Insights

Downloads: Tax insights and perspectives

Indian operations of foreign enterprises - A BEPS perspective

This paper seeks to capture some of the key potential impacts of BEPS for multinational enterprises [MNEs] that are operating in India. It is pertinent to note that other than postponement of the implementation of the Indian GAAR on account of the BEPS project, the Indian government has officially not made its stand known on BEPS. 

A BEPS perspective

Goods and Services Tax in India - Taking stock and setting expectations

In India, GST was conceived in 2004 by the Task Force on implementation of the Fiscal Responsibility and Budget Management Act, 200316 (Kelkar Committee) while analyzing prevailing indirect tax system both at Central and State level. The Kelkar Committee observed that a tax reform of nationwide dual GST which would comprehensively tax the consumption of almost all goods and services in the economy would be able to achieve ‘a common market, widen the tax base, improve the revenue productivity of domestic indirect taxes and enhance welfare through efficient resource allocation’. 

Taking stock and setting expectations

Anticipating BEPS India impact - Survey Results

The Base Erosion and Profit Shifting (BEPS) project of the Organization for Economic Co‑operation and Development (OECD) is recently in spotlight of the international tax community. It is expected that the BEPS project will have significant impact on Multinational Enterprises (MNEs).

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  • Companies Act 2013 (Co Act) require companies meeting certain criteria to spend on CSR w.e.f. 1 April 2014
  •  At least 2% of the average net profit of the company in the immediately three preceding financial years is required to be spent on CSR
  • Applicable to companies having (a) net worth of INR 5 billion or more; or (b) turnover of INR 10 billion or more; or (c) net profit of INR 50 million or more
  • Company is required to constitute CSR Committee comprising of Directors
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Deloitte’s recommendations on Income Computation & Disclosure Standards - In response to CBDT press release dated 26th November, 2015

On 26th November 2015, the Central Board of Direct Taxes (CBDT) invited the stake holders and general public to bring out issues which in their opinion would require further clarification/guidance for proper implementation of the provisions of the ICDS. In response to this press release, we submit below our recommendations on ICDS for consideration by CBDT.

In response to CBDT press release dated 26 November, 2015

Business Process Solution(BPS)

Businesses today are facing a rapidly evolving landscape including regulatory changes, continued advances in technology, and the adoption of more sophisticated approaches by revenue authorities. 

Helps businesses enhance performance and efficiency

Goods and Services Tax (GST) – is a comprehensive national level tax that will be levied on supply of goods and services at a national level. Considered as the most significant taxation reform in India, GST is all set to integrate State economies and boost overall growth.

Your Business Enabler

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (Act) is a very important and bold move by the Indian Government in their efforts to bring back black money stashed abroad by Resident and Ordinarily Residents (ROR). 

The Black Money and Imposition of Tax Act, 2015 is a very important and bold move by the Indian Government

The BEPS measures involved a two-year consultation process between the OECD, G20, developing countries and the stakeholders from business, academia and civil society organisations. Sixty-two countries including India have collaborated in the G20/OECD-led BEPS project and they have agreed to continue working together at least until 2020. Many more participated in shaping the outcomes through regional structured dialogues.

Incisive Insights

Income Computation and Disclosure Standards (ICDS) has been recently notified by the Central Board of Direct Taxes which is effective from 1 April 2015 (Assessment Year 2016-17) ICDS is applicable for computation of taxable income under the heads ‘Income from business or profession’ and ‘Income from other sources’ Impact needs to be assessed to enable taxpayers to quantify advance tax liability (due by 15 June 2015) 

Income Computation and Disclosure Standards has been recently notified by the Central Board of Direct Taxes which is effective from 1 April 2015

Innovation is the key to new Government’s “Make in India” initiative. R & D activities apart from business advantage can bring tax efficiency to the tax payer. Complying with certain conditions may help in lowering the tax liability of the Company. R & D activities having following ingredients would be eligible for tax incentives.

The tax efficient approach

Innovation is the key to new Government’s “Make in India” initiative. R & D activities apart from business advantage can bring tax efficiency to the tax payer. Complying with certain conditions may help in lowering the tax liability of the Company. R & D activities having following ingredients would be eligible for tax incentives

International Tax

The Finance Act 2015 has proposed to amend the test of residence for foreign companies to provide that a company would be treated as resident in India if its place of effective management in the previous year is in India. “Place of effective management” has been defined to mean a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance made. A set of guiding principles to determine POEM is also proposed to be issued.

Likely trigger and impact of Poem
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