Tag: Taxation
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Budget 2013: Direct Tax Proposals – Introduction
The Finance Bill, 2013, as introduced in Parliament is available here. Among the amendments introduced, one which has caused some concern is an amendment which states that Tax Residency Certificates are necessary but not sufficient. Much of the concern appears to be undue. Under the general law, TRCs are not conclusive as to residence. The…
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Budget 2013: Taxation as a Solution to a Governance Problem
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Transfer Pricing on Issue of Equity Shares to Foreign Investors
The financial newspapers have covered this (here and here) and The Firm has an interesting discussion on this. The income tax authorities have sought to challenge the valuation on which certain Indian companies have issued shares to their foreign parents. While the shares were previously issued based on the erstwhile formulation adopted by the Controller…
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Legal advice privilege for tax advice given by non-lawyers
One of the striking changes in professional advice over the last two or more decades is the gradual erosion of the monopoly which members of the legal profession once had in giving legal advice. This, with the increasing importance of specialisation, has seen businessmen turn to members of other professions who are experts in particular…
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Computation of damages and the incidence of tax
The recent decision of the Court of Appeal in Capita Alternative Fund Services (Guernsey) Ltd v Drivers Jonas considered a peculiar set of circumstances in which the incidence of tax can be factored in when computing the damages suffered by a commercial party. The House of Lords had considered this question almost 60 years ago…
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Research Report: International Investment Law and the Vodafone Claim
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IICA’s Legal Compliance Manual
I just came across a Legal Compliance Manual put together by the Indian Institute of Corporate Affairs (IICA). It contains a list of compliances required to be carried out on the part of businesses that arise under various central and state legislation. Areas addressed include corporate law, environmental law, labour law, tax law and other general…
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Scheme of Arrangement & Tax Authorities: The Vodafone Essar Case
Lately, the income tax authorities have been actively objecting to schemes of arrangement initiated under sections 391 to 394 of the Companies Act, 1956 on the ground that the schemes are intended to avoid applicable taxes. Such objections are usually raised when the scheme is presented for sanction of the High Court. This scenario has…
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The AAR’s ruling in Schellenberg Wittmer: Partnerships and Tax Treaties
The entitlement of partnerships to the benefits of a double taxation avoidance agreement [“DTAA”] is a contentious issue. The main reason is asymmetry in the manner in which partnership income is taxed in the two Contracting States – India, for example, in certain circumstances taxes the income of a partnership in the partnership’s hands, but…
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Recent AAR Rulings on the ‘Mauritius route’
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