India Top Court: Auxiliary Functions Don’t Decide Tax Residency- Suraj Nangia

India’s top court passed a highly significant judgment on the taxability of outsourcing arrangements between Indian affiliates and their global counterparts by validating that a subsidiary performing back­end operations in India doesn’t constitute a permanent establishment. Suraj Nangia, Partner shares his views on aformentioned story for Bloomberg-BNA.

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Topic Routine functions won’t make MNCs liable to pay Indian tax

India’s apex direct taxes body has clarified that routine administrative functions carried out from a regional outfit of a multinational company, including handling of payroll, accounting and human resources, will not make it liable to tax on income earned outside the country. The move addresses a key concern of multinationals. There had been concerns that multinationals having regional offices in India where employees handle various administrative functions for multiple  countries…

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Restriction on Number of Layers of Subsidiaries under Companies Act, 2013

In order to check misuse of multiple layers of subsidiaries for diversion of funds and siphoning off funds, the Companies Act, 2013 (2013 Act): a) Prohibits prescribed holding companies from having layers of subsidiaries beyond prescribed numbers b) Requires that no investments can be made through more than two layers of investment companies. These provisions were sought to be omitted from the 2013 Act on the recommendation of the Companies…

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Start and Get Up – Startups

When we dream about an idea then it’s a time to start up and living that dream. The Government has launched its flagship program ‘Startup India” in January 2016 an initiative which intends to fulfil millions such dreams of young entrepreneurs. It aimed at promoting entrepreneurship by nurturing, mentoring and facilitating young entrepreneurs. Today people have multiple innovative ideas but same needs to complimented with right infrastructure, business plans and…

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Service Permanent Establishment-Changing Landscape – Suraj Nangia

Recently, the Tribunal, had made interesting observation in case of ABB-FZ [2017] 83 Taxmann 86 (Bengaluru – Trib) while interpreting provisions of service PE.  It held that for constituting a Service PE it is not the stay of employees for the specified period which is required to be met but continuous rendition of services by the foreign company. Suraj Nangia, Partner with inputs from Mansi Chopra, Manager, Nangia & Co LLP contributed…

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Multilateral Instrument- Changing Landscape of Cross Border Transactions

Way back in 90s, globalisation and opening-up of the economy changed the manner in which the businesses were conducted. With passage of time, businesses environment became more uncertain and thus dynamic. Multinational Corporations (‘MNCs’) devised strategies to efficiencies in their tax bill as well. However, loss of revenue led to the convergence of the governments worldwide to bring turnaround changes in the taxation laws. One such measure is the Multilateral…

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Filing Income Tax? See Mr. Suraj Nangia live on Facebook on Mint

Filing Income Tax? Join us LIVE as we discuss ‘Who needs to file income tax return, how to file it and common mistakes to avoid. Mr. Suraj Nangia, Partner, Nangia and Co. LLP is live on Facebook on Mint Filing Income Tax? Join us LIVE as we discuss 'Who needs to file income tax return, how to file it and common mistakes to avoid', with Suraj Nangia, Partner, Nangia and Co….

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