By Year
Search Publication

Taxsutra's TP Portal: Expert Corner

Benchmarking deemed international transactions – No straight jacket formula?
Transfer pricing continues to be a key tax concern for enterprises operating globally. Given the nature and quantum of litigation in India surrounding transfer pricing, it is natural that companies may opt to structure their arrangement in a manner that transfer pricing provisions do not get triggered. In this article, Maulik Doshi, Partner, Transfer Pricing, discusses the concept of deemed international transaction and provides illustrative examples of domestic transactions that are covered within the definition of deemed international transaction. He further explains how these transactions will need to be benchmarked.

Valuation in E-tailing

In continuation of our e-commerce series, in this article we look at India's unique challenges, recent deals in the e-tailing market, how valuations are done, and why they are high for loss-making companies.

GST: Impact on Telecommunications in India

From the conventional belief of being a communication service provider to providing multiple streams of value-added services, the telecommunications sector has become one of India’s core economic drivers. India is only second to China in terms of the number of connections and subscribers. The sector is also among the top five employment generators in India.

Given the mammoth volume of subscriber connections and the revenue generated from this sector, it is evident that the telecom industry is due for a serious overhaul with the evolving indirect tax scenario i.e. the introduction of Goods and Services Tax (GST). In this article, we aim to decipher the various aspects of the telecom sector that may change in the GST regime.

FDI Issues for E-commerce Companies in India

The e-commerce segment in India has grown at a CAGR of 37% from 2009 and is expected to grow ten-fold by 2030. Although there is a horde of goods and services being offered, there are a few that dominate the market, with online travel agencies enjoying a whopping 71% share in the sector, and e-retail in tow at a low 16%. The e-commerce segment is still at a nascent stage and has immense potential to grow. For this, like any industry, it needs capital and quality-enhancing competition. Foreign direct investment is one such source which brings in both.

While foreign investors eagerly await relaxations in B2C (business-to-consumer) e-commerce, they have made their mark in the online B2B (business-to-business) segment. In this article, we look at the existing FDI Policy for e-commerce, various structures through which foreign investors operate in the Indian e-commerce market, and the ongoing discussions on the FDI Policy for e-commerce.

Taxation of E-commerce in India: Direct Tax Issues

The e-commerce industry in India has witnessed exponential growth in terms of volumes and revenue and is expected to grow to over USD 15 billion by the end of 2015. Reports suggest India is on its way to becoming the world’s fastest growing e-commerce market. Despite the unprecedented growth in recent years, the tax framework governing the industry has not managed to keep pace with the rapidly changing business environment.

The advent of online marketplaces has enabled businesses to function in a virtual environment, which has rendered traditional taxation concepts redundant in some cases. In this article, we discuss some popular types of e-commerce businesses and the tax issues associated with them.

GST: Impact on Logistics in India

The logistics industry in India was estimated to be worth USD 130 billion in 2013 and has been growing rapidly. While the logistics sector could be among the primary bottlenecks in driving economic growth, it will also act as a catalyst to realising India’s ‘manufacturing dream’ over the next decade. In this article, we look at the various aspects of the logistics industry that may be affected by GST and how industry dynamics are likely to change once GST is implemented.

Taxation of E-commerce in India: Aggregator's Services under Service Tax

Budget 2015-16 made a change in service tax provisions to bring aggregators of services under the service tax net. This change will affect e-commerce businesses that own and manage software applications. However, it seems that only service providers who provide services to customers would be covered under its ambit; suppliers who sell goods to customers on web-based software applications may not be covered. However, businesses that connect service providers with prospective customers through web-based applications for services such as travel, hotels, cabs, etc. could be affected.

In this article, we look at the factors that will help businesses understand whether they would be regarded as aggregators under service tax and also help them align their structure. We also analyse the impact of the aggregator model on rent-a-cab services in two scenarios.

GST: Impact on the Manufacturing Sector in India

With initiatives such as ‘Make in India’, the Indian government realises that becoming a manufacturing hub will need several strategic reforms, one of which is the implementation of the Goods and Services Tax. While the new GST regime will usher in growth and opportunities for businesses in India, all major business dynamics will have to be thoroughly analysed to assess the impact of GST. In this article, we look at the possible impact of GST on the manufacturing sector in India.

Nexia Global Insight July 2015

Doing business in India gets easier under new government
During the last year, several policy initiatives have been introduced to make doing business in India easier and to facilitate foreign investment - and they are already having a visible impact.

The Hunt Report June 2015

Five tips to overcome obstacles while doing business in India
While entering India could be profitable, global businesses could face challenges specific to the local business environment, including the country’s diverse culture and demography. In this article, we discuss the five top tips to overcome typical obstacles faced by businesses to enter India.