Other Briefings
Latest on GAAR
Aug. 22 – The Central Board of Direct Taxes (CBDT) recently issued draft guidelines on General Anti-Avoidance Rules (GAAR), which will be applicable to income accruing on or after April 1, 2013. The guidelines state that GAAR applies only where an overseas institutional investor takes advantage of double taxation avoidance treaties.
New Service Tax Regime Introduced from July 1, 2012
A new service tax system has been introduced this week in India based on a list of 38 exemptions, rather than the previous list of 119 explicitly taxed activities. Under this regime, a tax of 12 percent will be levied on all services not included in the negative list.
Retrospective Taxation – Probably Not Applicable to Most Foreign M&A Deals
Jun. 5 – Foreign investors have been wary of investing in India since the beginning of the year after the budget introduced the General Anti-Avoidance Rules, or GAAR, and retrospectively changed the income tax law. Vodafone is expected to be the first victim of this tax and the press has subsequently dubbed the retrospective tax […]
Morgan Stanley Obtains Indian Banking License
The Reserve Bank of India has granted the U.S. financial institution Morgan Stanley a banking license.
India Issues Re-Assurances over Tax and Retroactive Legislation
India’s Finance Minister Pranab Mukherjee has scotched media reports concerning the intentions of India’s new tax regulations, and has pulled back on GAAR until April 2013.
India Issues Ruling on Transfer Pricing Aspect of Royalty Payments
The High Court has ruled that royalty payments cannot be prohibited on instances of continuous loss where the spending was proven to be incurred “wholly and exclusively” for the purpose of the business of the Taxpayer.
Small Firms and Individuals May Be Exempt from GAAR, Postponement Also Possible
In an attempt to soften the blow of the General Anti-Avoidance Rules (GAAR), India’s Finance Ministry is considering postponing the implementation of the new regime and may completely exempt small firms and individuals.
PAN Application Procedures For Foreign Nationals In India
Apr. 11 – In this article, we describe the proof of identity and proof of address requirements associated with the application of a permanent account number (PAN) for Indian citizens outside of India, foreign citizens located in India, and foreign citizens located outside of India. Citizen of India located outside India at the time of […]
