Finance

Income Tax Rules, 2018: Notification 33/2018

The Central Board of Direct Taxes (CBDT) on 20th July, 2018 released a notification stating the amendments/key changes in the Tax Audit Form 3CD. They shall come into force from the 20th day of August, 2018. CLICK HERE to Download the Notification.

International Taxation – Computation of ALP

Hello Readers, Hope you have read the previous parts. Click here to see the previous parts. Let’s proceed further…. Computation of ALP: I had already discussed CUP method of computation of ALP, so now let us discuss other parts: Method 2: Resale Price Method The resale price method (RPM) is a method which compares the gross margins (i.e. gross profit over sales) earned in transactions between related and unrelated parties for the determination of the ALP. The RPM requires high level of functional comparability and [...]

International Taxation – Int. Transactions, Profit Shifting, ALP Computation

Hello readers, hope you have read the previous parts in which we had covered the basics of international taxation laws and the concept of associated & deemed associated enterprises. Let’s proceed further….. International Transaction An international transaction means: a transaction between two or more associated enterprises, either or both of whom are nonresidents; and transaction in the nature of: sale/ purchase/ lease of tangible property; or sale/ purchase/ lease of intangible property; or provision of services; or lending/borrowing money; or any other [...]

International Taxation – Associated Enterprises

Hello Readers, Yesterday we have discussed about the basics of international taxation and covered basic aspects regarding the Arm Length’s Price principles and the reason behind the introduction of transfer pricing provisions in the Income Tax Act, 1961. Hope you have gone through it. Let’s proceed further and today we will cover other aspects of transfer pricing. **TP means Transfer Pricing **ALP means Arm Length Price Section 92: COMPUTATION OF INCOME FROM TRANSACTION WITH NON-RESIDENT Section 92 provides that any income arising from an “international transaction” [...]

THE PNB FRAUD

THE PNB FRAUD The hot topic of these days is PNB scam. Everyone is sharing on social platforms that PNB is involved in the fraud of Rs.  11,500 crores approx. but everyone is not aware about the way it has happened. So, let us discuss about the one of the biggest scams of the country, The PNB Fraud. **For the purpose of this article, Foreign Bank means “Foreign branch of an Indian Bank” Before proceeding further, we should know about the LoU i.e. [...]

Treatment of Reverse charge under GST

Hello Everyone coming with another article in this new year on Reverse Charge under GST, Reverse charge is a mechanism where recipient of goods and/ or services is liable to pay GST instead of supplier. Now What is Reverse Charge ? Under Normal Scenario, tax is paid by a supplier who makes supply of goods or services or both. However, under Reverse Charge Mechanism, liability to pay tax would not be on the supplier of goods or services or both but on the [...]

Base Erosion & Profit Shifting – A Global Challenge

Base Erosion & Profit Shifting – A Global Challenge Meaning: “Recently more and more enterprises organised abroad by American firms have arranged their corporate structures aided by artificial arrangements between parent and subsidiary regarding intercompany pricing, the transfer of patent licensing rights, the shifting of management fees, and similar practices in order to reduce sharply or eliminate completely their tax liabilities both at home and abroad.” So, Base erosion and profit shifting (BEPS) refers to tax avoidance strategies that exploit gaps and [...]

STOCK GYAN. (Part – 9)

Hello Readers, Till the previous parts, we had discussed completely about Long Term Debt Asset Class Instruments and started with Short Term Debt Asset class instruments under which we had discussed: Bonds Loans Bond Futures & Options on Bond Futures Interest Rate Swaps Interest Rate Caps & Floors, Interest Rate options, Exotic Derivatives Bills and Commercial Papers Deposits Also, refer the 1st part of the stock gyan series for having better understanding of the sequence and types, sub types etc. Let’s come to the [...]

STOCK GYAN. (Part – 8, Deposits)

Hello Readers, Till the previous parts, we had discussed completely about Long Term Debt Asset Class Instruments and started with Short Term Debt Asset class instruments under which we had discussed: Bonds Loans Bond Futures & Options on Bond Futures Interest Rate Swaps Interest Rate Caps & Floors, Interest Rate options, Exotic Derivatives Bills and Commercial Papers Also, refer the 1st part of the stock gyan series for having better understanding of the sequence and types, sub types etc. Let’s come to [...]

STOCK GYAN. (Part – 7, Bills & CP)

Hello Readers, Till the previous parts, we were discussing Long Term Debt Asset Class Instruments under which we had discussed: Bonds Loans Bond Futures & Options on Bond Futures Interest Rate Swaps Interest Rate Caps & Floors, Interest Rate options, Exotic Derivatives Now we are proceeding towards Short term debt asset class instruments under which we will start with its 1st type i.e. Securities. Also, refer the 1st part of the stock gyan series for having better understanding of the sequence and [...]

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