses the present working of the AAR in India.

Settlement of Indirect Tax Disputes – Seize the opportunity

GST regime has replaced the plethora of indirect taxes levied by States and the Central Government. However, there is a huge backlog of appeals pending across various levels and under different statutes, both at State and Central level. This has a dual negative impact, on one hand there is a working capital blockage as well as increasing cost of litigation in the hands of the assesse/dealer/taxpayer and on the other hand, thousands of crores of revenue in taxes are blocked for the State and Centre.

Different types of schemes are being announced by various States with the basic objective of  mobilizing collection of revenue, mitigating existing litigation and reducing the workload on the departmental staff so as to concentrate on stabilizing GST mechanism.

March

Building the tax function of tomorrow—today

The tax function is no longer all about compliance. Cognitive technologies and new digital models are driving changes in how tax leaders are looking to the future, aiming to add both value and transparency.

Exploring the new investment world of REIT

Real Estate Investment Trusts (REITs) are companies that own or finance income-producing real estate in a range of property sectors. They provide all investors the chance to own valuable real estate, present the opportunity to access dividend-based income and total returns, and help communities grow, thrive and revitalise.

February

Technology, Media, and Telecommunications: Tax Landscape

We are delighted to introduce you to our special tax publication for the Indian Telecommunication, Media, and Technology (TMT) industry.

Income-tax Controversies: A Thought Paper

This thought paper deals with the following subjects:

  1. Intangibles and Disallowance of Advertisement Marketing Promotion (AMP) Spends.
  2. India Inbound Secondment of Employees: Is it a Case of Rendering Services?
  3. Digitalised Businesses: Tax Characterisation Issues
  4. Intra Group Charges: Transfer Pricing Considerations
  5. Restricting the transfer pricing adjustment only to the value of “international transactions”.
  6. Situations in which Income Tax Appellate Tribunal (ITAT) can remand back (Sony and Kodak decisions).
  7. Section 14A disallowances
  8. Using MAP/APA for non-covered years
  9. Profit split method – transfer pricing considerations

Each subject briefly describes the issue, the contrary views, challenges, and our thoughts on the same.

The Minimum Alternate Tax (MAT) on Companies

The Alternative Minimum Tax (AMT) is a provision introduced in direct tax laws to limit the tax deductions/exemptions otherwise available to taxpayers so that they pay a “minimum” amount of tax to the government.

Insolvency and Bankruptcy Code

While the Goods and Service Tax (GST) has been widely described as independent India’s biggest tax reform after the economic liberalisation of 1991, the Insolvency and Bankruptcy Code (Code), yet another landmark contemporary law, is just beginning to be assessed for efficacy. Rightly hailed as an important legislative reform, the Code is expected to resolve the prevailing nonperforming assets (NPA) crisis, the resultant logjam in availability of credit, and the consequential impact on growth.

Ind AS 115 - Revenue from contracts with customers

The Ministry of Corporate Affairs (MCA) notified 39 Indian accounting standards (Ind AS) on 16 February 2015. These standards include Ind AS 115, which was converged with the International Financial Reporting Standards (IFRS) 15. Following the deferral of IFRS 15 to 1 January 2018, the MCA also deferred the application of Ind AS 115 on 30 March 2016, and issued Ind AS 11 (construction contract) and Ind AS 18 (revenue recognition).

Glimpses of the Interim Budget 2019

Catch up on important updates and highlights from the India Interim Budget 2019 presented by the government on 1 February 2019. The government has set out a comprehensive ten-dimensional vision to create a modern, technology driven, high growth, equitable and transparent India by 2030. The proposed amendments have been positively received by the industry and the common man. Enhancement of standard deduction for the salaried class and tax exemption for all taxpayers deriving income upto INR 5 lakhs a year will provide some relief to the middle class. The budget also has a range of provisions that factor economic support for the small farmers/marginalised sections. The budget proposal is touted to boost economic growth and demand buoyancy in the economy.

January

Global Powers of Retailing 2019

Welcome to the 22nd edition of Global Powers of Retailing. The report identifies the 250 largest retailers around the world based on publicly available data for FY2017 (fiscal years ended through June 2018), and analyzes their performance across geographies and product sectors. It also provides a global economic outlook, looks at the 50 fastest-growing retailers, and highlights new entrants to the Top 250.

Our digital future - A perspective for tax professionals

The next five years will be a period of significant technological advancement for professional services including the tax arena. It is hard to predict precisely what new developments will emerge but we can look to current and recent trends to guide our predictions for the future digital landscape and the ways in which it will impact the profession.

Issues surrounding business travellers

Global business travellers potentially trigger compliance and withholding obligations. These can be multiple obligations (income tax, social security, immigration, and corporation tax), which can impact at either, or both the individual and the corporate level. Different tests apply to different taxes and places, but broadly all traveling employees making more than just an occasional annual visit increase these exposures.

Deloitte Business Travel Advantage

Deloitte has a dedicated global team working on analytics research and development for our client base across the mobility, talent and rewards subject matter area. We provide a range of services from consultancy to clients who wish to build and maintain their own solutions, through to the deployment of bespoke analytics dashboards and other technology solutions which are designed, built and also maintained by Deloitte. We are able to host secure technology solutions on behalf of our clients, managing the entire process from acquisition of data through to creation of insight support for your stakeholders.

Global payroll management

Over the past decade, international employee movement has significantly grown. With economies, knowledge, capital, trade and technology being highly interconnected, no business can survive without a global connection. Hence, there is a greater need for talent movement to ensure that the right people are available for the required jobs at the right places and at the right time.

Global Tax Reset - Transfer Pricing Documentation Summary

Deloitte's Transfer Pricing practice has prepared the Global Tax Reset - Transfer Pricing Documentation Summary, which compiles essential country-by-country reporting and documentation information (including master file/local file information, if applicable) for 79 jurisdictions around the world.

2018

November

Decoding National Digital Communications Policy (NDCP) 2018

The policy focuses on creating a roadmap for emerging technologies such as 5G, Artificial Intelligence, Robotics, Internet of Things, Cloud Computing and M2M by simplifying licensing and regulatory frameworks and ensuring appropriate security frameworks. Experiments with new technologies are unable to gain momentum because of the regulatory hurdles for operating in India. The policy seeks to remove regulatory challenges and create attractive investment opportunities in new technology segments and stimulate the deployment of new technologies in India.

The policy supports the growth of telecom sector in India which has constantly been in financial crisis. The implementation of the policy will unleash multiple opportunities for telecom service providers, internet service providers, infrastructure providers, handset and equipment manufacturers, satellite communication providers, academic community, the innovators and start-ups.

October

Financial Transfer Pricing Services - Changing Landscape

Consumer businesses are witnessing evolutionary changes in India. Frequent disruptions in the retail, FMCG and e-commerce sectors have become a norm. These evolutions, driven by technology and changing consumer shopping behavior, present lucrative opportunities in the consumer markets not only for traditional players but also for multi-national brands and modern & upcoming consumer companies. The retail, FMCG and e-commerce sectors in India provide a vast scope of improvement throughout their value chains – from sourcing, manufacturing, packaging and distribution to logistics and delivery. The time is thus ripe for witnessing the true potential of growth in this sector.

Consumer LEADS

Consumer businesses are witnessing evolutionary changes in India. Frequent disruptions in the retail, FMCG and e-commerce sectors have become a norm. These evolutions, driven by technology and changing consumer shopping behavior, present lucrative opportunities in the consumer markets not only for traditional players but also for multi-national brands and modern & upcoming consumer companies. The retail, FMCG and e-commerce sectors in India provide a vast scope of improvement throughout their value chains – from sourcing, manufacturing, packaging and distribution to logistics and delivery. The time is thus ripe for witnessing the true potential of growth in this sector.

Indian Advance Pricing Agreement Programme Evaluation and Way Forward

This tax policy paper, is an attempt to evaluate and provide the way forward with an objective to improve and bring robustness to the APA programme. The paper provides more than 22 recommendations, covering procedural aspects of the APAs, post-compliance procedure of APAs, and also on legal and other aspects. Hope the paper brings some important takeaways for tax policy group and taxpayers, and helps in taking a step further to improve the ‘Ease of Doing Business’ - by providing further tax certainty.

Emerging trends in BEPS arena

Indian tax landscape has seen radical changes with renegotiation of its tax treaties, introduction of buyback tax, introduction of equalisation levy, limiting interest deduction, phasing-out of tax holidays, introduction of GAAR and, more recently, revision of agency PE definition and introduction of Significant Economic Presence. Follow emerging trends in BEPS arena.

August

Trends in Transfer Pricing - Global Research Bulletin

This global research bulletin provides an updated snapshot of the current state of Transfer Pricing as well as anticipated future trends.

Tax Incentives for Savings Adjusting for changes in work-life

Capture analysis on key recommendations regarding tax incentives for long-term savings for meeting the flexible employment structure through a working life. 

July

Next-generation family businesses

From 8 January to 28 February, 2018, the Deloitte Family Business Center polled 575 next-generation family business leaders in 52 countries through an online survey.

June

Operational Transfer Pricing

While many companies maintain a firm focus on the "plan," "manage," and "resolve" phases, less emphasis is often placed on the "streamline" phase of the lifecycle, commonly referred to as Operational Transfer Pricing (OTP). Incorrectly recorded outcomes are increasingly a target of tax authorities and the main cause of adjustments in most tax audits. Aligning all elements of the Transfer Pricing lifecycle—policy, documentation, and tax authority interaction—with OTP is essential.

Future of the Deal

After four consecutive years of crossing the $3 trillion annual mark, the M&A market continues to surpass expectations, it crossed the $1 trillion mark within the first three months of 2018, the fastest ever pace.

April

International Tax India Highlights

With rapid changes in the global tax landscape, it is important to be on top of latest developments affecting cross-border business. 

Taxation and Investment in India

2018 Taxation and Investment guide discusses investment climate, ease of setting up business, corporate taxation, withholding taxes, indirect taxes, personal taxation, and other key developments, across countries.

Petroleum Tax Guide

The Petroleum Tax Guide 2018 is a handbook of tax provisions and incentives for exploration and production of Petroleum.

The Evolving Energy Landscape in India

The report provides a detailed view of the Indian energy landscape (power, oil & gas, renewable energy), featuring economic overview, megatrends shaping the industry and the opportunity areas for investment across the value chain in the sector.

Febraury

Know Your Budget 2018 - Detailed analysis

The Government’s agenda of ‘Transform, Reform and Perform’ in the budget focuses on implementation of the recent reforms. Hence there are no big bang announcements. The budget addresses needs of agricultural sector and MSMEs, through which agenda of inclusive growth, formalization of economy and boost employment generation is targeted to be realized. The FM’s promise of reducing corporate tax rate from 30 percent to 25 percent for companies remains limited to the MSMES leaving the large tax payers to wait for another year. However, 99% of MSME’s with turnover of upto Rs 250 crores would benefit from the rate reduction. Unfortunately, the large corporates will now carry a slightly higher tax burden from an increase cess of 1 percent. Rationalization of Long term capital gain taxation may be inopportune in terms of timing as their ability to raise funds through IPOs and FPOs may be impacted due to market sentiments changing.

Union Budget 2018 | Glimpses

The Government’s agenda of ‘Transform, Reform and Perform’ in the budget focuses on implementation of the recent reforms. Hence there are no big bang announcements. The budget addresses needs of agricultural sector and MSMEs, through which agenda of inclusive growth, formalization of economy and boost employment generation is targeted to be realized. The FM’s promise of reducing corporate tax rate from 30 percent to 25 percent for companies remains limited to the MSMES leaving the large tax payers to wait for another year. However, 99% of MSME’s with turnover of upto Rs 250 crores would benefit from the rate reduction. Unfortunately, the large corporates will now carry a slightly higher tax burden from an increase cess of 1 percent. Rationalization of Long term capital gain taxation may be inopportune in terms of timing as their ability to raise funds through IPOs and FPOs may be impacted due to market sentiments changing.

Union Budget 2018 | Understanding the impact on Foreign Portfolio Investors

The Indian Finance Minister presented the Union Budget 2018. The budget was presented against the backdrop of slower economic growth, rising crude oil prices and growing protectionist tendencies in some countries. The GDP growth for the current fiscal year (April 2017 to March 2018) is estimated to be around 6.5% as compared to the growth rate of over 7% registered in last 3 financial years. The slower economic growth is generally attributed to the recent bold reforms undertaken by the government including implementation of Goods and Services Tax (GST) regime to replace the multiple indirect taxes and demonetization of higher currency notes aimed at removing black money from the economy.

Union Budget 2018 - Base Erosion and Profit Shifting

For past few years, the Organisation for Economic Cooperation and Development [OECD] and G20 countries have actively worked on the base erosion and profit shifting [BEPS] project. BEPS refers to tax planning strategies that exploit gaps and mismatches in tax rules to make profit ‘disappear’ for tax purpose or to shift profits to locations where there is little or no real activity but taxes are low, resulting in little or no overall corporate tax being paid. In light of several such instances resulting in BEPS, the G20 and OECD released their recommendation on 15 BEPS action plans (15 action plans) on 5 October 2015.

International Tax Review - Intangibles Guide

Welcome to International Tax Review’s guide to intangible assets, published in association with Deloitte. Intangible assets are as central to the business function as steam-powered machines were during Industrial Revolution. Despite the evolution of businesses since the 18th century, modern business is still governed by historic tax laws.

Tax governance in the world of Industry 4.0

Industry 4.0 has rapidly become a global priority for enterprises and governments alike due to multiple benefits.

2018 BEPS global survey

This is the fifth year that Deloitte has conducted the "OECD Base Erosion and Profit Shifting (BEPS) survey." The objective of this annual survey has been to gauge the views of multinational companies regarding the Global Tax Reset and the OECD's Base Erosion and Profit Shifting (BEPS) initiative, and the expected impact on their organizations. The 2018 survey focused on understanding how multinationals' perspectives on BEPS and the tax landscape have evolved. The final 2018 survey results are below.

Full and summary survey results are available for download

Full 2018 BEPS survey results

Summary 2018 BEPS survey results

2018 BEPS survey results white paper

Infographic

US Tax Law Reform – An Overview

On December 22, 2017, the US President signed into law a massive tax reform package which lowers tax on companies, pass-through entities, individuals, and estates and move the US toward a participation exemption system for taxing foreign-source income of domestic multinational corporations.

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