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Deloitte India Tax webcasts

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Click here to register for the upcoming India TaxHour session. India TaxHour is a quarterly tax update webcast series.

Implications of the Corporate tax rate cut

Date: 24 October 2019

Time: 11:30 a.m. – 12:30 p.m. IST

To promote growth and investments in the Indian economy, the Government has made several amendments in its tax laws on 20 September 2019, that are effective immediately. Landmark changes have beeintroduced in the form of steep reduction in the corporate tax rates both for companies engaged in manufacturing activities as well as non-manufacturing activities provided they forego any tax incentives or reliefs that they have been availing hitherto. Some of these choices are irrevocable options. There are related deferred tax and accounting issues that may also have significant reporting implications as these options are availed. It is imperative that taxpayers evaluate their tax positions in light of the reforms and the choices to elect or not to elect or the timing of election for the revised tax provisions.

We will discuss:

  • The new concessional tax regime for domestic manufacturing companies.
  • The new concessional tax regime for companies in general.
  • Change in tax rates or surcharge, related implementation and reporting issues arising from these

Join us in this session to keep on top of India’s changing tax laws and their potential implications on your organisation.

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India Taxation Laws (Amendment) Ordinance, 2019

Date: 3 October 2019

Time: 11:30 a.m. – 12:30 p.m. IST

With the objective of promoting growth and investments in the Indian economy, India has made several amendments in its tax laws on 20 September, effective immediately. Landmark changes have been introduced in the form of steep reduction in the corporate tax rates both for companies engaged in manufacturing activities as well as non-manufacturing activities provided they forego any tax incentives/reliefs that they have been availing hitherto. The much anticipated roll back of the enhanced surcharge on Foreign Portfolio Investors as well as grandfathering of buybacks by listed companies from the applicability of buyback tax for buyback announcements prior to 5 July 2019 have also been made. It is imperative that taxpayers evaluate their tax positions in light of the reforms and the choices to elect or not to elect for the revised tax provisions. We'll discuss:

  • The new concessional tax regime for domestic manufacturing companies.
  • The new concessional tax regime for companies in general.
  • Change in tax rates/surcharge.

Learn about how India's tax laws are changing and explore actions your business can take to prepare.

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Previous webcasts

Europe immigration – Trends and developments | 18 September

This webcast will be presented by Deloitte subject matter experts from India and Europe.

Global and Indian multinationals have been increasingly transferring their resources from India to Europe. We are also observing increased intra-Europe movement of this talent.

Political developments, complex business environment and regulatory changes are resulting in new requirements in immigration regulations, more stringent visa approval processes and stretched processing timelines, which is in turn affecting the resource deployment. Employers in the meantime, face the added responsibility of tracking their employees’ movements across European countries.

Our speakers will specifically address:

  • Brexit and related aspects
  • ICT Permit and intra EU mobility
  • Posted Worker Directive
  • Evolving destinations within Europe in light of the above
  • Specific considerations, if any for Indian nationals

Recording of the session

Reinventing organizations to create value: Insights from Deloitte's 2019 Human Capital Trends Report | 17 September

A shift is underway as businesses go beyond corporate responsibility to become social enterprises, actively listening to the world around them to better understand and support their stakeholder networks. With a unique blend of cultures and practices in Asia, what trends are unfolding and what steps are companies taking? We'll discuss:

  • Changes in the workforce, workplace, and the nature of work itself.
  • New applications of mobile and digital technologies and their impacts on organizations.
  • The growing demand for HR leaders and teams in Asia to be effective partners to the business.
  • Potential implications of these trends for organizations and individuals.

Gain insights from Deloitte professionals on how your organization can keep on top of the latest HR trends and prepare for what's next.

Tune in to the recording here.

Significant rulings under GST: Story so far and what lies ahead | 12 September

Anti-profiteering and advance ruling, two key limbs of the Goods and Services Tax (GST) framework, are perhaps the most debated and deliberated topics at present. 

While advance ruling assumes significance in the context of providing clarifications to ambiguities that taxpayers might have in relation to the new tax reform, the concept of anti-profiteering has been made part of India's indirect tax regime for the first time. Recently, there has been a spate of rulings pertaining to both the subjects, and emergence of additional complexities and confusion for taxpayers at large. 

Certain adverse orders by the National Anti-Profiteering Authority have seen widespread dissension in light of absence of a well-defined legislative framework to govern anti-profiteering investigations. On the other hand, a series of advance rulings pertaining to issues such as inter-office services, intermediary services, employer-employee transactions seem to violate the basic provisions of the GST law, and have therefore not meeting the very purpose of providing clarifications to taxpayers. In addition, it is important to assess the rationale adopted by the authorities in the context of the said anti-profiteering orders and advance rulings, as the same may be applied in case of other taxpayers. We'll discuss:

  • Key advance rulings and anti-profiteering orders.
  • Methodology and rationale adopted by the authorities.
  • Challenges to the relevant rulings and provisions.
  • The way ahead for industry.

Keep up to date with the latest developments regarding advance rulings and anti-profiteering in India and how they may affect your organization.

Tune in to the recording here.

Asset Reconstruction Companies (ARCs): Tax and regulatory framework | 29 August

Asset Reconstruction Companies (ARCs) were introduced in 2002 in India as an attempt to provide a framework for effective resolution and recovery of stressed assets. However, the law remained riddled with litigation with no meaningful resolution of bad loans taking place under its aegis. The law itself has been evolving to make it a true resolution vehicle. However, with the introduction of The Insolvency and Bankruptcy Code, 2016 (IBC), the landscape has changed entirely. ARCs are now at the forefront of the resolution process and foreign investor interest is high. We'll discuss:

 

  • Key regulatory changes in the ARC regime over the years.
  • What has IBC changed and how ARCs fit in.
  • Key tax and accounting aspects of transactions by ARCs and their trusts.

 

Tune in to our recording to stay up to date with the latest developments on the resolution framework in India.

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Uncovering the key aspects | 19 August

The Central Government’s amnesty scheme for resolution of legacy service tax and central excise disputes outstanding as on 30 June 2019 has become one of the much-talked-about announcements of the Union Budget 2019. It has created a buzz amongst tax fraternity and gained importance for the corporates because of the tax reliefs that it offers. With enactment of the Finance Bill 2019 recently, the Government paves the way forward for companies to take the benefits of the scheme. Flier and FAQs recently released by CBIC further simplifies the broader understanding of the scheme for general public. The scheme is expected to be notified shortly.

Broadly, the scheme will be attractive for companies with respect to following categories of tax disputes:

  • Those considered not strong on merits
  • Those where predictability of the outcome at a particular adjudicating or appellate level is unclear
  • Those where amounts involved are not significant

The benefits under the scheme include the following:

  • Waiver of interest and penalty
  • Immunity from prosecution
  • Partial tax relief on cases pending for adjudication or in appeal or under investigation and audit (where demand is quantified on or before 30 June 2019):
  • Declaration of tax dues under the scheme will not be treated as a precedent for past and future liabilities
  • Adjustment of pre-deposits already made in the matter

In short, this scheme offers scope for considerable reduction of tax costs besides waiver of interest and penalty. Further this helps the companies to reallocate resources locked in handling legacy issues to focus on GST management. The review of the scheme vis-à-vis pending disputes also assists in an overall review of disputes outside of the scheme, e.g., if proactive steps should be taken in conceding a dispute, paying an amount under protest.

All of the above and other nuances in the scheme have been discussed.

Recording of the session

Evolution of regulations impacting inbound/outbound investments in China, India, and Vietnam | 1 August 2019

The business landscape is changing globally like never before. In order to keep pace with the dynamic market scenario, various countries are bringing necessary changes to the existing law or introducing new regulations relevant to the issues faced. We have also witnessed how countries have amended their local laws in line with the BEPS action plan. Countries across the globe are also working towards implementing MLI based on the aspects adopted. Given the various changes in laws, these are closely being considered by the investors prior to making any investment decisions across jurisdictions. We'll discuss:

  • Various regulations that have been introduced which are critical to cross border investments.
  • Overview of the impact that is witnessed in making business decisions.
  • Key tax and regulatory considerations in relation to cross border investments.
  • Practical case studies.

Tune in to the recording to understand the evolution of various regulations and its impact on investment activities across the region.

Double tax treaties in Asia Pacific: Updates and developments | 16 July 2019

We will review the important major developments relating to Asia Pacific double tax treaties, major case law and administrative developments concerning the interpretation of double tax treaties, and significant OECD/UN developments relating to double tax treaties. We'll discuss:

  • The implementation of treaty-related BEPS recommendations and developments concerning the Multilateral Instrument in Asia.
  • An update on the work undertaken by the United Nations Tax Committee.
  • Important cases on treaty interpretation.
  • Recent changes within the Asia Pacific treaty network.

Tune in to the recording to learn about the important developments in Asia Pacific in regard to double tax treaties and OECD/UN projects.

Germany−India: Transfer pricing controversy, dispute, and mitigation | 16 July 2019

This webcast was presented by Deloitte transfer pricing partners and tax experts (former representatives of the tax administrations) from both Germany and India.

Multinational groups in both Germany and India have been suffering from double-taxation issues for quite some time. The revised stance of the Indian tax administration offers new possibilities for resolving such cases. The webcast’s focus was to provide insights into the operational and procedural framework of competent authority proceedings through Mutual Agreement Procedure (MAP), and Advance Pricing Agreement (APA) to mitigate and resolve disputes.

In the webcast “Germany−India: Transfer pricing controversy, dispute mitigation, and resolution”, the practical experiences of our tax experts on the following key topics was discussed:

  • Competent authority proceedings, including key processes, organisations, and interactions with tax authorities
  • Dispute resolution with potential possibilities for MAPs, along with the eligible years, statute of limitations, and regulatory framework in both the countries
  • Practical insights into a bilateral APA between Germany and India and conversion of the existing unilateral APA into a bilateral APA
  • Experiences in dealing with MAP, roll backs, and roll forwards of APA with a focus on possibility, timing, and negotiation approach of the competent authorities

Tune in to the recording to know more.

BEPS and Indian domestic tax law: Increased exposure to a Permanent Establishment (PE) | 11 June 2019

Amending the Agency PE definition and reducing the tolerance level of the "preparatory and auxiliary" activities to avail exemption from a PE, are key aspects of the Base Erosion and Profit Shifting (BEPS) project and the Multilateral Instrument (MLI) proposals that followed. In addition to putting out its MLI positions to align with BEPS recommendations, India has also amended its domestic tax law which is more expansive in scope. While Indian Courts do consider international OECD/UN guidelines, the defence of companies against PE will need to be based on actual activities on the ground. We'll discuss:

  • Certain typical situations such as the provision of marketing support services or commission models in relation to direct offshore sales of goods from outside India. 
  • The PE exposure on account of inbound expatriate employee's presence in India from group companies.
  • Practical case studies.

Tune in to the recording to gain insights on the significant developments concerning Indian domestic tax law along with treaties and how they may affect your organization.

Real Estate Investment Trusts (REIT) and Infrastructure Investment Trusts (InvITs): Taking stock and opportunities | 28 May 2019

In India, real estate investment trust (REIT) and infrastructure investment trust (InvIT) taxation regimes have been introduced to allow these structures (business trusts) to be set up in accordance with the SEBI (Real Estate Investment Trusts) Regulations, 2014 and SEBI (Infrastructure Investment Trusts) Regulations, 2014, respectively. While the regulations have been in place for some time, India has seen limited adoption of the regimes, particularly in the REIT segment. However, recent activity has rekindled interest in these taxation regimes. We'll discuss:

  • An overview of the Indian regulations relating to REIT/InvIT taxation and their gradual evolution in India.
  • Tax issues, practical insights, and potential solutions relating to the Indian regulations.
  • Perspectives from Australia and Singapore.

Tune in to the recording to learn about the practical issues as well as possible opportunities in REIT and InvITs that your company may face going forward.

Profit Attribution - A move away from FAR? | 21 May 2019

Attribution of profits to a business connection and a permanent establishment under the mechanisms prescribed in Rule 10 and tax treaties, respectively, have been the subject of considerable debate over the years. Further, post the insertion of the Significant Economic Presence (SEP) definition, a coherent attribution mechanism was required to tackle the attribution of income to the SEP.

The Central Board of Direct Taxes (CBDT) constituted a committee to re-examine the rules of profit attribution and recommend changes in domestic law. In this regard, the report submitted by the committee had been released by the CBDT for comments from the public. The attribution mechanism prescribed has a significant impact on non-resident taxpayers, including taxpayers operating in India, in the digital domain.

We discussed:

  • Observations or recommendations of the report
  • The existing legal framework and practices in India for attribution of profits
  • Analysis of the report’s proposals and the way forward

Tune in to the recording to learn more about the issue, the legal framework, interaction with tax treaties, and how this may affect MNCs operating in India.

Navigate business traveling today and how to stay on top of it | 9 May 2019

The fast-growing digital economy has prompted countries to act on issues arising from the As organizations use business travel in an ever increasing manner, authorities around the world are increasing their focus on business travelers, placing greater scrutiny on them and their employers. Additionally, employers are expected to have full oversight of their business travelers such as actively managing consequent compliance risks associated with immigration, tax, social security, payroll, and permanent establishment. Achieving improved compliance requires a holistic approach comprising change management techniques to steer traveler behavior, effective use of technology to manage the large volume of travel data, and downstream processes to undertake compliance actions. We'll discuss:

  • How authorities focus on business travel has evolved and the implications. 
  • Global hotspots and where employer focus on compliance is best placed. 
  • How organizations are responding to the challenges. 
  • Building a path to improved compliance and success.

Tune in to the recording to gain insights from Deloitte professionals on how your organization can keep on top of the shifting landscape, enhance governance, and strengthen compliance in business traveling.

Taxing royalty payments in a digital world: Keeping up with the changes in India | 7 May 2019

Digital economy relies heavily on intangibles, big data, and rapidly evolving technological advancements with decreased need for local personnel to perform certain functions. However, user participation is an important value driver for various types of online platforms which contributes in the service-offerings and brand building for a multinational in the digital sector. 

A group company of a multinational therefore, should be entitled to its share of profits of a business that result from the unrecognized value being created by these companies irrespective of where the business's goods and services are ultimately sold. In recent judgements, Indian judiciary also analyzed the business functions and value drivers of these multinationals in digital space and its Indian arm and re-characterized the payments from India as income from value creation in India. We'll discuss: 

  • The transformation in business models and the need to revaluate the value drivers for business towards profit entitlements.
  • Various royalty models and emphasis on variable royalty.Which model is more relevant in the digital world?
  • Current developments from the Asia Pacific region.

Tune in to the recording to learn more about the developments in the digital world and how they may affect you.

G20/OECD: Tax challenges of the digitalization of the economy update | 16 April 2019

The last few months have seen several developments in Indian tax jurisprudence. Given the common law system in India and the hierarchy of courts and the tribunal, the same issue may come to be decided by multiple authorities and at multiple levels. This makes it necessary to always be aware of the evolving judicial views. There are also many changes in the statutory provisions, particularly in the area of GST. We discuss:

  • Recent income-tax rulings, including on research and development expenses and on conversion of a company into an LLP.
  • Recent important amendments in GST provisions.
  • Update on anti-profiteering cases.
  • Significant GST advance rulings.

Tune in to the recording.

How India APA/MAP resolution is benefitting UK based MNEs | 5 April 2019

The APA and MAP program in the past year has witnessed quicker resolutions for applicants seeking relief under India APA/MAP program. Various MNEs, including those headquartered in the UK, have benefitted through this program in attaining tax certainty with relation to their India operations. 

This webinar will provide interesting insights into the approach adopted by authorities, recent APA/MAP trends, and key considerations for MNEs participating in the program. 

Based on our recent experiences, the session will cover/highlight some of the complex tax issues that are currently faced by MNEs. This will include the following Transfer Pricing issues:

  • Marketing intangibles [Advertisement, Marketing and Sales Promotion (AMP) expenses] 
  • Intra group services 
  • Royalty for intellectual property

 

India tax update: Latest developments and impact | 19 March 2019

The last few months have seen several developments in Indian tax jurisprudence. Given the common law system in India and the hierarchy of courts and the tribunal, the same issue may come to be decided by multiple authorities and at multiple levels. This makes it necessary to always be aware of the evolving judicial views. There are also many changes in the statutory provisions, particularly in the area of GST. We discussed:

  • Recent income-tax rulings, including on research and development expenses and on conversion of a company into an LLP.
  • Recent important amendments in GST provisions.
  • Update on anti-profiteering cases.
  • Significant GST advance rulings.

Provident Fund applicability on allowance: Supreme Court ruling | 15 March 2019

In a landmark ruling, the Supreme Court has recently concluded that all allowances such as conveyance, medical, education etc. are to be included for PF calculation unless such payments are:

  • Variable in nature, or are linked to incentive for production resulting in greater output by the employee
  • Not paid across the board to all employees in a particular category
  • Being paid especially to those who avail the opportunity

Organisations with employees with a basic pay lower than INR 15,000 per month and foreign nationals (non-Indian passports or OCI card holders) need to understand the impact of the ruling, review the positions adopted, and determine the way forward.

We discussed:

  • Background and facts
  • Principles arising out of the ruling
  • Impact on employer /employees
  • Challenges and approaches

Excise Investigation in Auto Sector: Insights and way forward | 28 February 2019

Various auto component manufacturers are under investigations that have been initiated by the Director General of Goods & Service Tax Intelligence (“DGGI”).

Summons/notices are being issued to challenge the valuation of assessable value for levy of excise duty. According to the DGGI, the cost of drawing/design/specifications that is provided free of cost to the component manufacturers by the vehicle manufacturers should form part of the assessable value. Today, when the excise law has been replaced by GST law, this issue raised by the DGGI at such a large scale is disrupting the regular business and leading to litigation for the auto industry.

We’ll discuss:

  • An insight into the allegations raised in the notice/s;
  • Legal framework w.r.t. valuation under Central excise; and,
  • Way forward.

Common themes in GST across China and India: What you should know | 26 February 2019

The changing profile of GST/VAT system across Asia Pacific region in recent times has made it necessary for businesses to alter their business strategies and their compliance planning. While GST continues to be a hot topic across the region, China and India being the largest economies in the region, are of specific interest to all businesses. China has been engaged in VAT reform for quite some time and many more changes are expected in 2019. India has just completed the introduction of a large scale GST which has altered the business landscape and increased compliance for many businesses. There are quite a few common themes emerging in the GST reform landscape of these Asian giants although the GST in these countries is quite different. We'll discuss:

  • The business impact of these changes from a planning and compliance perspective.
  • Common themes emerging from these countries.
  • Practical case studies.
  • Opportunities and the way forward.

Cross-border mergers in Asia Pacific: Steering towards the future | 19 December 2018

US trade policies have created an impact on the Asia Pacific region. From implementation of the Wassenaar Agreement to the release of a second tranche of list of goods subject to additional import tariffs. Transformational changes to trade policies have created a stir in various sectors such as export of automobiles, steel based products, etc. These changes have the ability to alter the geographical supply chain of products from one region to another. How the trade policies implemented by the US will be reciprocated by the countries in Asia Pacific? We'll discuss

  • Cross imposition of import tariff on US origin goods.
  • Shift of supply chain from one country to another country.
  • Impact on manufacturing operations of business impacted by such tariff fluctuations.

Stay updated on the transformation impact of the US trade policies on various countries and the reciprocating trade measures taken by the effected countries.

Cross-border mergers in Asia Pacific: Steering towards the future | 29 November 2018

The Ministry of Corporate Affairs and Central Bank of India have rolled out rules to permit cross-border inbound and outbound mergers between Indian companies and foreign companies. This is expected to boost foreign investment in India. Further, it is a move that government has taken to showcase itself as an investment friendly jurisdiction. These regulations enable MNCs to look for business consolidation across the globe and enable Indian businesses to consider expanding their wings in the overseas market with more ease. We'll discuss:

  • An overview of the rules and how does this impact Indian and foreign companies.
  • What are the new avenues and potential limitations?
  • The tax issues and interplay with overseas laws.
  • Practical case studies.

Learn about the important developments on the cross-border mergers in Asia Pacific and how they may affect your organization.

Profit split method: New OECD guidance and practical applications | 27 November

The OECD BEPS reforms have increased the scrutiny of transfer pricing outcomes on a global basis. Relying solely on a one-sided transfer pricing analysis may no longer be sufficient in many jurisdictions. Consequently, the profit split method is likely to be used more often to set and review transfer pricing arrangements. The OECD has recently released further detailed guidance on the application of the transactional profit split method. During the webcast, we'll discuss:

  • Revised OECD and local country guidance on the application of the profit split method.
  • Identifying and accounting for intangible assets and contributions.
  • Potential data sources and issues involved in practical application.
  • Best practices, key experiences, and case studies.

Keep abreast of the developments in this important area of transfer pricing.

Tax rulings and social security agreements: Shifting sands for India inbound moves | 20 November 2018

Investment into India is increasingly a priority for many MNCs given that India is moving up the scale on "Ease of Doing Business". A natural consequence of this will be the transfer of more senior level executives to India which will create increased compliance requirements with regard to tax and social security obligations.

Digitization of compliance, enhanced data mining, closer connectivity between immigration, tax, and social security authorities, have all allowed the Indian authorities to better detect instances of non-compliance and to assess tax liabilities. Monitoring compliance, tracking defaulters, and levying real time penalty is an extremely robust process in India.

A significant focus area for MNCs will be in meeting the tax and social security obligations for senior employees transferred to India, managing risk with regard to a Permanent Establishment (PE) exposure, and having robust documentation to support secondment arrangements. The importance of documentation right from the assignment to repatriation stage cannot be overemphasized. We'll discuss:

  • An overview of the compliance framework.
  • The common challenges faced by companies seconding personnel to India.
  • Practical case studies.
  • Potential pitfalls that need to be avoided from a PE exposure perspective.
  • The right approach to leverage on tax and social security costs.

Gain insights on the significant recent developments concerning tax rulings and social security agreements in India.

 

Recent Karnataka High Court (“KHC") ruling in Softbrands case on admissibility of Transfer Pricing matters: Critical analysis and insights | 12 July 2018

The pendency of tax matters especially the Transfer Pricing cases have increased significantly in the recent times. It is learnt that more than 3,500 Transfer Pricing cases are pending at the KHC, with the first admitted Transfer Pricing case pending for final hearing for over 9 years now.

With the view to reduce the pendency of tax matters before the KHC, a dedicated tax Bench was constituted in June 2018 with Justice Mr Vineet Kothari and Justice Ms Sujatha.  The KHC, after an elaborate hearing of over 3 days, has delivered a landmark judgement in relation to admissibility of Transfer Pricing cases, specifically on whether the questions on comparability analysis of companies and filters to be adopted for the benchmarking exercise, would constitute a ‘Substantial Question of Law’ so as to be admitted by the HC.

The discussion covers:

  • Detailed analysis of the KHC ruling
  • Observations and impact analysis

The ruling has widespread ramifications for transfer pricing cases, in particular, and tax cases in general, where Tribunal has delivered their decisions. 

Prosecution for Income-tax offences: Steep rise in complaints and convictions | 9 May 2018

A threefold increase in the number of prosecution complaints has occurred only in the first eight months of FY 2017-18. Until November 2017 a total of 2225 prosecution cases have been filed by the Department as against 784 filed in entire FY 2016-17. In the zeal of achieving tax recovery targets and tackling the black money menace, department is issuing prosecution notices for non-compliances like non-filing of returns, non-payment of taxes, etc.

The discussion covered:

  • procedure under tax laws for prosecution and defences
  • practical cases on mitigating prosecution

The approach of treating income tax offences on par and as grave as economic offences has widespread ramifications.
It is better to be updated and ready than react when prosecution notices arrive.

Union Budget 2018: Key highlights | 1 February 2018

Union Budget 2018 will be presented on 1 February 2018. The last fiscal year witnessed a slew of reforms on the tax and regulatory front. With the current government entering its penultimate year, the trend is set to continue.

Goods and Services Tax (GST) regime in India was implemented in July 2017. The release of the final rules on country-by-country reporting and master file requirements in India are significantly aligned with BEPS Action 13 guidance, reflecting India's commitment to global consistency.

GST, Real Estate Regulation Act, demonetization, bankruptcy code, recapitalization of bonds of public sector banks, and relaxation of foreign direct investment norms are challenging old practices and transforming the way India is doing business.

In these times of massive reforms, interest is further mounting to see what’s next on the cards. What economic reforms will the budget bring? How will it affect the business landscape in India?

 

Union Budget 2018: Detailed analysis and insights | 2 February 2018

Union Budget 2018 will be presented on 1 February 2018. The last fiscal year witnessed a slew of reforms on the tax and regulatory front. With the current government entering its penultimate year, the trend is set to continue.

Goods and Services Tax (GST) regime in India was implemented in July 2017. The release of the final rules on country-by-country reporting and master file requirements in India are significantly aligned with BEPS Action 13 guidance, reflecting India's commitment to global consistency.

GST, Real Estate Regulation Act, demonetization, bankruptcy code, recapitalization of bonds of public sector banks, and relaxation of foreign direct investment norms are challenging old practices and transforming the way India is doing business.

In these times of massive reforms, interest is further mounting to see what’s next on the cards. What economic reforms will the budget bring? How will it affect the business landscape in India?

 

India releases draft rules on Country-by-Country reporting and Master File for public consultation | 12 October 2017

The Central Board of Direct Taxes (“CBDT”) on 6 October 2017 released draft rules in respect of CbC reporting and Master File related requirements in India, for public consultation. The draft rules provide detailed instructions for compliance with these requirements and are open for public comments till 16 October 2017. 

Topics discussed:

  • Provisions relating to Master File
  • Provisions relating to CbC reporting
  • Impact on Indian Multinational Enterprises (MNEs)
  • Impact on MNEs headquartered outside India
  • Key suggestions/recommendations on the draft rules 

 

BEPS – India spotlight | 26 September 2017

India has been one of the active members of the OECD’s BEPS initiative and as part of international consensus, India has successfully implemented various BEPS Actions Plans to address the BEPS issues.

Our discussion will cover:

  • Multilateral convention to implement tax treaty related measures to prevent BEPS
  • Other key issues - MNCs with Indian operations will also be impacted by other changes such as interest deductions for related party debt and changes to the definition of permanent establishment.
  • Treaty abuse
  • Aligning transfer pricing outcomes with value creation.
  • Three tier transfer pricing documentation.

 

Permanent Establishment and Transfer Pricing audits | 30 August 2017

Controversy around existence of permanent establishment keeps on resurfacing. The Supreme Court in a recent decision in Formula One World Championship Ltd. has laid down guiding principles for qualifying as a Permanent Establishment (PE) in India, attribution of income and withholding tax. This decision is of considerable importance in the field of furthering international tax jurisprudence.
With the emergence of new safe harbour rules, CBC reporting, risk based scrutiny and BEPS, the manner of TP scrutiny assessments will undergo a change. Recent litigation also suggests a change in the trend and focus of the tax authorities.

Topics covered in discussion:

  • Decision of the Supreme Court in Formula One World Championship Ltd v. CIT (394 ITR 80)
  • Changing scenario of transfer pricing litigation in India in the light of revised Safe Harbour Rules, impact of BEPS especially CbC reporting and risk based assessments. 
  • Some recent rulings and litigation trends in the field of Transfer Pricing.

US Tax Reforms and what they mean for India | 18 July 2017

Tax reform still looms large in Washington. The White House and congressional Republicans maintain their commitment to enacting comprehensive tax reform by the end of this year. But consensus is still lacking as to what a reformed tax code should look like.

Following topics were discussed:

  • Proposed corporate and individual rate changes—and base broadeners—in the major tax reform plans that have been released to date. These include disallowance for imports and exemption for exports, accelerated depreciation, restriction on R&D credits, tax rate changes etc.;
  • Conditions that could hasten or hinder action on tax reform this year;
  • Procedural options available to lawmakers in the pursuit of tax reform legislation; and
  • Impact of these proposals from an Indian perspective. 

Tax Litigation in India- Changing Landscape | 27 April 2017

In India courts have played crucial role in the development of jurisprudence. Many a time conceptual issues have been settled by the courts. The decisions of tax tribunals and courts have provided clarity on legal issues and on interpretation of facts not only for the Indian taxpayers, counsels and tax authorities but also to those in other countries. The landmark decisions of the Indian courts are quoted in tax journals across the world as well as by courts in other countries. Courts in India are alive to developments in other countries and draw strength for reaching decisions. The decisions by the courts provide much needed resolution from litigation to taxpayers. Fortunately the tax department has been taking steps to reduce litigation.

Following topics were discussed:

  • Some recent landmark decisions on International Taxation;
  • Some recent landmark decisions on Transfer Pricing;
  • Important lessons from the above decisions; 
  • Recent steps by the tax department to reduce litigation;
  • Proposed change in penalty provisions – the ramifications.
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