Global Expansion Unveiled: Mastering the Art of Winding Up Overseas Ventures
In the era of globalization, Indian entrepreneurs have strategically ventured beyond borders, establishing entities overseas to leverage market opportunities, technological advancements, competitive advantages, and access to capital. However, the need to wind up these overseas entities, particularly wholly-owned subsidiaries, demands careful consideration of efficient options. This article explores the key reasons for winding up overseas […]
DDT Refund Under India-Germany DTAA: Navigating Tax Treaty Complexities
Navigating the intricacies of tax treaties is a formidable task, especially when it comes to dividend distribution and the associated tax implications. In the case at hand, a domestic company finds itself entangled in a dispute over the refund of Dividend Distribution Tax (DDT) concerning its Associated Enterprise (AE) in Germany. Background The controversy centers […]
Masters of Appeal: Transfer Pricing Dynamics
Navigating through the intricacies of transfer pricing issues, this analysis dissects three pivotal cases under Section 92C of the Income-tax Act, 1961, shedding light on adjustments related to sales, commissions, and discounts. Background Background: The assessee, a chemical manufacturing company, faced adjustments by the Transfer Pricing Officer (TPO) concerning sales to associated enterprises (AEs). Key […]
Section 122 of CGST act 2017
In the realm of Goods and Services Tax (GST), Section 122 of the CGST Act 2017 is a vital tool against non-compliance. It navigates offences from bogus invoicing to illegal supply, using fines and penalties as a nuanced deterrent. This introduction highlights the section’s pivotal role in maintaining GST integrity, ensuring adherence to regulations, and […]
Mastering Service Permanent (Service PE) Establishment
Understanding the implications of Permanent Establishment (PE) is vital for enterprises navigating international tax landscapes. This article delves into the nuances of Service PE in India, focusing on the determination of its existence and the associated tax implications. Significance of Permanent Establishment The cornerstone of international taxation lies in the presence or absence of a […]
Transfer Pricing Puzzle: Power Generation Sector
In the intricate landscape of transfer pricing under Sections 92C and 80-IA of the Income-tax Act, 1961, a pivotal case emerges as an enterprise engaged in power generation navigates the complexities of arm’s length pricing and its impact on deduction claims. Background Dive into the backdrop of the case, where the assessee company, active in […]
Decoding Section 151: Legal Quandaries in Notice Issuance
In the realm of income tax assessments, the nuances of Section 151 come under scrutiny, especially concerning the sanctioning authority for issuing notices. This scrutiny becomes evident in a recent case where the validity of a notice under Section 148 is contested. Let’s dissect the case and understand the implications. Case Overview The petitioner challenges […]
Decoding International Transactions: DIHPL-DIHBV Merger
In the realm of transfer pricing complexities, the case of amalgamation between the assessee and its holding company, DIHPL, raises intricate questions about the arm’s length price (ALP) computation, the applicability of transfer pricing provisions, and the nature of the transactions involved. Background The relevant assessment year, 2018-19, witnessed a merger between the assessee and […]
Global Tax Revolution: Unveiling OECD’s Pillar 1 & 2 Initiatives
In the dynamic landscape of international taxation, the Organisation for Economic Development and Cooperation (OECD) has taken a significant stride with its Pillar 1 and Pillar 2 initiatives. This article delves into the context, challenges, and comprehensive solutions proposed by the OECD to address the evolving complexities of global taxation. Understanding BEPS and Current Taxation […]
Section 234A Challenges: From High Court Setback to Supreme Court Review
In the labyrinth of tax law, a specific case involving Section 234A of the Income-tax Act, 1961, unfolds. The tale revolves around the assessment year 1996-97, where the protagonist, an assessee, grapples with the nuances of self-assessment tax and the subsequent disallowance of interest. We delve into the layers of legal proceedings that ensued, leading […]
