Direct Tax
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India nullifies retrospective application of Indirect Transfer (Vodafone) Tax
On 13 August 2021, the Taxation Laws (Amendment) Act 2021 (Act) received the Presidential assent, withdrawing retrospective effect of the much-controverted indirect transfer tax.
Tribunal holds BVI company re-domiciled in Mauritius entitled to India-Mauritius tax treaty benefits, also holds agency PE to be tax neutral
In a first ruling on the issue, the Income Tax Appellate Tribunal, Mumbai (Tribunal) in its recent judgment in the case of Asia Today Limited (Taxpayer) [ITA No. 4628/2006, ITA No.4629/2006, ITA 1877 of 2008 and CO No. 123/2008], ruled that re-domiciliation from British Virgin Islands to Mauritius cannot by itself result in denial of the benefits of the India-Mauritius tax treaty (Tax Treaty).
Reassessment notices issued by income-tax authorities face legal challenge
Several High Courts have stayed the reassessment proceedings in relation to reassessment notices issued by Income-Tax Authorities (IT Authorities) post 31 March 2021 for the financial year (FY) 2016-17 or prior FYs (Stay Orders). This is on account of the recent amendment to the law relating to reassessments under Income-Tax Act, 1961 (IT Act) which led to a paradigm shift in the number of FYs for which past tax assessments can be reopened.