In this 98^h edition, we bring you articles covering the recent supreme court judgment under the service tax law, wherein it was held that only provisions of updates to already sold subjected to VAT software is not again subjected to service tax.

The next article is part of the series of various facets of taxability of management support services. In this part, we have analysed the impact of arm’s length principle qua the management support services vis-à-vis low value adding intra group services.

The next article is on the recent release of change in ODI Regulations. The readers may recall that draft ODI regulations for public comments have released a year ago. Now, the final version of regulations has been released. We tried to compare the old vs. draft vs. new regulations and its implications. 

I hope that you will have good time reading this edition and please do share your feedback. I will also urge clients to mail us topics or issues on which you want us to deliberate in our future editions, so that we can contribute to the same.

Key Topics:

GST

• NO SERVICE TAX ONLY FOR REASON UPDATES ARE GIVEN - SC IN QUICK HEAL TECHNOLOGIES

DIRECT TAX

• MANAGEMENT SUPPORT SERVICES - ALP

FEMA

• ARTICLE ON NEW OVERSEAS INVESTMENT REGIME

A person in India may remit amount to outside India under various situations. In order to regulate such remittances, various regulations have been inserted under Foreign Exchange Management Act, 1999 (‘FEMA’) and Income Tax Act, 1961 (‘ITA’). In this article, the concept of remittance of amount to outside India by Individual has been discussed in detail.

An Individual may remit amount to outside India for various purposes viz. foreign trip, foreign education, medical facilities, investment in abroad, sale proceeds of investments in India, income earned in India etc.,

Read more: Remittance of Assets Regulations vs Liberalised Remittance Scheme - A Comparison under FEMA and...

Introduction:

It is observed from the  recent judgments of National Company Law Tribunals (for brevity ‘NCLT’/’Tribunal’) that there is an ambiguity as to the extent the objections raised by Income Tax Department should be taken into consideration while the Tribunals sanction a scheme under the provisions of Section 230 – 232 of Companies Act (for brevity ‘Companies Act’).

Section 230(5) of Companies Act for instance stipulates that a notice with all the documents in the prescribed format has to be sent to the Central Government, the income tax authorities, the Reserve Bank of India, the Securities and Exchange Board of India, the Registrar of Companies, the respective stock exchanges, the official liquidator, the competition commission, if necessary, and such other sector regulators or authorities which are likely to be affected by the compromise or arrangement and shall require the representations to be made on the proposed scheme.

Read more: GAAR vis-à-vis Compromises or Arrangements under Companies Act

Introduction:

In previous parts of Article (Part I[1] and Part II[2]), the concept of taxability of management support services under treaty and Income Tax Act (‘IT Act’) has been analysed in detail. Previous Parts of Article deal with taxability of such services in India in the hands of recipient.

However, the issue may not be said completely analyzed, without analyzing the deductibility of such expenses in the hands of the payer from the standpoint of transfer pricing.

Let us proceed to continue with the same example considered in the previous parts.

Read more: Management Support Services vis-à-vis Intra Group Services – An Analysis under Transfer Pricing -...