Articles by partners
Article: Service PE – A New Era of Litigation – International Taxation – Published by Bloomberg Tax Planning International – Asia Pacific Focus
September 13 2017
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
Indian Budget’s amendments to Transfer Pricing provisions – a further step towards a predictable tax environment
August 6 2014
India's Transfer Pricing Regime has been the subject of significant criticism. Whether the July's Union Budget proposals to amend the current transfer pricing regime, would simplify the tax regime and restore confidence among the tax payers especially foreign investors?
Article: "Indian Budget's amendments to Transfer Pricing provisions - A further step towards a predictable tax environment" published by Bloomberg BNA in their Transfer Pricing International Journal for the month of July.
Article – (FDI) in LLP in India – Cross Border Tax Issues- Published by International Tax Review – A Globally published Journal
June 4 2014
Limited Liability Partnership (LLP) is a widely practiced form of doing business globally. And, once Foreign Direct Investment (FDI) in LLP was allowed by Government of India many MNCs have started setting up LLP in India. This surge by MNCs can well be on the fact that at present there is no repatriation tax [in case of Companies Dividend Distribution Tax is levied @ 17% (as per the Extant IT Act) on the repatriable profit- off course there are means by which double taxation is avoidable in foreign country on such repatriated profits] on profits repatriated by an LLP in India.
However, there can be number of cross border taxation issues, particularly under Double Taxation Avoidance Agreements (DTAA)/ Tax Treaties, which requires utmost attention with respect to the taxability of such LLPs & their foreign partners.Read More
Article on Corporate Guarantee – an International Transaction? – Published by Corporate Law Reporter
April 16 2014
There are a lot of developments taking place in India as well as globally on Transfer Pricing front. In that respect, recently Delhi Income Tax Tribunal in the case of Bharti Airtel Limited has held that Corporate Guarantees issued by parent to its foreign subsidiary is not covered by Indian transfer pricing provisions. This is despite the fact that, by virtue of Finance Act, 2012 the definition of the term International Transaction was clarified to have a wider scope to cover capital financing transactions and consequentially subject to Indian transfer pricing law. In the global context also corporate guarantees are subjected to transfer pricing analysis.
An attempt is made to analyse certain Indian rulings ( before & after amendment of Finance Act) as well as Foreign Court rulings on the subject matter. Important principles of OCED guidelines on Transfer Pricing have also been dealt with in the attached article.Read More
Recent Developments with respect to withholding tax u/s 195 on payments to non-residents_A co-authored article published in Taxmann International Taxation Journal
October 23 2013
Withholding Tax under section 195 on payments to Non-residents has always remained a subject matter of Interpretation & accordingly has been a controversial matter. Further forms for issuance of the remittance certificates by Chartered Accountants have been amended to include details of tax residency certificate and PAN of the non- resident where benefit of any treaty is sought to be taken.