Tax insights

Newsflash - Highlights of 43rd GST Council Meeting

15 June 2021

The 43rd GST Council meeting held on 28 May 2021 primarily to consider the proposal for a reduction in the tax rate for medical goods and other rationalization of provisions. The highlights of the same are as mentioned below:

Newsflash - Government Extends Time Limits for Certain Compliances

15 June 2021

The Government has vide Circular No. 9 of 2021 F. NO.225/49/2021-ITA-II dated 20th May 2021 provided relaxation with regards to certain upcoming compliance due dates considering the ongoing severe pandemic situation in the country.

Newsflash - Delhi High Court allows reduced withholding rate under DTAAs of OECD Countries pursuant to MFN clause in India-Netherlands DTAA

17 May 2021

The Finance Act, 2020 amended the provisions with respect to taxation of dividends whereby Dividend Distribution Tax (DDT) was abolished and classical system of dividend taxation was adopted. In consequence of such amendment, Dividends now paid by Indian companies are taxed in the hands of shareholders and accordingly subjected to withholding tax.

White Paper - RoDTEP Scheme – An Analysis

17 May 2021

As you may be aware, the Indian government has notified the RoDTEP scheme with effect from 01 January 2021. Though the scheme has been notified, it is not yet operational and there are many areas of uncertainty that are leaving the exporters puzzled.

Newsflash - CBDT Notifies Compliance Procedures for Non-Profit Entities

17 May 2021

The Finance Act of 2020 had made significant changes to the governance framework for the charitable entities which revamped the procedure for obtaining registration / re-registration for Charitable entities registered u/s 12AA and 80G of the Income Tax Act, 1961 (‘IT Act’).

Newsflash - Recent Changes - Residential Status for Indian Tax Purposes – NRIs

17 May 2021

The residential status of an individual for tax purposes is crucial for determination of the taxable income. In India, an individual is treated as either “Resident” or “Non-resident” (‘NRs’) for tax purposes. Residents are further classified into “Resident and Ordinary Resident” (‘ROR’)” or “Resident but Not Ordinarily Resident in India” (‘RNOR’).

Newsflash - Amendments in Rule 10DA (Master File) and Rule 10DB (CbCR) of Income-tax Rules, 1962

17 May 2021

On 5 April 2021, Central Board of Direct Taxes (CBDT) made an amendment through Notification No. 31/2021 [F.No.370142/19/2019-TPL] in Rule 10DA and Rule 10DB of the Income-tax Rules, 1962 for laying down the guidelines for maintaining and furnishing of transfer pricing documentation in the Master File and Country-by-Country report (‘CbCR’).

Newsflash - Determination of Residential Status of Certain Individuals under Income-Tax Act, 1961 with regards to the Covid-19 Situation

20 March 2021

Recently, the CBDT has issued Circular no. 2 dated 3 March 2021, wherein it has provided guidance on determination of residential status of such individual, whose movement was restricted due to Covid related restrictions.

Newsflash - Supreme Court Rules that Payment towards Software not in the nature of Royalty under the Tax Treaties

19 March 2021

The Hon’ble Supreme Court this week delivered a judgement for a batch of over 86 appeals on a two-decade old controversy of taxation of payment for software.

Title Newsflash on Major Amendments in GST Rules

19 March 2021

The taxpayers, having aggregate turnover exceeding Rs.50 crores in any preceding financial year from FY 2017-18, are required to comply with e-invoicing provision with effect from 1 April 2021 in accordance with the recent Notification No.05/2021- Central Tax dated 8 March 2021 read with principal Notification No.13/202

Newsflash on Major Amendments in GST Rules

19 March 2021

The Government has carried out some major amendment in Central GST Rules, 2017 vide Notification No.94/2020-Central Tax, dated 22 December 2020. The highlights of the same are below- • Claim of un-matched input tax credit (GSTR-2A) shall be restricted up to 5% only as against present 10%.

Newsflash- Relaxation from compliance in relation to Quick Response (QR) code pertaining to E-Invoicing and clarification on the export of Gems and Jewellery through courier

19 March 2021

The Government has waived the penalty for non-compliance of QR code requirement till 31 March 2021 and also clarified the ambiguity on whether gems and jewellery are allowed to be exported through courier under the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010 as also the Courier Imports and Exports (Clearance) Regulations, 1

Newsflash on Overview of TCS applicability on sale of Goods w.e.f 1 October 2020

27 September 2020

As per section 206C(1H) of the Act, every seller, whose total sales, gross receipts or turnover from the business carried on by him exceed Rs. 10 Crores in the immediately preceding Financial Year (‘FY’) and who receives any amount as consideration for sale of any goods (excluding exports) of the value or aggregate of such value exceeding Rs.

Newsflash - CBDT Orders us 119 and Related Clarifications issued on 31 March, 3 April and 9 APril 2020 on Issuance of Lower NIL RATE TDS TCS Certificates

14 April 2020

The The CBDT has released a series of order under Section 119 and clarification with respect to ambiguity surrounding the issue of Lower Rate / Nil Rate certificates for Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) under the provisions contained in Section 195, 197 and 206C(9) for FY 2020-21 & FY 2019-20.

Significant Highlights of The Direct Tax Vivad Se Vishwas Bill, 2020

19 February 2020

In order to reduce litigation in indirect taxes, the government had in 2019 brought in the “Sabka Vishwas (Legacy Dispute Resolution) Scheme”, which received a good response. This scheme for settlement of indirect tax litigation had resulted in settling over 1,89,000 cases.

BUDGET 2020: Sectors across industry share a wish-list from tax rebates, incentives for digital payments to lowering of GST slabs

4 February 2020

BUDGET 2020: Sectors across industry share a wish-list from tax rebates, incentives for digital payments to lowering of GST slabs Scroll to the bottom for wishlist on Personal Tax by Dr Suresh Surana, founder,RSM India

Real Estate:Top 5 expectations from the upcoming Budget 2020

29 January 2020

Read below for views by Dr. Suresh Surana, Founder, RSM India

Real Estate:Top 5 expectations from the upcoming Budget 2020

Clarification on levy of SWS and extension of due date for furnishing GSTR-1 of earlier periods

27 January 2020

Clarification on levy of Social Welfare Surcharge (SWS)

White Paper: New Corporate Tax regime and IndAS – Implications

27 January 2020

The corporate tax rate for a domestic company doing business in India ranges from 26% to 34.944% for Financial Year 2019-2020. Taxation Laws (Amendment) Ordinance 2019 (‘Taxation Ordinance’) has made certain path breaking amendments in relation to taxation of domestic companies.

Restrictions on Input Tax Credit (ITC) and Standard Operating Procedure (SOP) in case of Non-filing of returns

8 January 2020

The Government has amended Central GST Rules, 2017 by inserting conditions with respect to availment of Input Tax Credit and also released Standard Operating Procedure (SOP) to be followed in case of non-filers of return. The key changes have been discussed in the newsflash enclosed herewith and we would be pleased to clarify any pertinent aspects.

CBDT Notifies specific/ prescribed electronic modes of payment for Section 269SU

1 January 2020

The Finance (No. 2) Act, 2019 had introduced Section 269SU which required every person with a business turnover, sales or gross receipts exceeding Rs. 50 crores to mandatorily provide facilities for accepting payments through prescribed electronic modes. The CBDT vide its Notification [No.105/2019/F. No.

Highlights of the 38th GST Council Meeting’s outcome

20 December 2019

The 38th GST Council meeting held on 18th December 2019 was concluded with certain decisions:

Key Highlights of Taxation Law Amendment Ordinance 2019 - September 2019

15 December 2019

Newsflash on the Taxation Laws (Amendment) Ordinance 2019 promulgated by the President of India on 20th September 2019. The said ordinance has made certain amendments in the Income-tax Act 1961 (‘IT Act’) and the Finance (No. 2) Act 2019. Some salient features include:

Highlights of 37th GST Council meeting

15 December 2019

The 37th GST Council meeting was held on 20th September 2019 to address some crucial issues and provide their recommendations. Following are key highlights of the GST Council Meeting:

Corporate tax rates slashed to 22% for domestic companies and 15% for new domestic manufacturing companies and other fiscal reliefs

15 December 2019

The Government has brought in the Taxation Laws (Amendment) Ordinance 2019 to make certain amendments in the Income-tax Act 1961 and the Finance (No. 2) Act 2019. Some salient features include:

Amendments in Finance Bill (No.2) of 2019

15 December 2019

The Finance Bill (No. 2) of 2019 (“the Bill”) was tabled in the Lok Sabha by the newly elected government on 5 July 2019 along with the Union budget/ full budget. The Lok Sabha passed the Bill with certain amendments.

India ratifies BEPS - MLI

15 December 2019

The Indian Union Cabinet has approved ratification of Multilateral Convention to implement Tax Treaty related measures to prevent base erosion and profit shifting (‘Multilateral Convention’ or ‘MLI’ or ‘the Convention’). In this regard, Press Information Bureau had issued a Press release dated 12 June 2019.

GST-Introduction to new return

15 December 2019

GST Council in its 31st meeting decided that a new GST return system will be introduced to facilitate taxpayers from October 2019 onwards. The GST Council has issued a Press Release on 11 June 2019 regarding the same. We have attached the press release for your reference. The gist of Press release is as follows:-

India deposits instrument of ratification of MLI with OECD

15 December 2019

Post approval of ratification of MLI by India, the instrument of ratification along with the list of reservations to the MLI provisions and list of covered tax agreements was deposited with OECD on 25th June, 2019. So far, 89 jurisdictions have signed the MLI, out of which 28 countries including India have already ratified this convention.

Outcome of 35th GST Council's Meeting

15 December 2019

The 35th GST Council meeting was held on 21 June 2019 at New Delhi to address some crucial issues and provide their recommendations. Following are key highlights of the GST Council Meeting :

36th GST Council meeting's outcome

15 December 2019

The 36th GST Council meeting was held on 27 July 2019 to decide GST rate on certain goods/services and also changes in certain due dates. Following are some key recommendation made by Council-

Clarification on doubts related to supply of Information Technology enabled services

15 December 2019

Clarification issued by the Central Board of Indirect Taxes and Customs (CBIC) regarding to doubts related to supply of Information Technology enabled services.

Maharashtra Amnesty Scheme - 2019

15 December 2019

Government of Maharashtra has passed an Ordinance to provide for settlement of arrears under various Acts which were in existence during pre- GST regime. Salient features of the same are mentioned below:

Clarification in respect of goods sent outside India for Exhibition

15 December 2019

Newsflash in respect of clarification issued by the Central Board of Indirect Taxes and Customs (CBIC) wherein procedure to be followed in respect of goods sent/ taken out of India for exhibition or on consignment basis for export promotion has been clarified. The major points covered in the clarification issued are as follows:

Clarification on Annual Returns (GSTR 9) and Reconciliation Statement (GSTR 9C)

15 December 2019

Newsflash on the press release issued by the Central Board of Indirect Taxes and Customs, wherein certain issues being faced by the taxpayers regarding Annual Return (FORM GSTR-9 / FORM GSTR-9A) and Reconciliation Statement (FORM GSTR-9C) have been clarified in view of numerous representations made.

CBDT relaxes CbCR furnishing deadline for entities from countries having systemic failure

15 December 2019

CBDT had prescribed 12 month time period under Rule 10DB(4) for furnishing CbCR by constituent entity of an international group resident in India under specified circumstances u/s 286(4).

Key Recommendations of 31st GST Council Meeting

14 December 2019

The Central Board of Indirect Taxes and Customs issued a press release, wherein certain issues being faced by the taxpayers regarding Annual Return (FORM GSTR-9 / FORM GSTR-9A) and Reconciliation Statement (FORM GSTR-9C) have been clarified in view of numerous representations made.

RSM India White Paper - Taxation of Businesses in Digital Era

9 November 2018

Dear All,

White Paper - Analysis of GST on Construction of Roads and Highways

5 September 2018

We are pleased to release for your kind reference the White Paper developed by our indirect taxes practise on “Analysis of GST on Construction of Roads and Highways.”

White Paper - Whether non-resident foreign companies are required to file Return of Income in India

22 August 2018

Taxation of non-residents has been a vexed issue for a long time. Applicability of tax laws of different countries makes it difficult to ascertain taxability of non-residents who have global presence.

White Paper - GST Impact on Non-banking Finance Companies

16 July 2018

Non-Banking Finance Companies (NBFCs) are companies which are, as per RBI guidelines, allowed to lend money but cannot accept deposits from the public. NBFCs are subject to several guidelines issued by the Reserve Bank of India and are a highly regulated industry.

Concept Note on GST implications for Pharmaceuticals Industry

16 July 2018

The pharmaceutical industry has been one of the engines of growth for India.

White Paper - ISD and Cross Charge Mechanism under GST regime

16 July 2018

GST was introduced on 1 July 2017 replacing multiple Indirect Taxes with a single tax. However, lot of concepts from the erstwhile law have also been carried forward in GST. Input Service Distributor “ISD” is one such concept. Further, with GST in place, a new concept of cross charge was also introduced.

GST Council releases FAQs on Banking Sector

5 June 2018

We are pleased to release our GST newsflash, highlighting certain clarifications provided by the Central Government in relation to Banking Sector, as under: · Clarifications on time of supply and place of supply in different scenarios.

GST – A Leap Forward

4 June 2018

The implementation of GST with effect from 1 July 2017 covering almost 1 crore tax filers, (with an estimated annual tax collection of Rs. 10 lakh crores) has been undoubtedly the most prolific indirect tax reform in India.

Transfer Pricing Regulations in India - In Sync with the World

24 April 2018

Multi-national enterprises (MNE) now represent a large proportion of global GDP. Also, intra-firm trade represents a growing proportion of overall trade.

Newsflash - US Tax Reforms Highlights - At a Glance

13 December 2017

We are pleased to attach our Newsflash on “The US Tax Cuts & Jobs Law - Certain Key Aspects” for your reference and perusal. The US economy is the largest economy in the world and India’s largest trade partner.

Newsflash: GST - Anti-profiteering measure by Government of India

13 December 2017

Government of India has introduced certain measures to toughen its stance on the anti-profiteering provisions by introducing certain measures. We are pleased to release newsflash on the captioned subject. The key highlights are

Newsflash: GST - Manual filing and processing of refund claims in respect of zero-rated supplies

27 November 2017

Due to the non-availability of the refund module on the common GST portal, the GST Council has recommended the applications/documents/forms pertaining to refund claims on account of zero-rated supplies to be filed and processed manually till further orders are issued. In this regard, notification no.

Newsflash: CBDT clarifies the scope of prima facie adjustments by tax authorities - Based on receipt / income appearing in Form 26AS / Form 16A / Form 16

27 November 2017

Section 143 (1) of the Income Tax Act, 1961 (‘the Act’) provides for prima facie adjustments to a return of income filed by the assessee, while processing the return of income. The ambit of prima facie adjustment was expanded by the Finance Act, 2016.

Newsflash - DTAA with Hong Kong Soon - Union Cabinet gives its approval

27 November 2017

On 10th November 2017, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi gave its approval for entering into a Double Taxation Avoidance Agreement (DTAA) with Hong Kong.

Newsflash - ITAT Deletes Sec. 271G Transfer Pricing Penalty for diamond merchants

16 November 2017

The Mumbai ITAT in the case of ACIT V/s M/S D.

Newsflash: Highlights of the 23th GST Council Meeting

13 November 2017

The 23rd GST council meeting was held on 10 November 2017 at Guwahati. The following are the key highlights of said meeting: - Proposed revised GST rates for certain goods - Proposed revised GST rate for restaurants. - Relaxation in GST return filing - Certain other aspects

Newsflash - Certain clauses of ICDS found contrary to the binding judicial precedents and thus, held unconstitutional - Delhi High Court

13 November 2017

In a path breaking judgment, the Hon’ble Delhi High Court on 8 November 2017 has ruled that certain clauses of various Income Computation and Disclosure Standards (ICDS) are unconstitutional and also suffers from the vice of excessive delegation.

Newsflash - Income Tax - Final Rules with respect to Country-by-Country reporting and furnishing of master file

13 November 2017

We are pleased to release our newsflash on the captioned subject. Background:

Newsflash - Income Tax - Regional Headquarter of Foreign Multinationals in India would not create POEM exposure where activities are of routine nature

13 November 2017

The new tax residency rule for foreign companies based on the concept of Place of Effective Management (‘PoEM’) has been effective since 1st April, 2017, i.e., Assessment Year 2017-18 onwards.

Highlights of the 22nd GST Council Meeting

13 November 2017

We are pleased to release our newsflash on the captioned subject. The 22ND GST council meeting was held on 6 October 2017 at New Delhi. The following are the key highlights of said meeting: - Proposed revised GST rates for certain services

Newsflash: Government withdraws PMLA Notification relating to Gems and Jewellery sector with immediate effect

13 November 2017

The Prevention of Money-laundering Act, 2002 (PMLA) aimed at combating money laundering in India came into force with effect from 1st July 2005. Under the PMLA, the reporting entities inter-alia, included dealer in precious metals, precious stones and other high value goods, as may be notified by the Central Government.

Newsflash - Draft Rules with respect to Country-by-Country reporting and furnishing of master file

13 November 2017

Under the Finance Act 2016, the Central Board of Direct Taxes (CBDT) had inserted section 286 in the Income Tax Act, 1961 to implement the recommendation of 2015 Final Report on Action 13, titled “Transfer Pricing Documentation and Country-by-Country Reporting”, identified under the OECD Base Erosion and Profit Shifting (BEPS) Project.

Newsflash: Form 67 enabled on Income tax e-filing portal for claiming foreign tax credit Relief

4 October 2017

A Resident taxpayer (Individual, Companies, Partnership firms, etc.) who have already paid tax in another country on amounts of foreign income and gains, may claim Foreign Tax Credit Relief in India to avoid being taxed twice on the same income.

Newsflash - CBDT Draft Notification on Self-reporting of Estimated Income, Tax Liability and Payment of Taxes

26 September 2017

In one of the recent developments, it is proposed by the Central Board of Direct Taxes (CBDT) (released for public comments) to create a mechanism for self-reporting of estimates of current income, tax payments and advance tax liability by certain taxpayers viz. companies and tax audit cases, on voluntary compliance basis.

Newsflash- Coverage of Gems and Jewellery sector under Prevention of Money Laundering Act, 2002

9 September 2017

The Prevention of Money-laundering Act, 2002 (PMLA) aimed at combating money laundering in India with three main objectives – to prevent and control money laundering, to confiscate and seize the property obtained from laundered money, and to deal with any other issue connected with money laundering in India, came into force with effect from 1st July, 2005.

Newsflash - GST: Extension of due date for filing GST Returns for July and August 2017

7 September 2017

The Government of India has further extended the due date of furnishing GST return for the month of July and August 2017. In said regards please find attached our newsflash. We trust you will find the same useful.

Newsflash – Amendment in GST Rates

31 August 2017

The following are the key highlights of amendments:

Extension of Due Date for furnishing GSTR 3B return for July 2017 - RSM India newsflash

22 August 2017

The Government of India has extended the due date of furnishing GSTR 3B return for the month of July 2017 from 20 August 2017 to 25 August 2017. In said regards please find attached our newsflash. We trust you will find the same useful.

Clarification regarding availability of Transitional credit in relation to GST - RSM India Newsflash

22 August 2017

The Government of India has issued clarification regarding availability of Transitional credit in relation to GST. We are pleased to release our newsflash on the captioned subject and trust you will find the same useful.

Newsflash- Extension in Due date of GST returns for the period July and August 2017

11 August 2017

We are pleased to release our newsflash on the captioned subject. The Government has notified the extended due date for furnishing the Goods and Services Tax (GST) returns for July 2017 and August 2017 under GST. We trust you will find the same useful.

Amendment to Central GST Rules, 2017 - RSM India Newsflash

11 August 2017

The Government has amended certain Central GST Rules, 2017 by Notification no.17/2017- Central Tax dated 27 July 2017, The Key Highlights of the said notification are:

GST - THE JOURNEY BEGINS - Updated 7 July 2017

10 August 2017

We are delighted to enclose our latest GST publication viz. ‘GST – The Journey Begins (Updated 7 July 2017)’. This publication comprises of all the enacted & updated GST regulations up to 7 July 2017 and analysis of significant regulations.

Clarifications on computation of book profit for the purpose of levy of MAT under section 115JB of the Income-tax Act for Ind AS compliant companies

28 July 2017

The Finance Act, 2017 introduced tax provisions under Minimum Alternate Tax (MAT) provisions for Indian Accounting Standards (Ind AS) compliant companies. The provisions resulted in most Ind AS adjustments, including transition impact, being taxed under MAT provisions.

No TDS on GST component comprised in the payments made to residents - RSM India Newsflash

21 July 2017

We are pleased to release our newsflash on the captioned subject.

Newsflash - The OECD's Multilateral Instrument and its Impact on Indian Tax Treaties

20 July 2017

In October 2015, the Organization for Economic Co-operation and Development (‘OECD’) had issued the final Base Erosion and Profit Shifting (BEPS) reports and released multilateral instrument (MLI) in November 2016 to swiftly implement treaty measures on hybrid mismatch arrangements, treaty abuse, permanent establishment, and mutual agreement procedures by modifyin

Newsflash: Income Tax - Secondary Adjustments in Transfer Pricing

20 July 2017

Recently, the Central Board of Direct Taxes (CBDT) has issued rules to support the implementation of Secondary Adjustments in Transfer Pricing by prescribing the time limit for repatriation and method for computing interest on excess money.

Newsflash: Supreme Court Judgement - Section 40(a) (ia) of the IT Act covers not only those cases where the amount is payable but also when it is paid for disallowance purposes

20 July 2017

Section 40(a)(ia) of the Income-tax Act, 1961 provides that any specified payment (interest, commission, etc.) to a resident from which tax is deductible at source will not be allowable as a deduction if (a) the tax had not been deducted or (b) after deduction, had not been paid in time as provided therein.

Newsflash: Final Rules notified for valuation of unquoted equity share for the purposes of Section 56 and Section 50CA of the IT Act

19 July 2017

Recently, the Finance Act, 2017 inserted Section 56(2) (x) so as to widen the scope of taxability of receipt of sum of money or property without/inadequate consideration.

Newsflash - Export Procedure and Sealing of Containerized Cargo

6 July 2017

Vide its Circular no. 26 / 2017 - Customs, dated 1 July 2017, Government of India has prescribed the procedure for export and for sealing of containerized cargo,

The Dawn of GST Era – Updated 3 June 2017

29 June 2017

On 3 June 2017, the GST Council fixed the GST rates of certain items, including the Rates for Rough Diamonds, Gold, Gems and Jewellery. Also the GST Rules in respect of the following were announced:

Newsflash Publication - Income Shift in the base year from 1981 to 2001 with Revised Cost Inflation Index for computing Capital Gain

14 June 2017

https://www.rsm.global/india/sites/default/files/media/newsflash_-_shift...

Income Tax - Revised Safe Harbour Rules Issued

14 June 2017

https://www.rsm.global/india/sites/default/files/media/newsflash_-_incom...

Newsflash - Certain Significant Amendments Made to the Finance Bill, 2017

28 March 2017

The object of the Finance Bill (‘the Bill’), as you know, is to give effect to the financial proposals of the Central Government for the financial year 2017-18. The Bill was introduced in the Lok Sabha on 1 February 2017 and it was passed by the Lok Sabha recently on 22 March 2017 .

Newsflash - CBDT issues clarifications on revised ICDS - Circular no. 10/2017 dated 24 March 2017

28 March 2017

Background:

Newsflash: GST - Latest Developments

28 March 2017

Union cabinet has approved four crucial GST bills. 1. The Central Goods and Services Tax Bill 2017 (The CGST Bill) 2. The Integrated Goods and Services Tax Bill 2017 (The IGST Bill) 3. The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill)

Newsflash - Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana 2016

20 January 2017

The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 (Scheme) provides an opportunity to persons having undisclosed income in the form of cash or deposit in an account maintained with a specified entity to declare such income and pay tax, surcharge and penalty totaling in all to 49.9 per cent.

Newsflash - Key changes in the new protocol to amend India-Singapore tax treaty

5 January 2017

With the revision to the India-Mauritius tax treaty to phase out capital gains tax exemption, it was only a matter of time before the Government turned its attention to the India- Singapore tax treaty. On 30th December 2016, India and Singapore signed a Third Protocol to amend their bilateral tax treaty. Two changes which stand out are:

Newsflash - Clarifications on Direct Tax Dispute Resolution Scheme, 2016

29 December 2016

The Direct Tax Dispute Resolution Scheme, 2016, (‘Scheme’) which provides an opportunity for dispute settlement, can be availed up to 31st December, 2016. The Central Board of Direct Taxes (CBDT) issued its first set of clarification with regards to the Scheme on 12 September 2016 ( vide Circular no. 33 of 2016)

Newsflash - Clarifications on Indirect Transfer of Capital Asset under the Income-tax Act, 1961

29 December 2016

Under Section 9 of the Income-tax Act, 1961 (the IT Act), income arising from indirect transfer of assets situated in India is deemed to accrue or arise in India.

Newsflash - Income Tax - SC decision - Stage of deduction of sec10A would be while computing the gross total income of the eligible undertaking

23 December 2016

The Supreme Court (SC) has finally cleared the air about the true effect of the provisions of section 10A of the Income Tax Act, 1961. Earlier there was a lot of confusion as to whether amended section 10A is a deduction section or an exemption section.

Newsflash - Key Aspects of Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana 2016

23 December 2016

Post demonetization of the currency on 8 November 2016, a scheme namely, ‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (‘the Scheme) was introduced by the Taxation Laws (Second Amendment) Act, 2016 which came into force on 15 December, 2016.

Newsflash On The New Taxation Window To Declare Undisclosed Income In The Form of Cash Deposits

6 December 2016

Newsflash - Service tax payable by foreign entities on cross-border B2C OIDAR services

6 December 2016

The Central Government has amended Service Tax regulations to make foreign entities without presence in India providing B2C OIDAR services in India liable to Service Tax and comply with Service Tax regulations. This appears to be a first time that Central Government has made a non-resident person as a person liable to pay Service Tax.

Newsflash Income Tax Rate of depreciation brought down to 40 percent for all assessees

23 November 2016

Recently, the CBDT has made changes in the Income Tax Rules to restrict the rate of depreciation maximum up to 40% for block of assets which are currently eligible for depreciation at a higher rate ( 50%, 60%, 80%, 100%).

Newsflash - Revised ICDS notified-Applicable from AY 2017-18 onwards

12 October 2016

The Central Government had notified 10 Income Computation and Disclosure Standards (‘ICDS”) to be applicable to all assessees following mercantile system of accounting for computing business income and income from other sources from AY 2016-17 and onwards.

Newsflash - Electronic filing of MVAT Return in new automation processes and changes in procedures

30 August 2016

On 25th February 2016 the Maharashtra Sales Tax Department (hereinafter referred to as "MSTD") had issued Trade Circular No 7 T of 2016 which explains the new automation process of filing of returns for the periods from April 2016.

Newsflash - Stand-by arrangement for issuance of e-CST declarations in State of Maharashtra

30 August 2016

The Maharashtra Sales Tax Department (MSTD) is in the process of implementing SAP based New Automation System. Retums for periods after 1 April 2016, under Maharashtra Value Added Tax Act (MVAT) and Central Sales Tax Act (CST) will be started in the new automation system in due course.

Newsflash - Fourth set of clarifications on the Income Declaration Scheme 2016

22 August 2016

The Income Declaration Scheme, 2016 came into effect on 1st June, 2016. So far the Central Board of Direct Taxes has issued three sets of FAQs vide Circular Nos. 17, 24, 25 & 27 of 2016. In order to address further queries received from the public relating to the Scheme, CBDT has further issued fourth set of clarifications on 18 August 2016.

Newsflash – FAQs on Goods and Services Tax

9 August 2016

The newsflash summarises certain frequently asked questions (FAQs) on the Goods and Services Tax (GST) law.

White Paper "The Direct Tax Dispute Resolution Scheme, 2016- An opportunity to resolve pending litigation"

8 August 2016

Rising tax dispute has been a matter of serious concern for taxpayers. The Direct Tax Dispute Resolution Scheme (‘the Scheme’) which has been introduced as a part of the Finance Act, 2016 provides an opportunity to taxpayers to settle their pending tax disputes at the level of the First Appellate Authority i.e.

Transfer Pricing Regulations in India – In harmony with the world

21 July 2016

The Indian economy is estimated to have grown at 7.6% in Financial Year 2015-16 and is expected to grow at 7% to 7.75% in FY 2016-17, making it the fastest growing major economy in the world.

Newsflash - Income Tax - ICDS deferred by one year, applicable from FY 2016-17 (i.e. AY 2017-18)

7 July 2016

We are pleased to share with you the newsflash on the captioned subject.

NF-CBDT Notifies Rules regarding "Indirect Transfer" Provisions-Fair Market Value & Reporting Requirement for Indian concern

6 July 2016

Presently, any capital gains arising to a non-resident on Indirect transfer of shares is deemed to accrue or arise in India on account of ‘retrospective amendment’ carried out through Finance Act, 2012.

Newsflash: Third set of clarifications on the Income Declaration Scheme, 2016

5 July 2016

The CBDT has since received further queries from stakeholders seeking clarifications about various provisions of the Income Declaration Scheme. The issues raised have been examined and the third set of 11 FAQs have been issued on 30 June 2016 vide Circular No.25 of 2016.

Newsflash: CBDT notifies final Foreign Tax Credit Rules on 27 June 2016

5 July 2016

Recently, the CBDT vide its Notification No. 54 of 2016 dated 27.06.2016 notified final foreign tax credit rules by introducing new Income Tax Rule 128 and new Form 67. In this newsflash, we have provided an overview of the final Foreign Tax Credit rules for your ready reference and perusal.

NF:Relief from higher withholding tax under section 206AA to a non-resident-new tax rule prescribes alternative documents to PAN

5 July 2016

Recently, the Central Board of Direct Taxes (CBDT) vide its Notification dated 24 June 2016 introduced a new rule 37BC to the Income Tax Rules, 1962 requiring a non-resident to furnish alternative documents to PAN so that the higher withholding tax under section 206AA shall not be applicable.

Newsflash - Second set of clarifications on the Income Declaration Scheme 2016 - CBDT Circular No. 24 of 2016

5 July 2016

The Income Declaration Scheme, 2016 (the Scheme’) incorporated as Chapter IX of the Finance Act, 2016 provides an opportunity to persons who have not paid full taxes in the past to come forward and declare the undisclosed income and pay tax, surcharge and penalty totaling in all 45% of such undisclosed income declared.

Newsflash – Indirect Taxes Exemptions - Krishi Kalyan Cess and ST exemption to Ocean Freight Services

27 June 2016

CBEC vide Notification No. 35/2016- Service Tax dated 23 June 2016 has granted exemption from levy of KKC on the invoices which were issued before 1 June 2016, subject to condition that the provision of service has been completed before the 1 June 2016.

Newsflash - Model GST Law in India - Key Highlights

27 June 2016

The indirect taxes comprising of additional countervailing customs duty, excise duty, service tax, state level VAT laws and CST which are proposed to be subsumed within the GST account for 15% to 25% of the turnover for most businesses.

White Paper - Disallowance us 14A - Expenditure in respect of Exempt Income - Recent Amendment to Rule 8D - June 2016

13 June 2016

Recently, the Central Board of Direct Taxes (CBDT) vide official gazette dated 2 June 2016 notified the amendment made to Rule 8D of the Income Tax Rules 1962 (IT Rules). One of the most litigative issues in direct taxation faced by business entities pertains to disallowances made under section14A of the Income Tax Act 1961 (IT Act) read with

Newsflash - Newsflash Draft Rules for Determination of Fair Market Value and Reporting Requirement - Indirect Transfer of Shares

30 May 2016

Post the retrospective amendment introduced by the Finance Act, 2012, India taxes the capital gains arising to a non-resident on transfer of shares of a foreign company if such shares derives its value substantially from the assets located in India ( i.e. the fair market value (FMV) of assets located in India exceeds Rs.

Newsflash - India and Mauritius sign protocol amending the tax treaty

11 May 2016

The Protocol for amendment of the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains between India and Mauritius was signed by both countries today at Port Louis, Mauritius. The key features of the Protocol are summarized in this newsflash.

Newsflash - Certain significant amendments made to the Finance Bill, 2016

11 May 2016

The Finance Bill, 2016 was introduced in the Lok Sabha on 29 February 2016 and it was passed by the Lok Sabha recently on 5th May 2016. We are pleased to release our newsflash which covers some of the significant amendments made during the passage of the Finance Bill in the Lok Sabha

Newsflash - Overview of the Draft Foreign Credit Rules released by CBDT

22 April 2016

For companies and other business entities having cross-border transactions, wherein they are eligible to claim credit of foreign tax against their taxable income in India, there did not exist a mechanism for availment of such credit.

Implications on CSR spending of the proposed amendment to the definition of Foreign Source under the FCRA Regulation

12 April 2016

One of the major proposals in the Finance Bill 2016 pertain to amendment to be brought in the Foreign Contribution Regulations Act, 2010 (‘FCRA’) by amending the definition of ‘foreign source.’ Pursuant to the proposed change, which if legislated would facilitate smoother movement of funds by the Indian companies (which are foreign owned), which are required to man

THE NEW AXIS OF FINANCIAL REPORTING - IND AS AND ICDS

4 April 2016

The publication 'The New Axis of Financial Reporting - Ind AS and ICDS' is prepared by RSM Astute Consulting Pvt. Ltd. (the Indian member of RSM) to provide readers a broad understanding of applicability of Ind AS and Income Computation and Disclosure Standards (ICDS) and some key differences with IFRS and Indian Standards.

Newsflash - New ITR forms notified for A.Y. 2016-17 - Schedule ICDS inserted

4 April 2016

Recently, the CBDT has notified new ITR forms Forms Sahaj (ITR-1), ITR-2, ITR-2A, ITR-3, Sugam (ITR-4S), ITR-4, ITR-5, ITR-6, ITR-7 for AY 2016-17 vide Notification no.24/2016 dated 30 March 2016.

Newsflash – Karnataka State Budget 2016-17

29 March 2016

Karnataka Value Added Tax KVAT, 18 March 2016 Entertainment Tax Click here to download

Newsflash – Central Excise Duty on Articles of Jewellery - Certain key aspects of the Finance Bill, 2016

28 March 2016

Through its Finance Budget, 2016, the Government of India has re-introduced Excise Duty on articles of jewellery with effect from 1 March 2016. This newsflash attempts to summarise some of the significant implications, on account of the said levy on the manufacture and sale of Jewellery.

Newsflash-Maharashtra State Budget 2016-17 - Key Highlights

23 March 2016

On 18 March 2016 Maharashtra Finance Minister has presented the State budget for the year 2016-17. The changes effected in various regulations shall be effective from a date to be notified unless otherwise specified . This newsflash brings to you certain key aspects of the Maharashtra State Budget 2016-17.

Newsflash – State VAT Updates

10 March 2016

Various States have issued VAT notifications and during the period February and March 2016. This newsflash summarises certain relevant circulars / notifications issued by various States in respect of their VAT laws, for the period 1 February 2016 till 8 March 2016.

Budget buzz on Dalal Street: Investors fear changes in STT, DDT, capital gains tax

17 February 2016

Views of Dr. Suresh Surana (Founder, RSM Astute Consulting) Government is committed to reducing litigation and has recently taken certain measures, such as setting up of tax simplification committee and acceptance of the judicial rulings in the case of Vodafone/Shell, etc.

Budget Expectations 2016 – Corporate Taxes

17 February 2016

Article by Dr. Suresh Surana (Founder, RSM Astute Consulting)

Non-filing of income tax return invites penalty

17 February 2016

In today’s busy life, many people may fail to file income tax returns. However, it is imperative that every person who has taxable income above the basic exemption files tax return in time.

This is how you can save tax this year

17 February 2016

With the end of financial year just around the corner, it is time to save certain amount of taxes by investing in prescribed instruments which are eligible for deductions. Chapter VI-A of the Income-tax Act primarily provides for deduction on certain payments and deduction on certain incomes.

Newsflash – Significant Highlights of Draft Recommendations of Income Tax Simplification Committee

28 January 2016

On 27 October, 2015, the Government of India had constituted a 10-member Committee under the Chairmanship of Justice R.V Easwar, former Judge of the Delhi High Court with a view to simplify the provisions of the Income Tax Act, 1961.

Taxpayers should not worry about the tighter PAN norms

20 January 2016

The income-tax department, recently, changed the regulations that require individuals to quote their permanent account number (PAN) for certain high value transactions. The rules, applicable from 1 January 2016, rationalises the earlier law and benefits taxpayers in many ways. This write-up includes Dr. Suresh Surana’s views on the same.

Why this POEM spooks corporate India

20 January 2016

The Finance Act, 2015, amended the provisions of the provisions of income tax act relating to determination of residence of a company. According to the amended provisions, a company would be said to be resident in India in any previous year, if it is an Indian company, or its Place of Effective Management (POEM) in that year is in India.

Taxability Of Income And Wealth Of Minor On Completing 18

18 January 2016

From the wealth tax perspective, it is important to note that the clubbing provisions shall still be applicable and the parent shall be subject to wealth tax in case where the asset has been transferred to a minor child without any consideration.

‘Myths and misunderstandings – Wrong perceptions regarding gift tax on residential properties.’

18 January 2016

There is a myth that there is no Gift Tax in India. Although there is no separate Gift Tax Act prevailing in India, the receiver of the gift may be subject to tax on the amount of the gift received under the Income Tax Act, 1961. However, there are certain exemptions by which the receiver shall be exempt from the applicable tax without any upper limit.

Why compiling tax-saving investment proofs is important’

18 January 2016

Employees are asked to submit the investment proofs towards the end of the financial year by the employers to verify and calculate the actual income tax liability. Submission of timely accurate details of investment to the employer makes sure that no heavy TDS is made in the later part of the financial year

Are you an HNI? here are 5 ways to save your tax

8 January 2016

In taxation parlance, pursuant to the recent Finance Act 2015 which has been legislated, 2 per cent additional surcharge has been proposed on individuals having a taxable income of Rs 1 crore (Rs 10 million) and above. Therefore, the individuals falling under this category of tax payers, can be perceived as the high net worth investors, or HNIs, class.

Newsflash - Draft Guiding Principles for Determination of 'Place of Effective Management' of a Company

30 December 2015

Draft guiding principles for determination of place of effective management of a company; place of effective management, foreign company will be treated as resident in India if its place of effective management; Location of Head Office; Use of modern technology in conducting meeting.

No Form 5CA and Form 15CB required in case of payment for import - CBDT Notification dated 16th December 2015

23 December 2015

Currently, a person making foreign remittance has to obtain a certificate from a Chartered Accountant in Form 15CB and electronically furnish an undertaking in a Form 15CA.

India - US Cross Border Business - A Guide to Indian Tax & Regulatory Aspects

23 November 2015

India is considered to be the fastest growing economy in the world, with an estimated growth rate of 7.3% for the current financial year 2015-16 inspite of uncertain global outlook.

Newsflash - Certain amendments in MVAT Act, 2002

17 November 2015

Maharashtra VAT Department has issued the Notification No VAT. 1515/ CR-81/Taxation-1 dated 5 November 2015 for increase in Interest Rate for delay of VAT payment with effect from 1 December 2015. Further, Maharashtra VAT Department has issued Trade Circular No.

Newsflash - Certain amendments in MVAT Act, 2002

Tax implications of buying property abroad

3 November 2015

Indians nowadays are increasingly buying properties overseas, particularly in London, New York, Singapore and Dubai. It is critical for them to study foreign exchange regulations and tax provisions of the relevant country as well as India before they make buying decisions.

Tax implications of buying property abroad

RSM in India empaneled as an IT Security Auditing Organisation with Cert-IN (Ministry of Telecom & IT, Gov. of India)

19 October 2015

RSM in India empaneled as an IT Security Auditing Organisation with Cert-IN (Ministry of Telecommunications and Information Technology, Government of India)

RSM in India empaneled as an IT Security Auditing Organisation with Cert-IN (Ministry of Telecom & IT, Gov. of India)

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