Taxpayers TPO's computation Post Tribunal's rulings. No. of comparab les % 2.05% % (Excellence Data) 3
|
|
- Mary Parsons
- 5 years ago
- Views:
Transcription
1 KPMG FLASH NEWS KPMG IN INDIA The Hyderabad Tribunal adjudicates on rejection of certain comparables from the standard ITES set selected by the TPO in three different rulings, consequentially dropping the average PLI as low as per cent 7 August 2014 In a major relief to the taxpayers engaged in the provision of Information Technology Enabled Services (ITES), the Hyderabad Bench of the Income-tax Appellate Tribunal (the Tribunal) rejects companies selected as comparables by the Transfer Pricing Officer (TPO) on various grounds. The table below summarises the average Profit Level Indicator (PLI) computed by the TPO vis-à-vis the revised PLI on exclusion of companies, as adjudicated by the Tribunal: Taxpayers TPO's computation Post Tribunal's rulings No. of comparab les Margin* Working capital adjustment No. of compara bles Margin* Capital IQ Information Systems (India ) Private % 2.19% % 2 Limited (Capital IQ) 1 Excellence Data Research Private Limited % 2.05% % (Excellence Data) 3 1 Capital IQ Information Systems (India) Private Limited v. ACIT (ITA No.170/Hyd/2014) 2 The margin is subject to change post inclusion of Allsec Technologies Limited as comparable 3 Excellence Data Research Private Limited v. ITO (ITA No.159/Hyd/2014)
2 Hyundai Motors India Engineering Private Limited % 2.05% % (Hyundai Motors) 4 *Margin as computed before the working capital adjustment The Tribunal also directed the TPO/Assessing Officer (AO) to allow risk and working capital adjustment based on the facts of each comparable case. Facts of the case The facts cover three Tribunal rulings pertain to the Assessment Year (AY) in the following companies (the taxpayers), all operating as captive service providers: Capital IQ Excellence Data Hyundai Motors Capital IQ is engaged in the provision of processing financials of companies to extract data. Capital IQ earned a net cost plus margin of per cent during the year. Excellence Data is engaged in the provision of back office data creation, content development, and support services in relation to analysis, content search, and projections for various types of business information. Excellence Data earned a net cost plus margin of per cent during the year. Hyundai Motors is engaged in the provision of support services in the nature of modelling and iterative simulation in relation to computer aided engineering and computer aided design. Hyundai Motors earned a net cost plus margin of 6.44 per cent during the year. During the assessment proceedings, the TPO rejected the documentation maintained by the taxpayers on the following reasons: Use of multiple year data Improper application of export filters Selection of functionally dissimilar companies. The TPO undertook fresh search of comparables arriving at a set of 12 companies with an average PLI of per cent before working capital adjustment. The TPO computed and allowed working capital adjustments in all the three cases. On further appeal to the Dispute Resolution Panel (DRP) by the taxpayers, the DRP confirmed the order of the TPO. 4 Hyundai Motors India Engineering Private Limited v. DCIT (ITA No.255/Hyd/14)
3 Taxpayer s contentions and the Tribunal s ruling The taxpayers in their appeal to the Tribunal restricted their arguments to the comparables. The table below provides contentions of the taxpayers, common to all three rulings, on the companies selected as comparable by the TPO, and the Tribunal s finding on the same: Company Taxpayer s objections Tribunal s findings Infosys BPO Limited (Infosys) Genesys International Limited (Genesys) Eclerx Services Limited (Eclerx) Cosmic Global Limited (Cosmic) Acropetal Technologies Limited (Acropetal) Accentia Technologies Limited (Accentia) 1. Holds brand value of Infosys Technologies Limited, incurring large amounts of brand building and advertisement expenditure, and undertakes brand campaigning outside India 2. Huge asset base 3. Difference in the size and scale of operations i.e. turnover. 1. Earned super normal profits 2. Geospatial services provided by this company are highly technical, and therefore functionally dissimilar to the taxpayer. Diverse and high end services in the nature of knowledge process outsourcing, and therefore functionally dissimilar to the taxpayer. Cosmic s employee cost is less than per cent and most of the cost is with reference to outsourcing charges or translation charges, and therefore is not a comparable company. 1. The engineering design segment selected by the TPO provides high end services, and is therefore not comparable to the taxpayer 2. Allocation of expenses between segments is not possible and depreciation was not allocated between the segments 3. Profits have been impacted by extraordinary events. 1. Earned super normal profits 2. Extraordinary events on account of acquisition impacting the profits. Infosys to be rejected on the basis of functional dissimilarity on account of its brand value and huge asset base. Genesys to be rejected on functional dissimilarity. Eclerx to be rejected on functional dissimilarity. Cosmic to be rejected on turnover filter, revenue of the comparable segment (i.e. accounts BPO segment) being INR2.78 million. Acropetal to be rejected on functional dissimilarity 5. Accentia to be rejected on account of extraordinary events during the year. 5 In the case of Hyundai Motors, since the taxpayer is also engaged in the provision of engineering design services, the Tribunal did not reject it on functional dissimilarity at segment level. However, due to lack of information on the segmental allocation of expenditure, Acropetal has been restored to the TPO/AO for fresh consideration on the PLI
4 Company Taxpayer s objections Tribunal s findings Crossdomain Solutions Private Limited (Crossdomain) 1. The TPO obtained information under Section 133(6) of the Income-tax Act, 1961 (the Act), which is not available in the public domain 2. Functionally not comparable. Due to variation between the information in the annual report and the figures adopted by the TPO, Crossdomain to be restored to the TPO/AO for fresh consideration on the PLI after considering the taxpayer s objections 6. Further, the taxpayer in the case of Capital IQ, in addition to its contention on comparables selected by the TPO, also made its contentions on rejection of the two comparables selected by it, excluded by the TPO. The table below summarises the contention of the TPO on those companies, and the Tribunal s findings on the same: Company TPO s objections Tribunal s finding Allsec Technologies Limited (Allsec) Cepha Imaging Private Limited (Cepha) Failed export sales filter determined at per cent, as against 75 per cent considered for the application of the filter. Cepha is engaged in the business of e-publishing services, and therefore functionally is not comparable. Allsec to be included as comparable on the basis of the fact that Allsec is functionally comparable and cannot be rejected for a miniscule difference. Cepha to be rejected on functional dissimilarity. On the taxpayer s 7 contention of risk adjustment of 1 per cent based on the Hyderabad Tribunal s ruling in the case of Hellosoft India Private Limited 8, the Tribunal asserted that the risk profile of each of the assesses differs, and therefore a standard deduction of 1 per cent cannot be adopted as a norm. The Tribunal directed the TPO/AO to examine the risk profile of the taxpayer and allow necessary deduction based on the facts of each case. The Tribunal also directed the TPO/AO to allow the working capital adjustment as already provided in the computation by the TPO. Our comments The Tribunal s leeway on acceptance of Allsec, despite failing export filter by a miniscule difference, demonstrates the Tribunal s intention to deliver a fair judgment to the taxpayer. The rulings delivered by the Hyderabad Tribunal are bound to bring cheer to the companies engaged in the provision of IT enabled services. The revised PLI, along with the risk and working capital adjustment are likely to bring down the arm s length margin, and hence the transfer pricing adjustment. The rulings may go a long way in providing guidance to the pending litigation cases. 6 No objection has been raised to the Tribunal on selection of Crossdomain in the case of Capital IQ 7 In the case of Capital IQ, the risk adjustment has not been discussed in the ruling 8 DCIT v. Hellosoft India Private Limited (ITA No.645/Hyd/09)
5 Ahmedabad Commerce House V, 9th Floor, 902 & 903, Near Vodafone House, Corporate Road, Prahlad Nagar, Ahmedabad Tel: Fax: Bengaluru Maruthi Info-Tech Centre 11-12/1, Inner Ring Road Koramangala, Bangalore Tel: Fax: Chandigarh SCO (Ist Floor) Sector 8C, Madhya Marg Chandigarh Tel: /781 Fax: Chennai No.10, Mahatma Gandhi Road Nungambakkam Chennai Tel: Fax: Delhi Building No.10, 8th Floor DLF Cyber City, Phase II Gurgaon, Haryana Tel: Fax: Hyderabad /2 Reliance Humsafar, 4th Floor Road No.11, Banjara Hills Hyderabad Tel: Fax: Kochi Syama Business Center 3rd Floor, NH By Pass Road, Vytilla, Kochi Tel: Fax: Kolkata Unit No , 6th Floor, Tower 1, Godrej Waterside, Sector V, Salt Lake, Kolkata Tel: Fax: Mumbai Lodha Excelus, Apollo Mills N. M. Joshi Marg Mahalaxmi, Mumbai Tel: Fax: Pune 703, Godrej Castlemaine Bund Garden Pune Tel: Fax: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The 2014 KPMG KPMG, name, an Indian logo and Registered cutting through Partnership complexity and a member are registered firm of the trademarks KPMG network of KPMG of independent International member Cooperative firms ( KPMG affiliated International ), with KPMG International a Swiss entity.
Background. Facts of the case. 11 April 2016
11 April 2016 Turnover filter considered at 10 times; Comparables with RPTs up to 15 percent accepted; standard deduction of +/- 5 percent benefit under the erstwhile provisions of Incometax Act confirmed
More informationIndian subsidiary of group holding company of Netherlands entity does not constitute permanent establishment in India
15 February 2017 Indian subsidiary of group holding company of Netherlands entity does not constitute permanent establishment in India Background Recently, the Delhi Bench of the Income-tax Appellate Tribunal
More informationThe CBDT issues draft guiding principles for determination of the Place of Effective Management of a company
24 December 2015 The CBDT issues draft guiding principles for determination of the Place of Effective Management of a company Background The Finance Act, 2015 amended 1 the provisions of Section 6(3) of
More informationCBDT issues draft rules for computation of fair market value and reporting requirement in relation to indirect transfer provisions
24 May 2016 CBDT issues draft rules for computation of fair market value and reporting requirement in relation to indirect transfer provisions According to the provisions of Section 9(1)(i) 1 of the Income-tax
More information40 per cent of the global profit to Indian PE is attributed based on the functions performed, assets deployed and risk assumed
27 April 2017 40 per cent of the global profit to Indian PE is attributed based on the functions performed, assets deployed and risk assumed Background The Bengaluru Bench of Income-tax Appellate Tribunal
More informationIFRS Notes. MCA notifies amendments to the consolidation exception for investment entities. 19 April kpmg.com/in
IFRS Notes MCA notifies amendments to the consolidation exception for investment entities 19 April 2016 kpmg.com/in Introduction On 30 March 2016, the Ministry of Corporate Affairs (MCA) notified the Companies
More informationKPMG FLASH NEWS. Background. Facts of the case. 2 March 2015 KPMG IN INDIA
KPMG FLASH NEWS KPMG IN INDIA Consideration for sale of capacity in the undersea cable system is not considered as royalty but as business income. The sale was concluded outside India on a principal to
More informationBEPS Action Plan 4 Elements of the design and operation of the Group Ratio Rule - Public discussion draft
18 July 2016 BEPS Action Plan 4 Elements of the design and operation of the Group Ratio Rule - Public discussion draft Introduction and Background The discussion draft issued by the Organisation for Economic
More informationAn analysis of the report of the High Level Committee on CSR provisions
KPMG FLASH NEWS KPMG in India 15 October 2015 An analysis of the report of the High Level Committee on CSR provisions Background India is the first country to introduce a legal requirement for companies
More informationQuasi capital transaction, not an interest simplictor and notional interest adjustment deleted
2 May 2017 Quasi capital transaction, not an interest simplictor and notional interest adjustment deleted Background Recently, the Ahmedabad Bench of the Income-tax Appellate Tribunal (the Tribunal) in
More informationAmendments to SEBI Delisting and Takeover Regulations
KPMG FLASH NEWS KPMG in India 14 April 2015 Amendments to SEBI Delisting and Takeover Regulations Background The Securities Exchange Board of India (SEBI) on 24 March 2015 has notified amendments to regulations
More informationSurcharge and education cess cannot be levied on the tax deducted at source based on Section 206AA of the Act
1 February 2017 Surcharge and education cess cannot be levied on the tax deducted at source based on Section 206AA of the Act Background Recently, the Delhi Bench of the Income-tax Appellate Tribunal (the
More informationThe Bombay High Court s decision on Section 14A of the Income-tax Act and the binding precedent
14 March 2016 The Bombay High Court s decision on Section 14A of the Income-tax Act and the binding precedent Background Recently, the Bombay High Court, in the case of HDFC Bank Ltd. 1 (the taxpayer)
More informationGains arising in the hands of Mauritian company from sale of equity shares and CCDs of an Indian company are not taxable as interest income in India
KPMG FLASH NEWS KPMG IN INDIA Gains arising in the hands of Mauritian company from sale of equity shares and CCDs of an Indian company are not taxable as interest income in India 5 August 2014 Background
More informationTransfer Pricing adjustment in relation to intra-group services deleted; payment of 2 per cent on sales considered to be at arm s length
16 February 2016 Transfer Pricing adjustment in relation to intra-group services deleted; payment of 2 per cent on sales considered to be at arm s length Background Recently, the Kolkata Bench of the Income
More informationKPMG FLASH NEWS. Transfer Pricing - Safe Harbour Rules Notified. Background. 20 September 2013 KPMG IN INDIA
KPMG FLASH NEWS KPMG IN INDIA Transfer Pricing - Safe Harbour Rules Notified 20 September 2013 Background To reduce increasing number of transfer pricing audits and prolonged disputes, the Central Board
More informationBackground. Facts of the case. 16 February 2017
16 February 2017 If a tax officer finds the claim of expenditure incurred in relation to exempt income is incorrect, Rule 8D can be invoked even if the incorrect claim or disallowable expenditure is not
More informationThe Indian company constitutes dependent agent permanent establishment of the US television company
KPMG FLASH NEWS 18 December 2015 KPMG in India The Indian company constitutes dependent agent permanent establishment of the US television company Background Recently, the Mumbai Bench of the Income-tax
More informationFacts of the case. Background. 18 March 2016
18 March 2016 Subsidies for reimbursement of cost relating to manufacture or sale of products of an industrial undertaking are eligible for deduction under Section 80-IB and 80-IC of the Income-tax Act
More informationCBDT notifies revised ICDS
5 October 2016 CBDT notifies revised ICDS Background On 31 March 2015, the Ministry of Finance (MoF) issued 10 Income Computation and Disclosure Standards (ICDS), operationalising a new framework for computation
More informationKPMG FLASH NEWS. Facts of the case. Background 1. Issue of corporate guarantee KPMG IN INDIA. 18 March 2014
KPMG FLASH NEWS KPMG IN INDIA The Delhi Tribunal held that corporate guarantee issued for AEs benefit, which did not cost anything to the taxpayer, does not constitute international transaction. The Tribunal
More informationIFRS Notes. 5 January 2015 Issue 2015/01. Government announces roadmap for implementation of Ind AS
IFRS Notes 5 January Issue /01 Government announces roadmap for implementation of Ind AS IFRS Notes 5 January The new year heralds an important update; on 2 January the Ministry of Corporate Affairs (MCA)
More informationFIRST NOTES KPMG in India. The ICAI issues a guidance note on accounting for derivative contracts. 18 May Background
FIRST NOTES KPMG in India The ICAI issues a guidance note on accounting for derivative contracts 18 May 2015 First Notes on: Financial Reporting Corporate law updates Regulatory and other information Disclosures
More informationMCA proposes to notify the provisions relating to restriction on layers of subsidiaries under the Companies Act, 2013
First Notes MCA proposes to notify the provisions relating to restriction on layers of subsidiaries under the Companies Act, 2013 14 July 2017 First Notes on Financial reporting Corporate law updates Regulatory
More informationIFRS Notes. Ind AS Transition Facilitation Group (ITFG) issues Clarifications Bulletin May KPMG.com/in
IFRS Notes Ind AS Transition Facilitation Group (ITFG) issues Clarifications Bulletin 9 29 May 2017 KPMG.com/in Introduction ITFG in its meeting considered certain issues received from the members of the
More informationRules relating to compromises, arrangements, amalgamations and capital reduction notified
16 December 2016 Rules relating to compromises, arrangements, amalgamations and capital reduction notified Background The Ministry of Corporate Affairs (MCA) has issued two notifications viz. Companies
More informationThis issue of First Notes highlights key aspects of the guidance note issued by the ICAI.
FIRST NOTES KPMG in India The ICAI issues a guidance note on accounting for expenditure on corporate social responsibility (CSR) activities 28 May 2015 First Notes on: Financial Reporting Corporate law
More informationIFRS Notes. MCA issues amendments to Ind AS 102 and Ind AS March KPMG.com/in
IFRS Notes MCA issues amendments to Ind AS 102 and Ind AS 7 30 March 2017 KPMG.com/in Background The Ministry of Corporate Affairs (MCA), through its notification dated 16 February 2015, issued the Indian
More informationFIRST NOTES KPMG in India. The MCA provides further clarity on deposit related norms of the Companies Act, April 2015
FIRST NOTES KPMG in India The MCA provides further clarity on deposit related norms of the Companies Act, 2013 2 April 2015 First Notes on: Financial Reporting Corporate law updates Regulatory other information
More informationFIRST NOTES KPMG in India. The Ministry of Finance issues revised drafts on tax computation standards. 14 January 2015
FIRST NOTES KPMG in India The Ministry of Finance issues revised drafts on tax computation standards 14 January 2015 First Notes on: Financial Reporting Corporate law updates Regulatory and other information
More informationIFRS Notes. SEBI clarifies the applicability of Ind AS to disclosures in offer documents. 11 April kpmg.com/in
IFRS Notes SEBI clarifies the applicability of to disclosures in offer documents 11 April 2016 kpmg.com/in Introduction On 31 March 2016, the Securities and Exchange Board of India (SEBI) issued a circular
More information2 The dedicated private bandwidth' means a certain portion of total data
13 February 2017 Payment for international private leased circuit and connectivity charges for use of private bandwidth in underwater sea cable are not taxable as royalty or FTS Background Recently, the
More informationOECD BEPS Action Plan 7: Discussion Draft on preventing artificial avoidance of permanent establishment status
KPMG FLASH NEWS KPMG IN INDIA OECD BEPS Action Plan 7: Discussion Draft on preventing artificial avoidance of permanent establishment status 14 November 2014 Background The Organisation for Economic Co-operation
More informationAction 6 Preventing the granting of treaty benefits in inappropriate circumstances
KPMG FLASH NEWS KPMG in India 30 October 2015 Action 6 Preventing the granting of treaty benefits in inappropriate circumstances Introduction Analysis of the Action 6 On 5 October 2015, the Organisation
More informationFirst Notes. MCA amends provisions relating to independent directors under the Companies Act, July 2017
First Notes MCA amends provisions relating to independent directors under the Companies Act, 2013 14 July 2017 First Notes on Financial reporting Corporate law updates Regulatory and other information
More informationDisallowance under Section 14A does not apply to computation of MAT
18 July 2017 Disallowance under Section 14A does not apply to computation of MAT Background Recently, the Delhi Special Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Vireet Investment
More informationCapital surplus on account of waiver of loan is neither taxable nor can be included in computation of book profit under the provisions of MAT
6 March 2017 Capital surplus on account of waiver of loan is neither taxable nor can be included in computation of book profit under the provisions of MAT Background Recently, the Mumbai Bench of the Income-tax
More informationTaxability of Crossborder. under Service tax. September 2014
Taxability of Crossborder transactions under Service tax September 2014 Contents 1 Relevance 2 Place of Provision of Services Rules, 2012 3 Infosys Ruling 4 Global Developments 5 Key areas for consideration
More informationThe MCA amends share capital and debenture rules and documents to be submitted by airline companies
First Notes The MCA amends share capital and debenture rules and documents to be submitted by airline companies 8 August 2016 First Notes on Financial Reporting Corporate law updates Regulatory and other
More informationCBDT Circular - FAQs on indirect transfer related provisions under the Income-tax Act
22 December 2016 CBDT Circular - FAQs on indirect transfer related provisions under the Income-tax Act The Finance Act, 2012 introduced indirect transfer related provisions under Section 9(1)(i) of the
More informationDelhi High Court holds on the taxability of offshore and onshore supply and services under the composite contract
KPMG FLASH NEWS KPMG IN INDIA Delhi High Court holds on the taxability of offshore and onshore supply and services under the composite contract 29 April 2014 Background Recently, the Delhi High Court in
More informationFIRST NOTES KPMG in India. Notification of provisions relating to corporate social responsibility under the Companies Act, 2013.
FIRST NOTES KPMG in India Notification of provisions relating to corporate social responsibility under the Companies Act, 2013 28 February 2014 First Notes on: Financial Reporting Corporate law updates
More informationCopyright subsists in the news reports and photographs supplied by a French news agency, therefore, payments for the use of same is taxable as royalty
KPMG FLASH NEWS KPMG IN INDIA Copyright subsists in the news reports and photographs supplied by a French news agency, therefore, payments for the use of same is taxable as royalty 24 September 2014 Background
More informationInsurance. Ind AS- The road ahead. October KPMG.com/in
Insurance Ind AS- The road ahead October 2016 KPMG.com/in IFRS Convergence in India: A quick recap Previous plan 1 April 2011 Finance minister s speech in July 2014 January 2015 press release on revised
More informationProposed amendments to the Finance Bill, 2016
6 May 2016 Proposed amendments to the Finance Bill, 2016 Background The Finance Bill, 2016 (the Bill) was introduced by the Finance Minister in the Lok Sabha on 29 February 2016. On 5 May 2016, the amendments
More informationIICA ICAI Workshop on IFRS Issues in Transition Session II Taxation Issues
ACCOUNTING ADVISORY SERVICES IICA ICAI Workshop on IFRS Issues in Transition Session II Taxation Issues September 27, 2010 ADVISORY 1 Contents 1. Taxation issues on transition 2. International experience
More informationKey decisions by the GST Council to address concerns of trade and industry
abap 14 September Key decisions by the GST Council to address concerns of trade and industry Background The GST Council, met for the twenty-first time on 9 September (second meeting post implementation
More informationLoss claimed on account of the transaction of renunciation of rights is a colourable device
KPMG FLASH NEWS 7 December 2015 KPMG in India Loss claimed on account of the transaction of renunciation of rights is a colourable device Background Recently, the Delhi High Court in the case of Abhinandan
More informationKPMG FLASH NEWS. BEPS - OECD Releases reports on 7 out of 15 action points. Background. 17 September KPMG in INDIA
KPMG FLASH NEWS KPMG in INDIA BEPS - OECD Releases reports on 7 out of 15 action points 17 September 2014 Background At the request of the G201 Finance Ministers, the Organisation for Economic Co-operation
More informationMajor FDI Policy reforms notified
KPMG FLASH NEWS KPMG in India 27 November 2015 Major FDI Policy reforms notified Background The Department of Industrial Policy and Promotion (DIPP) vide Press Note 12 dated 24 November 2015 (Press Note)
More informationBackground. Facts of the case. 28 September 2017
28 September 2017 Transaction-by-transaction analysis to be considered; Bundled benchmarking approach is neither automatic nor mandate of law; provision for warranty not created on historical trend is
More informationBackground. Facts of the case. 19 December 2017
19 December 2017 Corporate/bank guarantee fees received by a foreign holding company cannot be treated as interest in view of Other Income article under the India-U.K. tax treaty and it is taxable under
More informationOn 1 February 2016, the Companies Law Committee (CLC) submitted its recommendations to the government.
First Notes The proposed Companies (Amendment) Bill, 2016 31 March 2016 First Notes on Financial reporting Corporate law updates Regulatory and other information Disclosures Sector All Banking and insurance
More informationSEBI Clarification on Know Your Client Requirements for Foreign Portfolio Investors
12 April 2018 SEBI Clarification on Know Your Client Requirements for Foreign Portfolio Investors Recently, the SEBI has issued a clarification outlining the key features of the Circular modifying the
More informationCapital gains arising to Netherlands entity on sale of shares of its Indian subsidiary deriving its value from immovable property is n
Flash news 9 July 2017 Capital gains arising to Netherlands entity on sale of shares of its Indian subsidiary deriving its value from immovable property is not taxable in India under the India-Netherlands
More information28 October Background. Facts of the case. Flash News
Flash News 28 October 2017 Indian subsidiary of a foreign company providing back office support services does not constitute a PE in India under India- USA tax treaty Supreme Court Background Recently,
More informationIFRS Notes. MCA issues amendments to Ind AS effective 1 April April KPMG.com/in
IFRS Notes MCA issues amendments to Ind AS effective 1 April 2018 10 April 2018 KPMG.com/in Introduction The Ministry of Corporate Affairs (MCA), on 28 March 2018, issued certain amendments to Ind AS.
More informationIFRS Notes. Ind AS Transition Facilitation Group (ITFG) issues Clarifications Bulletin August KPMG.com/in
IFRS Notes Ind AS Transition Facilitation Group (ITFG) issues Clarifications Bulletin 11 21 August 2017 KPMG.com/in Introduction The ITFG in its meeting considered certain issues received from the members
More informationCBDT issues FAQs on Income Computation and Disclosure Standards
24 March 2017 CBDT issues FAQs on Income Computation and Disclosure Standards The Central Board of Direct Taxes (CBDT) has notified 1 Income Computation and Disclosure Standards (ICDS), with effect from
More informationFinal rules on Master File and Country by Country reporting released by Indian Government
2 November 2017 Final rules on Master File and Country by Country reporting released by Indian Government Background In keeping with India s commitment to implement the recommendations of Action Plan 13
More informationBackground. Facts of the case. 1 March 2018
1 March 2018 If the POEM of an enterprise is not situated in one of the contracting states but is situated in the third state, the benefit of the shipping and air transport article of the India-Mauritius
More informationIFRS Notes. The implementation group in the insurance sector submits its report on Ind AS to IRDAI. 6 January Kpmg.com/in
IFRS Notes The implementation group in the insurance sector submits its report on Ind AS to IRDAI 6 January 2017 Kpmg.com/in Introduction On 30 December 2016, the Insurance Regulatory and Development Authority
More informationIndia signs the Multilateral Convention
9 June 2017 India signs the Multilateral Convention India, amongst 67 countries, has signed the Multilateral Convention (the Convention/MLI) in Paris on 7 June, 2017 to implement tax treaty related measures
More informationIFRS Notes. CBDT issues FAQs on computation of book profit for levy of MAT and proposes amendment to Section 115JB. 26 July KPMG.
IFRS Notes CBDT issues FAQs on computation of book profit for levy of MAT and proposes amendment to Section 115JB 26 July 2017 KPMG.com/in Introduction With the adoption of Indian Accounting Standards
More informationBBSR & Co. LLP. Business Restructuring. Munjal Almoula Nikhil Dhariwal. 11 April 2015
BBSR & Co. LLP Business Restructuring 11 April 2015 Munjal Almoula Nikhil Dhariwal Contents 1 Introduction and Relevance 2 Rationale for restructuring 3 Types of Restructuring 4 Transaction, Benchmarking
More informationClarification on applicability date of formats for financial results and intimation of reasons for delay in submission of financial results
IFRS Notes Clarification on applicability date of formats for financial results and intimation of reasons for delay in submission of financial results 7 December 2018 KPMG.com/in IFRS NOTES 7 December
More informationMembership fees and contribution received by a foreign nonprofit organisation are not liable to tax in India on the principle of mutuality
525 June April 2018 2018 Membership fees and contribution received by a foreign nonprofit organisation are not liable to tax in India on the principle of mutuality Background The Authority for Advance
More informationIASB provides guidance on making materiality judgements and proposes amendments to the definition of material
IFRS Notes IASB provides guidance on making materiality judgements and proposes amendments to the definition of material 23 October 2017 KPMG.com/in IFRS NOTES 23 October 2017 Background International
More informationICAI issues exposure drafts of AS 23, Borrowing Costs
First Notes ICAI issues exposure drafts of AS 23, Borrowing Costs and AS 24, Related Party Disclosures 1 November 2017 First Notes on Financial reporting Corporate law updates Regulatory and other information
More informationFirst Notes. QRB issued its report on audit quality review of top listed and public interest entities in India. 13 December 2017.
First Notes QRB issued its report on audit quality review of top listed and public interest entities in India 13 December 2017 First Notes on Financial reporting Corporate law updates Regulatory and other
More informationFirst Notes. SEBI relaxes norms governing schemes of arrangements by listed entities. 18 January Background
First Notes SEBI relaxes norms governing schemes of arrangements by listed entities 18 January 2018 First Notes on Financial reporting Corporate law updates Regulatory and other information Disclosures
More informationIndia's New Advance Pricing Agreement (APA) Program
cutting through complexity / India's New Advance Pricing Agreement (APA) Program Presenter r Alpana Saksena International Tax Conference Mumbai Dec 7, 2012 ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED
More informationFirst Notes. CBDT issues FAQs on ICDS. 28 March Background
First Notes CBDT issues FAQs on ICDS 28 March 2017 First Notes on Financial reporting Corporate law updates Regulatory and other information Disclosures Sector All Banking and insurance Information, communication,
More informationIFRS Notes. Ind AS Transition Facilitation Group (ITFG) issues Clarifications Bulletin November KPMG.com/in
IFRS Notes Ind AS Transition Facilitation Group (ITFG) issues Clarifications Bulletin 12 8 November 2017 KPMG.com/in Introduction The Ind AS Transition Facilitation Group (ITFG) in its meeting considered
More informationIFRS Notes. 29 October 2014 Issue 2014/02. IFRS Convergence: ICAI issues exposure drafts on financial instruments and revenue recognition
IFRS Notes 29 October 2014 Issue 2014/02 IFRS Convergence: ICAI issues exposure drafts on financial instruments and revenue recognition Recently, the Accounting Standards Board (ASB) of the Institute of
More informationFirst Notes. SEBI decisions regarding the Report of the Committee on Corporate Governance. 20 April Background
First Notes SEBI decisions regarding the Report of the Committee on Corporate Governance 0 April 08 First Notes on Financial reporting Corporate law updates Regulatory and other information Disclosures
More informationApplicability of time limit for proceedings under Section 201 of the Income-tax Act for non-compliance of TDS provisions
26 July 2017 Applicability of time limit for proceedings under Section 201 of the Income-tax Act for non-compliance of TDS provisions Background Recently, the Allahabad High Court in the case of Mass Awash
More informationIndian subsidiary does not constitute a PE of a foreign company in India under the India-Saudi Arabia tax treaty
20 25 June April 2018 Indian subsidiary does not constitute a PE of a foreign company in India under the India-Saudi Arabia tax treaty Background Recently, the Authority for Advance Rulings (AAR) in the
More informationPayments received for the content delivery solutions for accelerating content and business processes online are not in the nature of FTS/royalty
31 25 May April 2018 Payments received for the content delivery solutions for accelerating content and business processes online are not in the nature of FTS/royalty Background Recently, the Authority
More informationTax and Transfer Pricing Alert Insight with information. Marketing Intangibles A Different Approach?
India Tax & Regulatory For private circulation only 28 June 2017 p Tax and Transfer Pricing Alert Insight with information Marketing Intangibles A Different Approach? Issue no: TP/7/2017 In this issue:
More informationIFRS Notes. Ind AS 115 applicable from 1 April April KPMG.com/in
IFRS Notes Ind AS 115 applicable from 1 April 2018 11 April 2018 KPMG.com/in Introduction The Ministry of Corporate Affairs (MCA), on 28 March 2018, notified Ind AS 115, Revenue from Contracts with Customers
More informationSharing insights. News Alert 23 February, 2011
www.pwc.com/in Sharing insights News Alert 23 February, 2011 Transfer Pricing Officer cannot propose any adjustment to a transaction in the absence of a valid reference for the transaction by the Assessing
More informationSharing insights. News Alert 1 February, 2012
www.pwc.com/in Sharing insights News Alert 1 February, 2012 Sharing of net revenues consistently in controlled and uncontrolled transactions held as a valid comparable uncontrolled price In brief In a
More informationFirst Notes. MCA notified certain provisions of the Companies (Amendment) Act, May Introduction. Loans and investments by companies
First Notes MCA notified certain provisions of the Companies () Act, 2017 28 May 2018 First Notes on Financial reporting Corporate law updates Regulatory and other information Disclosures Sector All Banking
More informationIFRS Notes. Ind AS Transition Facilitation Group (ITFG) issues Clarifications Bulletin April KPMG.com/in
IFRS Notes Ind AS Transition Facilitation Group (ITFG) issues Clarifications Bulletin 15 18 April 2018 KPMG.com/in Introduction The Ind AS Transition Facilitation Group (ITFG) in its meeting considered
More informationIndia s reservations on 2017 update to the OECD Model Tax Convention and Commentary
30 November 2017 India s reservations on 2017 update to the OECD Model Tax Convention and Commentary Background Recently, the Organisation for Economic Cooperation and Development (OECD) Council approved
More informationSpace provided by an organiser to a foreign entity for rendering services relating to an event constitutes a PE in India
19 January 2018 Space provided by an organiser to a foreign entity for rendering services relating to an event constitutes a PE in India Background Recently, the Authority for Advance Rulings (AAR) in
More informationIFRS Notes. IFRS convergence a reality now! MCA notifies Ind AS standards and implementation roadmap. 23 February 2015 Issue 2015/02
IFRS Notes 23 February 2015 Issue 2015/02 IFRS convergence a reality now! MCA notifies Ind AS standards and implementation roadmap The Ministry of Corporate Affairs has finally notified the much awaited
More informationFacts of the case. Background. 19 January 2018
19 January 2018 Payment for offshore supply of an equipment is not taxable in India, whereas, supervisory services for installation of such equipment are taxable in India Background Recently, the Authority
More informationTax and Transfer Pricing Alert Insight with information
India Tax & Regulatory For private circulation only 31 May 2017 p Tax and Transfer Pricing Alert Insight with information Every outstanding receivables does not constitute an international transaction.
More informationEaswar Committee report on the simplification of various provisions of the Income-tax Act
20 January 2016 Easwar Committee report on the simplification of various provisions of the Income-tax Act In October 2015, the Central Government constituted a committee under the chairmanship of Justice
More informationTaxation of Shares & Securities
Taxation of Shares & Securities - Special emphasis on taxation issues relating to non-residents CA Vishal Gada WIRC - Mumbai 7 January 2012 Contents Investment avenue for Non-residents Scheme of ADRs /
More informationMergers and Acquisition Alert Stay Ahead. Issue no: M&A/02/2018. In this issue:
India Tax & Regulatory For private circulation only 11 May 2018 Mergers and Acquisition Alert Stay Ahead Transfer of a capital asset to a step-down wholly-owned subsidiary not taxable under section 47(iv),
More informationFacts of the case. Background. Flash news
Flash news No transfer results for capital gains taxation if joint development agreement is not registered; income cannot be taxed on a hypothetical basis Supreme Court Background The Supreme Court in
More informationGlobal payment solution provider company has a permanent establishment in India
17 25 July April 2018 2018 Global payment solution provider company has a permanent establishment in India Background Recently, the Authority for Advance Rulings (AAR) in the case of MasterCard Asia Pacific
More informationITAT Bengaluru reaffirms payment for Adwords program as royalty in case of Google India* Global Business Tax Alert Sharp Insights
India Tax & Regulatory For private circulation only 17 May 2018 p Global Business Tax Alert Sharp Insights ITAT Bengaluru reaffirms payment for Adwords program as royalty in case of Google India* *[2018]
More information24 April EY Tax Alert. Mumbai Tribunal rules that itemized sale of assets with an intention to transfer entire undertaking is a slump sale
24 April 2012 EY Tax Alert Mumbai Tribunal rules that itemized sale of assets with an intention to transfer entire undertaking is a slump sale Executive summary This Tax Alert summarises a recent ruling
More informationBackground. AAR ruling. Facts of the case. Permanent Establishment. 10 April 2018
10 April 2018 Vessels engaged in seismic surveys on the high seas, in connection with the exploration of mineral oil/natural resources, constitute fixed place PE under the India-UAE tax treaty Background
More informationUse of Berry ratio as PLI upheld
from India Tax & Regulatory Services Use of Berry ratio as PLI upheld August 3, 2015 In brief In a recent ruling, the Delhi Bench of the Income-tax Appellate Tribunal (Tribunal), placing extensive reliance
More informationSharing insights Tribunal upholds important transfer pricing principles on characterisation and rewards for selling activity In brief Facts
www.pwc.com/in Sharing insights News Alert 1 March, 2012 Tribunal upholds important transfer pricing principles on characterisation and rewards for selling activity In brief In a recent ruling in the case
More information