Doing Business in India
Transfer Pricing remains the focal point of all the Multinational Enterprises (MNEs) during the first quarter of the financial year 2016 as many countries are racing to implement the Organisation for Economic Cooperation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) recommendations by way of legislation changes in their taxation laws. The OECD is also working at a swift pace to provide implementation packages and tools and assist countries in implementing the Action Plans.
The latest issue of Tax Trends – SKP’s quarterly newsletter that aims to provide insights into key direct tax developments in India, covers developments from April to June 2016. The most striking development for this quarter was the amendment in the India-Mauritius Tax Treaty, through the Protocol which was signed on 10 May 2016. This protocol was aimed at putting an end to the misuse of the treaty through round-tripping of funds and tax avoidance. In this issue, we discuss this Protocol along with other recent developments.
The (Amended) 122nd Constitutional Amendment Bill (CAB) for Goods and Services Tax (GST) was unanimously re-adopted by the Lok Sabha (Lower House of Parliament) on 8 August, 2016. The Lok Sabha actively debated on all the amendments proposed by the Rajya Sabha (Upper House of Parliament) on CAB and unanimously adopted all the amendments.