International Taxation Updates

Recent Updates

1. The Kingdom of the Netherlands and Georgia deposit instruments of acceptance or ratification for the Multilateral BEPS Convention
[Ref:-http://www.oecd.org/tax/beps/the-kingdom-of-the-netherlands-and-georgia-deposit-instruments-of-acceptance-or-ratification-for-the-multilateral-beps-convention.htm]

2. Global Forum on tax transparency reveals compliance ratings for further seven jurisdictions
[Ref:-http://www.oecd.org/tax/global-forum-on-tax-transparency-reveals-compliance-ratings-for-further-seven-jurisdictions.htm]

3. Public consultation on the tax challenges of digitalisation
[Ref:-http://www.oecd.org/tax/beps/public-consultation-tax-challenges-of-digitalisation-13-14-march-2019.htm]

4. OECD and United Arab Emirates renew partnership to strengthen tax co-operation
[Ref:-http://www.oecd.org/tax/oecd-and-united-arab-emirates-renew-partnership-to-strengthen-tax-co-operation.htm]

5. Public comments received on the possible solutions to the tax challenges of digitalisation
[Ref:- http://www.oecd.org/tax/beps/public-comments-received-on-the-possible-solutions-to-the-tax-challenges-of-digitalisation.htm]

6. Cameroon and Morocco launch new South-South co-operation programme under the Tax Inspectors Without Borders initiative
[Ref:-http://www.oecd.org/tax/cameroon-and-morocco-launch-new-south-south-co-operation-programme-under-the-tax-inspectors-without-borders-initiative.htm]

7. Morocco joins the Inclusive Framework on BEPS
[Ref:-http://www.oecd.org/tax/beps/inclusive-framework-on-beps-composition.pdf]

8. India and Brunei sign Tax Information Exchange Agreement
[Ref:-https://ilt.taxmann.com/topstories/104010000000060477/india-and-brunei-sign-tax-information-exchange-agreement.aspx]

9. CBDT finalizes bilateral agreement on exchange of CbC reports between India and USA
[Ref:-https://ilt.taxmann.com/topstories/104010000000060877/cbdt-finalizes-bilateral-agreement-on-exchange-of-cbc-reports-between-india-and-usa.aspx

Recent Judicial Pronouncement

International Taxation

1. ITAT directs DRP to follow its latest judgment to decide taxability of supply of software on limited use basis
[Ref:-Cast Software Inc v. Dy. DIT [2019] 102 taxmann.com 417 (Delhi – Trib.)]

2. Services received by ONGC from Dutch Co. not FTS in absence of transmitting of any technical knowledge
[Ref:-ONGC v. ADIT [2019] 103 taxmann.com 165 (Delhi – Trib.)]

Transfer Pricing

1. TP method consistently followed by assessee can’t be changed by TPO if there is no change in circumstances
[Ref:- Asst. CIT v. Glenmark Pharmaceuticals Ltd. [2019] 102 taxmann.com 438 (Mumbai – Trib.)]

2. TPO can select comparables in respect of which results aren’t available in public domain
[Ref:- Philips Medical Systems (P.) Ltd. v. ITO [2019] 102 taxmann.com 441 (Kolkata – Trib.)

3. No TP adjustment in absence of agreement on incurring AMP expenses for promoting AE’s brand
[Ref:-L’Oreal India (P.) Ltd. v. ACIT [2019] 102 taxmann.com 378 (Mumbai – Trib.)]

4. Delay in realization of trading debt from AE may attract TP adjustments towards notional interest
[Ref:-MC Kinsey Knowledge Centre India (P.) Ltd. v. Pr. CIT [2019] 102 taxmann.com 439 (SC)]

5. TPO can apply TNMM to compute ALP even if comparable Co. isn’t manufacturing exactly the same product
[Ref:-Dy. CIT v. Epcos Ferrites Ltd. [2019] 102 taxmann.com 422 (Kolkata – Trib.)]

6. ITAT quashed draft assessment order as ‘ESPN’, being NR partnership firm, wasn’t an eligible assessee u/s 144C
[Ref:-Asst. CIT v. ESPN Star Sports Mauritius SNC et Companies [2019] 103 taxmann.com 189 (Delhi – Trib.)]

7. ITAT remanded matter to consider issue of AMP exp. in absence of any specific agreement to incur it
[Ref:-Canon India (P.) Ltd. v. Asst. CIT [2019] 103 taxmann.com 232 (Delhi – Trib.)]

8. TPO can’t determine ALP of specified domestic transactions not referred to him by AO: Bombay HC
[Ref:-Times Global Broadcasting Company Ltd. v. UOI [2019] 103 taxmann.com 388 (Bombay-HC)]