International Taxation Updates

Recent Updates

1. The Kingdom of the Netherlands and Georgia deposit instruments of acceptance or ratification for the Multilateral BEPS Convention

2. Global Forum on tax transparency reveals compliance ratings for further seven jurisdictions

3. Public consultation on the tax challenges of digitalisation

4. OECD and United Arab Emirates renew partnership to strengthen tax co-operation

5. Public comments received on the possible solutions to the tax challenges of digitalisation

6. Cameroon and Morocco launch new South-South co-operation programme under the Tax Inspectors Without Borders initiative

7. Morocco joins the Inclusive Framework on BEPS

8. India and Brunei sign Tax Information Exchange Agreement

9. CBDT finalizes bilateral agreement on exchange of CbC reports between India and USA

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] 102 417 (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] 103 165 (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] 102 438 (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] 102 441 (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] 102 378 (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] 102 439 (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] 102 422 (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] 103 189 (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] 103 232 (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] 103 388 (Bombay-HC)]