We are pleased to attach herewith the Tax & Regulatory Newsletter for March 16-31, 2018 highlighting major recent tax and regulatory developments in India.

 

Inside this issue…

 

DIRECT TAX                                                                                                                                                      

  1. Delhi Tribunal rules that the services provided by the seconded employees of the parent company to the subsidiary company do not constitute fixed place Permanent Establishment (“PE”) as the employees are carrying out functions & activities of Indian subsidiary and interaction between such employee and parent company as communication channel/ exchange of information not more than preparatory & auxiliary activities, that qualifies for exemption under Article 5 of India-Korea tax treaty from definition and scope of PE
  2. India Signs Agreement for the Avoidance of Double Taxation with Hong Kong

 

INTERNATIONAL TAX

  1. Multilateral BEPS Convention will enter into force on 1 July following Slovenia’s ratification
  2. OECD releases additional guidance on the attribution of profits to a Permanent Establishment (‘PE’) under BEPS Action 7
  3. South Korean Regulators to Release Crypto Tax Framework by June
  4. Thailand Inches Closer to Cryptocurrency Taxation
  5. Netherlands and Luxembourg join Ireland as wary of digital tax

 

TRANSFER PRICING

  1. ITAT dismisses Revenue’s appeal and held that TP-adjustment on reimbursement of seconded employees’ salary is unsustainable
  2. ITAT considers segmental profitability using man hour based allocation and relies on APA signed for other years

 

NANGIA & CO LLP

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Nangia & Co LLP- Tax & Regulatory Newsletter , March 16-31, 2018