Tax & Regulatory Newsletter – December, 2018- February , 2019 Edition

We are pleased to attach herewith the Tax & Regulatory Newsletter – December, 2018 –  February , 2019 Edition highlighting major recent tax and regulatory developments.

Inside this issue… 

DIRECT TAX                                                                                                                                                      

  1. Mumbai ITAT held that Service-tax / R&D cess borne by Indian service recipient are not taxable as Royalty
  2. Ahmedabad ITAT held that payment for testing services not chargeable to tax as FTS
  3. Delhi ITAT allowed the tax sparing credit in respect of dividend income received by the assessee from its Thailand subsidiary

INTERNATIONAL TAX

  1. Addressing the Tax Challenges of the Digitalisation of the Economy – OECD Policy Note
  2. US Treasury Leadership Gives Direction to the OECD Digital Tax Project in January 29 Note
  3. S.Korea’s tax agency to intensify probe into companies’ tax evasion
  4. Irish corporation tax faces new squeeze as OECD kicks off digital reform probe
  5. Investors Facing Tax They May Not Owe Must Move Fast With IRS In (1)
  6. Romania Imposes 10% Tax on Cryptocurrency Earnings

TRANSFER PRICING

  1. Money routed through AE for advance payment to third party is not a case of capital financing and accordingly outside ambit of ‘international transaction’
  2. ITAT characterize Microsoft India as Contract R&D service provider instead of routine software developer by placing reliance on detailed functional and risk analysis
  3. ITAT deletes addition on AMP expenditure in absence of any agreement or arrangement with AE
  4. ITAT held that Hedging-loss on derivative contract entered with third parties to cover forex fluctuation for the purpose of loan advanced to its AE is not an international transaction

 

GST

  1. ‘Advance ruling- No IGST on the warehoused goods supplied to Domestic Tariff Area from Free Trade Warehousing Zone’

 

We trust that you will find it interesting and informative.

Nangia Andersen India Pvt. Ltd._Newsletter_ December, 2018- February , 2019 Edition

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