Deemed Gift and Deemed Capital Gains – Section 56(2)(x) and Section 50CA

Section 56(2)(x)

Finance Act 2017 has inserted a new clause (x) in section 56(2) w.e.f 1st April 2017 (i.e. applicable from AY 2018-19 related to FY 2017-18) which has considerably widened the scope of provisions taxing deemed gift as income. The applicability of corresponding old deemed gift clauses being section 56(2)(vii) and 56(2)(viia) has been restricted upto AY 2017-18 only. Continue reading

Posted in Direct Tax | Tagged , , , |

Income Computation and Disclosure Standards (ICDS)

The Central Board of Direct Taxes (“CBDT”) vide Notification no. 87 dated 29th September 2016 (“Notification”) has notified revised Income Computation and Disclosure Standards (“ICDS”) along with FAQs for clarifying certain issues vide Circular No. 10/2017 dated 23rd March 2017 (“Circular”). Continue reading

Posted in Direct Tax | Tagged , , |

Secondary Adjustment in Indian TP provisions: An international best practice or needs another look?

Keeping pace with the international best practices and its commitment towards OECD BEPS Initiative/ G20, India through Finance Act 2017 has brought in certain unconventional changes in the Transfer pricing (‘TP’) & International taxation regime. After EQL, CBCReporting – BEPS Action Plan 13, Lower tax on patents, now we see thin Capitalisation rules (BEPS AP 4) and Secondary Adjustments.

Let us discuss in detail, one of the most talked about amendment brought by Budget 2017 which is Secondary Adjustments. Continue reading

Posted in Transfer pricing | Tagged , , |

Gist of changes in the GST bills introduced in Lok Sabha on March 27, 2017

  • GST Law is not applicable to the State of Jammu & Kashmir.
  • Any supply of goods or services by employer to his employees without any consideration would not fall under GST ambit upto a limit of Rs. 50000/-
  • Sale of land and, sale of building will neither be treated as a supply of goods nor as a supply of services except the sale of under construction building.
  • Continue reading
Posted in GST | Tagged , |

Gearing up for Transition to GST

After being stuck in the corridors of power and countering around sixteen years of uncertainty, GST is finally going to see the light of the day.

GST, which is being pitched as the biggest tax reform since independence, will bring sweeping changes to a lot of business practices that the industry has comfortably settled into. Continue reading

Posted in GST | Tagged , , , |