Monthly Archives: April 2015

  • Indian poem_A Melodious Reading – Article published by International Tax Review

    April 28 2015

    The India Budget 2015 proposed a number of amendments to the existing law as far as International Taxation is concerned. The union Budget 2015 proposes to amend the Indian Tax Laws (ITL) to provide clarity on taxation of indirect transfer of Indian assets, defer implementation of General Anti Avoidance Rules (GAAR) by two years, reduction of withholding rates for payment of royalties and fees for technical services,  clarity on taxation of interest paid by a branch of a foreign bank in India to its head office, enabling provisions to frame foreign tax credit rules, taxation of offshore funds which have fund managers based in India, reporting requirements for foreign payments etc.. All these proposals are welcomed by the International Community and are in line with the Government’s assurance of a non-adversarial and certain tax regime. However, one proposal which is viewed as against the Government’s assurance is the introduction of Place of Effective Management (POEM) concept as a test for determining corporate residency.

    Read More