Newsletter


Budget 2017 -   Heads Up Analysis


Heads Up Budget 2016 Analysis   Budget 2016 Direct Tax


Heads Up Budget 2016 Analysis   Budget 2016 Indirect Tax


Budget 2015 Analysis:   Budget 2015


Heads Up Budget Alert   Budget 2014 Direct Tax


Heads Up Budget Alert   Budget 2014 Indirect Tax


June 24, 2014   Tax alert

    In this issue, we have discussed the following developments:
  • Advance Ruling in the case of Steria India Limited questioning the applicability of protocols signed along with the tax treaties;
  • Delhi Tribunal decision in the case of Nortel Networks India Intl. Inc. wherein the Court held in favour of the Revenue, that the taxpayer had a PE in India and 50% of profits of the Foreign Company were taxable in India;
  • Delhi High Court decision in the case of Cushman & Wakefield (India) P. Ltd., reiterating requirement of benchmarking related party transactions claimed as reimbursements and throwing light on the extent to which an international transaction can be examined by AO and TPO;
  • Bombay High Court decision in the case of Bharat Bijlee Ltd., creating a distinction between 'Slump sale' and 'Slump exchange', and holding that the latter cannot be taxed under the provisions of the Income-tax Act;
  • Jaipur CESTAT order in the case of Paramount Communication Ltd.; allowed Cenvat Credit of service tax paid on the outdoor catering services, irrespective of whether or not Taxpayer is under a statutory obligation to provide food under the Factories Act, 1948;
  • Bangalore CESTAT in the case of RL Fine Chem., held that refund claim cannot be rejected on the ground of deficiency in documents while filing refund;

May 16, 2014   Tax alert

    In this issue, we have discussed the following developments:
  • Delhi High Court (‘HC’) decision in the case of Centrica Offshore on secondment of employees, holding that the payments made by Indian entities in respect of secondment arrangement are in the nature of Fees for technical services. Curiously, the HC also upheld the ruling of the AAR regarding the existence of Service Permanent Establishment of the overseas entity by virtue of such secondments.
  • Another Delhi HC decision in the case of Linde AG, clarifying in detail the law on formation of AOPs, and holding that income from offshore supplies forming part of turnkey EPC Contracts, is not taxable in India.
  • Mumbai ITAT decision in the case of Parle Biscuits, wherein the ITAT reversed the DRP order and rightfully removed the imputed interest cost on share application money due to delay in allotment.
  • The Constitution Bench of the Hon'ble Supreme in the case of Kone Elevators held that a contract for the erection, installation and commissioning of Lifts is "Works Contract" and not a "Contract of Sale.
  • A Delhi CESTAT order in the case of Hero Motors, wherein it held that an undertaking given by the assessee does not act as an estoppel from claiming the statutory right available under the law;
  • Revision of norms for rescheduling of ECBs by the RBI.

March 07, 2014   Tax alert

    In this issue, we have discussed the following developments:
  • A welcome decision by the Agra Tribunal in the case of Virola International, on implication of retrospective amendments on withholding tax liability of the payer.
  • An adverse ruling by the Authority for Advance Rulings in the case of Booz & Company, on constitution of Permanent Establishment upon rendering services to Indian Group Company.
  • An extremely relevant decision of the Delhi Tribunal in the case of Tilda Riceland, on the manner in which Comparable Uncontrolled Price methodology is to be applied while benchmarking the international transactions.
  • A Delhi High Court decision in the case of Maruti Suzuki, on the power of the Tribunal to grant stay of demand beyond a period of 365 days.
  • Update on recent circular issued by Central Board of Direct Taxes on applicability of provisions of Section 14A.

January 08, 2014   Tax alert

    In this issue, we have discussed the following developments:
  • A welcome decision of the Delhi High Court in the case of Li and Fung, on the cost base to be adopted while applying TNMM for entities rendering Purchasing assistance / Sourcing services.
  • An extremely relevant decision of the Madras High Court in the case of Gem Granites, explaining that where the possibility of an inadvertent error in the accounting entries cannot be ruled out, penalty for concealment of income cannot be levied.
  • Two important changes made by the RBI to the exchange control regulations, to improve the flow of finances to infrastructure sector.
  • Unfolding of the Cyprus Tax saga, which gives rise to serious concerns for MNC groups that have invested in India through any of the non-transparent jurisdictions, such as Luxembourg, BVIs, Switzerland and Seychelles.
  • Internal guidelines by the CBDT on procedural applicability of the Safe Harbour Rules.
  • BIG BOSS scores a victory over Indian Revenue.