Direct Tax Amicus: June 2018

The Central Government, in September 2016, introduced Income Computation and Disclosure Standards (shortly, ‘ICDS’), under the Income tax law, that would govern computation of income of an assessee under the head ‘profits or gains from business or profession’ and ‘income from other sources’ necessitated a taxpayer to take a fresh look at certain issues which were accepted as settled.

Direct Tax Amicus: June 2018

Retention money - Is recognition as contract revenue sufficient to tax it early? By Bharathi Krishnaprasad The Central Government, in September 2016, introduced I

Direct Tax Amicus: May 2018

Finance Act, 2017 amended the Income-tax Act, 1961 (‘IT Act’) to provide that the annual value of building or land appurtenant thereto which is held by the assessee as stock-in trade will be deemed to be Nil for a period of one year from the end of the financial year in which the certificate of completion is obtained in respect of such property.

Direct Tax Amicus: March 2018

The issue of liability to deduct tax at source on reimbursement of expenditure can be traced to the difference in claim of the taxpayer and taxman.

Direct Tax Amicus: April 2018

Under OECD Model Tax Convention income from professional services was taxed in terms of Article 14 titled ‘Independent Personal Services’ However, Article 14 was deleted from the OECD MTC with effect from 29th April 2000 and the taxation of income from professional services was brought at par with taxation of business profits as provided in Article 7 of OECD MTC.

Direct Tax Amicus: February 2018

The liberal interpretation of the term ‘income’ and ‘business’ has not been wide enough to bring into the tax net certain receipts like compensation on termination of managing agency, profit from transfer of DEPB scrip, non-compete fee, etc.,

Direct Tax Amicus: January 2018

The income chargeable under the head ‘salaries’ is one of the heads of incomes which covers exhaustively, ‘payments’ made between persons in the capacity of employer and employee.

Direct Tax Amicus: December 2017

ITAT Delhi has held that ‘guarantee fee’ will not qualify as interest under the India-UK DTAA or the Income Tax Act, 1961, since it can relate only to payment by a person who has received some amount pursuant to a loan transaction.

Direct Tax Amicus: November 2017

RFinance Act 2006 inserted Explanation 1 to Section 40(a)(ii) of the Income Tax Act clarifying that any sum payable outside India and eligible for relief of tax under Section 90 or deduction from the income tax payable under section 91 is not allowable as a deduction under section 40 of the Income Tax Act.

Direct Tax Amicus: October 2017

Recently, the European Court of Justice (‘ECJ’), exercising arbitration procedure under Article 273 of the Treaty on the Functioning of the European Union (‘TFEU’) interpreted the term ‘debt-claims with participation in profit’ appearing in Article 11(2) of the Austro-German Double Tax Avoidance Agreement (‘DTAA’).