Direct Tax Amicus: April 2017

Taxes are mandatory and necessary. Opinion, however, has been divided on the issue as to whether taxes are avoidable.

Direct Tax Amicus: May 2017

In 2012 the majority view of a Special Bench of the Income Tax Appellate Tribunal had given a conclusion that disallowance under Section 40(a)(ia) can be made only to the amounts of expenditure which are payable as on the date 31st March of every year and it cannot be invoked to disallow expenditure which has been actually paid during the previous year, without deduction of TDS.

Direct Tax Amicus: March 2017

Finance Bill, 2017 proposed a number of changes like thin capitalization rules, secondary adjustments, changes in domestic transfer pricing provisions, taxation of dividend in excess of Rs. 10 lakhs in a year and so on.

Direct Tax Amicus: February 2017

Unless the party has performed or is willing to perform its obligations under the contract, and in the same sequence in which these are to be performed, it cannot be said that the provisions of Section 53A of the Transfer of Property Act will come into play on the facts of that case.

Direct Tax Amicus: January 2017

Income of non-resident shipping entities posed many challenges and to ease the same Section 44B was enacted.

Direct Tax Amicus: December 2016

The similarity between customs valuation and transfer pricing methodologies is that the objective of both is to establish whether or not the price at which the transaction has been entered into has been influenced by the relationship between the parties entering into the transaction.

Direct Tax Amicus: November 2016

A company is a juristic personality which not only comes into existence by operation of law but its cessation also takes place by operation of law.

Direct Tax Amicus: October 2016

Stock Appreciation Rights, also known as SARs are a novel way of rewarding the employees of an organisation by granting them the right to benefit from any appreciation in the value of the common stock (shares) of a corporation.

Direct Tax Amicus: September 2016

While the requirement of compliance with transfer pricing regulations by all the AEs involved in a transaction has been a subject matter of intense debate and practically, many foreign AEs do not comply with TP regulations in India, a recent ruling of a Special Bench of ITAT, Kolkata emphasises the requirement of compliance with Indian TP regulations by non-residents even where they do not receive any income because of their relationship with Indian AE.

Direct Tax Amicus: August 2016

Delhi High Court in a recent decision has held that the deduction under Section 80-IA(2A) for telecommunication companies is also available with respect to various ancillary income such as liquidated damages, interest, sale of directories and extra-ordinary items of income.