Input tax Credit

Input tax Credit   Input tax credit is the backbone of GST. It is the basic goal of GST which aims to ensure the avoidance of cascading effect of taxes.The whole scheme of  Input tax credit aims at providing seamless flow of credit throughout supply chain. Input tax credit has been defined first time in […]

Concept of PE Article 5

Concept of PE Article 5 & as expounded in Vishakhapatnam Port trust case & Formula One world championship Limited case   The two important points arises while studying a PE. That whether the non-resident is said to have a permanent establishment in India and if exists how much profit is attributable to it. Hence assessment […]

Establishing a foreign Branch office

The principals and procedure to be followed while establishing a branch office in India is governed by the Section 6(6) of Foreign Exchange Management Act ,1999 r/w Notification No FEMA 22/2000-RB dated May3, 2000 as amended from time to time.   The branch office as per notification no FEMA 22 (R) RB-2016 dated 31/03/2016 means […]

Taxability of Liaison offices in India

Section 9 of the Income Tax Act creates a deeming fiction by categorizing the incomes and situations in which the income shall be deemed to accrue arise in India. The provisions of these sections apply irrespective of the residential status of the person.   As per Section 9(1)(i) of the Act, LO would be deemed […]

Permanent Establishment

The two important points arise while studying a PE, that whether the non-resident is said to have a permanent establishment in India and if exists how much profit is attributable to it. Hence assessment of permanent establishment risk is very much imperative while embarking upon any cross-border expansion of the business and trade. While establishing […]

Establishing a Liaison Office In India

Before starting a business in India a foreign company may open a liaison office in India so that the preliminary steps to carry on the business can be done conveniently. Such liaison office would enable the company to form a base to estimate a market potential for the product, to market the product, to access […]