7 search results for "taxation"

Member consultation: CBDT’s draft rules on attribution of profits to PEs

The CBDT has on 18.04.19 released draft rules (available here) on attribution of profits to permanent establishments. These would have widespread ramifications for multinational companies that are having sales in India or users in India.  The rules appear to be timed with a view to pre-empt the discussions on the digital economy at the OECD/ G20 and could also be a harbinger of the significant eco...

Green Jersey, Dutch Sandwich, Irish Double and Single Malt

by Sumeet Swarup No, this is not a Rugby game, or the menu of an evening dinner. These are slang names of techniques used to reduce taxes for corporates around the world. Each has its own intricacies, but to illustrate an Irish Double – a multinational corporate will setup a company in Ireland, assign it an Intellectual property (IP) for a product, and conduct sales across Europe. When this ...

Final notification by CBDT for taxation of foreign Cos held as resident in India as per Place of Effective Management

The much awaited Notification on Place of Effective Management (POEM) guidelines is released and attached herewith for your reference. You would recall that the draft notification was issued  in June last year and we had been requesting for the release of final notification considering the rules become effective from FY 16-17. The notification is deemed to have come into force retrospectively from...

Ministry of Finance clarification on taxation of gifts and perquisites supplied by companies to their employees

Ministry of Finance has via the attached press release clarified that Gifts up to a value of Rs 50,000/- per year by an employer to his employee are outside the ambit of GST. However, gifts of value more than Rs 50,000/- made without consideration are subject to GST, when made in the course or furtherance of business.  The press note further explains the term “gift” and elaborates on conditions fo...

Taxation of training and recruitment services provided by a start-up

In this blog, we look at a query on taxation of training and recruitment services provided by a start-up.   Query: We are a startup and provide Training, Recruitment and Contracting people to Software Services companies in India. Is there any concessions for a start up? What are the rates for the above three?   Response: Given that the business is engaged in supply of services: There are no conces...

Why Taxation Authorities in India need a New Administrative Framework?

Ever since the inception of taxation system, the world has witnessed a myriad of instances related to tax evasions.  Although the highly distinguished US Supreme Court Justice, Late Oliver Wendell Holmes Jr., once said, “Taxes are what we pay for civilized society,” nonetheless most of the taxpayers worldwide have an inherent characteristic of looking out for loopholes in taxation framework that c...