In an important update, Central Board of Indirect Taxes and Customs (‘CBIC’) has made virtual mode of hearing mandatory. The judicial cell of CBIC vide. Instruction F. No. 390/Misc/2019-JC dated November 5, 2024, has instructed that all hearings under current Indirect Tax laws, whether current or erstwhile, shall be conducted in virtual mode.
This Tax Alert summarizes the recent Delhi High Court (HC) ruling disposing Writ Petitions in a batch matter on valuation of import of services relating to secondment of employees from overseas entity.
Companies often give gifts to their employees to boost morale, celebrate achievements, and promote a positive work environment. Such gifts are common during festivals like Diwali and Christmas, or for special occasions like work anniversaries, birthdays, or company milestones. However, the taxability of these gifts can vary significantly depending on the nature of the gift and the circumstances under which it is given.
In the evolving landscape of transfer pricing, India’s Advance Pricing Agreement (APA) programme has emerged as a beacon for multinational enterprises (MNEs) seeking tax certainty. Launched in 2012, the APA programme offers MNEs an opportunity to preemptively resolve transfer pricing disputes by establishing an agreed-upon transfer pricing methodology for a specified period.
Transfer Pricing Challenges in India
India's transfer pricing environment has historically been contentious, with prolonged litigation often arising from audit triggers like profit shifts, cost allocations, or royalty payments. Many cases take years to resolve in tax tribunals, adding to the uncertainty MNEs face. However, the APA programme provides a proactive solution, allowing MNEs to avoid retrospective disputes and secure tax stability.
Types of APAs
The APA regime in India includes three types:
Impact and Growth
The APA programme’s impact is notable, with over 1,800 applications filed since inception and a record 125 APAs signed in 2024 alone. As of March 2024, the programme has concluded 641 APAs, including 506 Unilateral and 135 Bilateral agreements, underscoring its growth and effectiveness. Key sectors benefiting from APAs include software, BPO, KPO, and engineering, highlighting the programme's alignment with India’s service-oriented economy.
Conclusion
India’s APA programme is a robust tool for MNEs to achieve tax certainty and minimize double taxation risks. The government’s commitment to APA expansion strengthens India’s position as an attractive destination for foreign investment, ensuring a fair and predictable tax landscape for cross-border transactions.
Some of the recent significant judgments of the Supreme Court pertaining to the Prevention of Money Laundering Act (PMLA) include:
Overview
The Supreme Court of India recently ruled on the applicability of the Most Favoured Nation (MFN) clause in tax treaties involving India, specifically in Assessing Officer vs. M/s Nestle SA and Others. The Court determined that an Indian government notification is a mandatory prerequisite for the MFN clause to be enforceable in India’s Double Tax Avoidance Agreements (DTAAs). This ruling restricts certain benefits within these treaties and conflicts with previously understood international principles of good faith in treaty enforcement.
|
S No |
Due
Date |
Related
to |
Compliance
to be made |
|
1 |
11.11.2024 |
GSTR –
1 |
Filing
of GSTR 1 for the month of October 2024
|
|
2 |
20.11.2024 |
GST |
-Payment
of GST for the month of October, 2024 -Filing
of GSTR 3B for the month of October, 2024 |
|
3 |
07.11.2024 |
TDS/TCS (Income Tax) |
·Deposit
TDS for payments of Salary, Interest, Commission or Brokerage, Rent,
Professional fee, payment to Contractors, etc. during the month of October 2024. ·Deposit TDS from Salaries deducted during the
month of October 2024 • Deposit TCS for collections made under section
206C including sale of scrap during the month of October 2024, if any • Deliver a copy of Form 15G/15H, if any to CCIT
or CIT for declarations received in the month of October 2024, if any |
|
4 |
30.11.2024 |
Filing
of returns for the Company |
Filing
of Master File data in Form 3CEAA for FY 2023-24.
Filing
of income tax return for the Corporate assesses with Transfer Pricing . |
On the GST portal, taxpayers have access to two sections for important updates from the department:
The Central Board of Direct Taxes (CBDT) has recently released Circular No. 12 of 2024, which provides timely clarification in the form of FAQs on the Direct Tax Vivad se Vishwas (DTVsV) Scheme, 2024. This prompt clarification is commendable, as it helps to address questions from taxpayers and ensures smooth implementation of the scheme. The 2024 scheme bears resemblance to the previous DTVsV Scheme of 2020, though it introduces three notable differences:
The Supreme Court of India has issued several key judgments in recent years concerning the Prevention of Money Laundering Act (PMLA). These rulings provide important clarifications on various aspects of money laundering, procedural safeguards, and the scope of the law. Below are some of the landmark judgments:
Legal Framework: Section 171 of the Income Tax Act, 1961, governs the partition of a Hindu Undivided Family (HUF). This section provides the legal basis for dividing the assets and liabilities of the HUF among its members.
When India introduced the Goods and Services Tax (GST), it created a big change in the way companies handle their taxes. Earlier, businesses just focused on following income tax rules for setting prices between related companies. Now, they have to balance both income tax and GST rules, which makes things a bit tricky, especially for big international companies. This article explains why GST and transfer pricing matter and what companies do to follow the rules.
Please find below communication for your information and necessary action:
