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INDIA TOP READS

Summary of important case laws, circular and notifications

November 2018

In this edition of our thought leadership publication, we have tracked the progress of some

Employee stock options: a form of share based payments

October 2018

There is no bigger challenge for an employer than conflicting interests between its employees..

Summary of important case laws, circular and notifications

October 2018

In this edition of our thought leadership publication, we have tracked the progress of some

Audit under GST Law

August 2018

Every registered person under goods and service tax (‘GST’) law, whose turnover during a financial year exceeds two crore rupees is required to get his accounts audited by a chartered accountant or a cost accountant. Such registered person is required to furnish, electronically, the annual return

Summary of important case laws, circular and notifications

August 2018

In this edition of our thought leadership publication, we have tracked the progress of some significant cases decided by the appellate forums across the country along

Summary of important case laws, circular and notifications

July 2018

In this edition of our thought leadership publication, we have tracked the progress of some significant cases decided by the appellate forums across the country along with important press releases issued by the Central Board of Direct Taxes.

Recommendations made during the 28th meeting of the GST council

July 2018

The GST Council approved the new return formats and associated changes in law. The return would be with two main tables - one for reporting outward supplies and one for availing input tax credit based on invoices uploaded by the supplier

Introduction to Valuation Standards

June 2018

The Indian corporate scenario is abuzz with activity surrounding valuation and registered valuers.

New Reporting for Indian entities with existing foreign investments

June 2018

The Reserve Bank of India (RBI) with the focus on integrating the foreign direct investment.

Summary of important case laws, circular and notifications

June 2018

In this edition of our thought leadership publication, we have tracked the progress of some significant cases decided by the appellate forums across the country along with important press releases issued by the Central Board of Direct Taxes.

The Inexperienced Investor

June 2018

Don’t you think that people these days are professionally qualified, but financially illiterate?

Insolvency & Bankruptcy code

May 2018

The implementation of the Goods and Service Tax and The Insolvency and Bankruptcy code (“IBC” or “the Code”) have been touted as ..

Summary of important case laws, circular and notifications

April 2018

In a case where there is no agreement or arrangement between the assessee and its associated enterprise ('AE') for incurring advertising, ..

Hide and seek between CESS and GST

April 2018

Education Cess ('EC') and Secondary and Higher Education Cess ('SHEC') payable on taxable services were abolished effective from June 1, 2015.

India Market Update for the quarter ended March 2018

March 2018

The quarter had over 229 private equity/venture capital investments rounding up to a value of USD 3.24 bn. Some notable deals include..

India Union Budget 2018

February 2018

In his late evening comment, Jaitley had this to say, ”Step by step, in every budget, I have been putting surplus money in the hands of the middle-class taxpayer.

India Market Update for the quarter ended December 2017

December 2017

The quarter had over 214 private equity/venture capital investments rounding up to a value of USD 5.3 bn. Some notable deals include:

The Conference committee has realeased the final draft of tax reforms on December 15, 2017

December 2017

On Friday, December 15, 2017, the House and Senate conferees jointly released a conference

Summary of important case laws, circular and notifications

December 2017

In a case where the assessee was rendering software development services

SSAE 18 - What does this change mean for service organisations?

October 2017

The ASB has replaced the audit standard known as SSAE 16 witha new standard (known as SSAE 18)...

Summary of important case laws, circular and notifications

October 2017

In this edition of our thought leadership publication, we have tracked the progress of some significant cases.

There is no competition …If you decide to create your own niche

October 2017

Professional service firms need to recognise that you don’t need to compete to grow; what you need is

India Market Update for quarter ended September 2017

September 2017

We are pleased to present to you the KNAV India Market Update for the quarter ended September 2017.

Summary of important case laws, circular and notifications

September 2017

International transactions meeting common portfolio must be aggregated for the purpose of benchmarking the

Summary of important case laws, circular and notifications

August 2017

Unless there is a high degree of comparability between the controlled transactions and uncontrolled transactions..

Summary of important case laws, circular and notifications

July 2017

No royalty addition could be made to the income of the assessee since the assessee purchased 80% of the products produced by its associated enterprise ..

India Market Update for the quarter ended June 2017

June 2017

This update includes an analysis of private equity/venture capital investments and the key M&A deals in the quarter ended June 30, 2017..

Summary of important case laws, circular and notifications

June 2017

In respect of loan given in foreign currency, LIBOR rate should be the basis for calculation of interest rate;

Size adjustment of multiples

June 2017

The guideline public company method (“GPCM”) under the market approach of valuation, uses multiples developed

KNAV's views on Revised Safe Harbour Rules

June 2017

The Central Board of Direct Taxes (‘CBDT’), vide notification number 46/2017, made amendments to the Safe Harbour Rules (‘SHRs’) issued in September 2013. The safe harbour programme issued in

Insights from M & A Survey 2016-17

June 2017

Key drivers for M&A

Bridging the GAP between Indian GAAP and Ind AS – emphasis on AS-10 and others

June 2017

With the notification of the Ministry of Corporate Affairs; the Companies (Accounting Standards) Amendment Rules, 2016, replaced 7 existing accounting standards

Valuation considerations post M&A

June 2017

Value v/s price

Summary of important case laws, circular and notifications

May 2017

Services rendered by the associated enterprise (‘AE’) cannot be considered as stewardship services if such services add economical/commercial value to enhance the

APA Annual Report - May 2017

May 2017

The Advance Pricing Agreement (‘APA’) programme has been operational in a number of countries and was launched in India in the year 2012. The primary goal of such a programme is to provide

Is valuation under FEMA restricted to DCF?

April 2017

Back in July 2014, FEMA updated the valuation guidelines and mandatorily required the use of internationally accepted

Summary of important case laws, circular and notifications

April 2017

Tested party taken by the assessee cannot be disregarded by the transfer pricing officer (‘TPO’) just because it is a foreign entity.

India Market Update for quarter ended March 2017

March 2017

This update includes an analysis of private equity/venture capital investments

Valuation of Synergies

March 2017

Synergy is the increase in value that is generated by combining two entities to create a new and more valuable entity. It is that magic ingredient allowing acquirers to pay billions of dollars in premiums

Summary of important case laws, circular and notifications

March 2017

When the sales between two entities exceeds 20% of total sales of the selling entity

Summary of important case laws, circular and notifications

February 2017

Transaction of buy-back of shares resulting from the investment in shares cannot be treated as a loan transaction and resultantly notional interest cannot be

Valuation of contingent consideration

February 2017

Contingent considerations are typically employed in transactions to bridge the valuation gap between buyer and seller arising

Summary of important case laws, circular and notifications

January 2017

When certain standard services are provided to the assessee, which may even require use of certain equipment, the consideration paid in respect of these services cannot fall under

Insights into real options

January 2017

Traditional approaches to capital budgeting, such as discounted cash-flows (DCF), cannot capture entirely the project value, for various

Budget Ananlysis - 2017

January 2017

The Economic Survey 2015-16 had predicted the Indian economy to register the GDP growth rate in the range of 7% to 7.75%. The economy was indeed treading along that path and clocked 7.2 % in the H1- FY 2016-17. Post the demonetisation.

GAAR Circular

January 2017

The provisions of Chapter X-A of the Income Tax Act, 1961 relating to General Anti-Avoidance Rule will come into force from 1st April 2017

Indian Economic Survey 2016-17

January 2017

The Economic Survey 2015-16 had predicted the Indian economy to register the GDP growth rate in the range of 7% to 7.75%. The economy was indeed treading along that path and clocked

Flash Alert - PoEM Guidelines

January 2017

Guiding principles for determination of Place of Effective Management (‘PoEM’) of a company

Due Diligence Checklist

January 2017

Due diligence is a process by which all the relevant information to making a decision on a particular transaction comes to light!

India Market Update for quarter ended December 2016

December 2016

This update includes an analysis of private equity/venture capital investments and the key M & A deals in the quarter ended December 31, 2016.

India M & A Expectation Survey

December 2016

In this report, KNAV has analyzed the state of global and Indian M&A markets from the perspective of the dealmakers, including insights on their overall objectives, outlook, challenges and other key factors influencing deal activityIndian M&A markets from the perspective of the dealmakers,

Summary of important case laws, circular and notifications

December 2016

On factoring in the notional interest calculated with respect to overdue receivables from the associated enterprises (‘AE’), addition cannot be made if the margin of assessee was more than average margin of comparable

Valuation Compendium 2016

December 2016

The utility of valuation is no longer confined to intricate aspects relating to mergers

Summary of important case laws, circular and notifications

November 2016

While using the internal comparable price (‘CUP’) method, one cannot take a transaction between another associated

Valuing intercorporate investments

November 2016

Multinational, multi-business companies often have complicated structures, with intercorporate investments (i.e., investments in other companies) across various

Summary of important case laws, circular and notifications

October 2016

In a case wherein one company has been held to be incomparable to another company in a particular judicial precedent, it does not mean that the aforesaid

Valuation for IRC § 382

September 2016

Acquisitions are motivated by various factors some of them being operating synergies with existing businesses, foray into new business segments, as a part of a turn-around strategy etc. However, many a time acquisitions are effected to capitalize on the

Summary of important case laws, circular and notifications

September 2016

Case Law 1: Copal Research India Pvt. Ltd. Vs. DCIT (ITA No. 7079/Del/2014) Companies engaged in knowledge processing outsourcing (‘KPO’) business couldn’t be taken as a comparable for

Valuation of tax attributes

September 2016

In any business valuation the subject matter being valued is the ‘business along with its operational net assets’.

India Market Update for quarter ended September 2016

September 2016

The quarter had over 326 private equity/venture capital investments rounding up to a value of US$ 2.43 bn. Some notable deals include

Transition to Ind AS

August 2016

Scheduled commercial banks, insurers/insurance companies and non-banking financial companies will be faced with unique challenges on adopting Ind AS in accordance with the phased road map laid down by the MCA and the RBI.

Summary of important case laws, circular and notifications

August 2016

The transfer pricing officer (‘TPO’) shall determine the arms’ length price (‘ALP’) based on the factum of the receipt of service and not on

Decoding GST - Dual GST framework, rates & impact on Indian economy

August 2016

The spread of value added tax (‘VAT’) and goods and services tax (‘GST’) has shown an increasing trend over the last two decades.

Discount for lack of marketability

August 2016

The concept of marketability centers on the ease with which the stockholder

Beta: An indispensable measure of security analysis

July 2016

This thought leadership paper provides insights on the concept of beta in valuation.

Summary of important case laws, circular and notifications

July 2016

Case law 1: M/s. Marico Ltd. Vs. Assistant commissioner of income tax (ITA No. 8713/Mum/2011)

Control premium

June 2016

The amount that a buyer pays to acquire control of a company typically exceeds the current market value

India Market Update for quarter ended June 2016

June 2016

Private equity/venture capital (‘PE/VC’) firms invested US$3.96 bn in the quarter ended June 2016, this update includes an analysis of PE/VC investments. We have also analyzed some key mergers & acquisitions (‘M&A’) transactions in the update.

Discount rate - WACC

May 2016

The income approach is one of the common ways of determining the value of a business by considering expected returns on an investment

Summary of important case laws, circular and notifications

May 2016

Case law 1: Shri Soundarrajan Parthasarathy Vs deputy commissioner of income tax (ITA Nos. 335 & 209/MDS/2016)

Summary of important case laws, circular and notifications

April 2016

Loan transactions – interest rate must be based on economic and market factors affecting the currency and data available for debt issuances of the currency in which loan has to be repaid rather than foreign currency or external data.

Summary of important case laws, circular and notifications

March 2016

Assessing Officer (‘AO’) barred from rejecting the bonafide quotation as a valid input and resorting to unscientific and unrecognized methods for ascertaining the Arm's Length Price (‘ALP’) of the services

Summary of important case laws, circular and notifications

February 2016

Sale of shares of an Indian company by a nonresident to a non-resident under group reorganization is not taxable in India

Summary of important case laws, circular and notifications

October 2015

First Blue Home Finance Ltd. Vs. DCIT (ITA No.3072/Del/2013)

Summary of important case laws, circular and notifications

September 2015

KPO services are not comparable to BPO services for identifying comparables for benchmarking an international transaction & determining the ALP.

Summary of important case laws, circular and notifications

July 2015

Lower authorities are bound to follow the order of the Hon'ble Tribunal. Blatant failure to do so could attract contempt of court proceedings.

India Market Update for quarter ended June 2015

July 2015

A total of US$ 1.65bn invested across 134 transactions in the quarter ended June 2015. Highest traction was in the technology/ internet sector with the Ecommerce sector leading with a total of 30 investments

Direct Tax circular update

July 2015

Taxation of dividend declared by foreign company is outside the ambit of Section 9 of the Income tax Act, 1961 ("the Act")

Summary of important case laws, circular and notifications

June 2015

Agency service provided by the foreign entity cannot be considered as consultancy or technical service and no TDS is to be deducted on the same.

Summary of important case laws, circular and notifications

May 2015

Loans given to wholly-owned foreign subsidiaries out of interestfree funds needs to be bench-marked at LIBOR as it falls within the ambit of 'International Transaction'.

Summary of important case laws, circular and notifications

April 2015

The appropriate ALP for guarantee commission in respect of corporate guarantee given on behalf of AE and rate of interest charged for loan advanced to the wholly owned subsidiary may be taken at 0.5% and LIBOR + 2% respectively;

Summary of important case laws, circular and notifications

March 2015

ITAT deletes the TP adjustment, supporting assessee's Internal TNMM carried out on the basis of functional similarity rather than product similarity as essential for applying TNMM.

KNAV Budget 2015 Analysis

March 2015

This budget has signalled the Government's clear intent to move forward with fast paced reforms to bring India to its earlier growth rate trajectory of 8-8.5%.

TAX DEPARTMENT DECIDES TO FOLLOW HIGH COURT'S RULING IN VODAFONE

February 2015

On October 10, 2014, the Bombay High Court had pronounced the ruling in case of Vodafone India Services Private Limited ("Vodafone") bringing a big relief to the UK-based mobile service

Summary of important case laws, circular and notifications

January 2015

Payments of incidental services for installation and commissioning of machines are not liable to be tax as fee for technical services

Summary of important case laws, circular and notifications

November 2014

If services relating to industrial, commercial or scientific experience do not involve imparting of know-how or transfer of any knowledge, experience or skill, then

Summary of important case laws, circular and notifications

October 2014

Consideration received for furnishing technical services, would not be treated as 'royalty' under DTAA of India & Austria. Consideration received for furnishing technical services , would not be taxabale in India

Summary of important case laws, circular and notifications

August 2014

Case Law-Reuters Transaction Services Limited Vs DDIT (ITA NO. 6947/MUM/2012 and ITA NO.7211/MUM

Summary of important case laws, circular and notifications

August 2014

Fee received for "foreign exchange deal matching system services" constitutes "royalty" under Article 12 of India-UK DTAA & s. 9(1)(vi) of the Income.

Summary of important case laws, circular and notifications

July 2014

Case law - Nortel Networks India International Inc vs. DDIT (Delhi - Trib.) Profits attributed on estimation basis to the PE constituted out of the transactions between associated enterprise

Budget 2014

July 2014

This budget has signalled the Government's clear intent to move forward with fast paced reforms to bring India to its earlier growth rate trajectory of 8-9%. The new Government has had just about 1 ½ months to put together a policy statement

Summary of important case laws, circular and notifications

June 2014

The assessee is engaged in the business of advertising, communication, publicity and merchandise, including undertaking market research, planning and providing consultancy services

Summary of important case laws, circular and notifications

April 2014

Case law - Bharti Airtel Limited Vs. Addl. Commissioner of Income Tax [I.T.A. No.: 5816/Del/2012]

Summary of important case laws, circular and notifications

April 2014

A transaction such as a corporate guarantee which has no bearing on profits, incomes, losses or assets of the enterprise is not an 'international transaction' u/s 92B(1) and not subject to transfer pricing.

Summary of important case laws, circular and notifications

March 2014

The international transactions entered into by the assessee with its Associated Enterprises ("AEs") were referred to the Transfer Pricing Officer ("TPO") for determination of arm's length price. The TPO did not agree on the adjustments for

India Transfer Pricing – Safe Harbour provisions

September 2013

Given the fact, that the total quantum of transfer pricing adjustments made during FY 2012-13 were INR 70,016 Crores,

Budget 2013 - Analysis by KNAV

February 2013

In a quest to give a major impetus to the investment climate in the country

US TOP READS

Employee stock options: A detailed insight

November 2018

In our November edition, we have provided insights on the various nuances related

Key highlights of proposed bonus depreciation regulations

October 2018

On August 8, 2018 the IRS released proposed regulations providing additional guidance on 

Economic nexus in sales tax Do you need to revisit your Sales tax nexus analysis?

August 2018

In wake of the Supreme court's Wayfair decision, the states have started issuing guidance on their approach to economic nexus rules.

Private Equity Valuation

August 2018

Private equity; as a category of alternative investment, has gained momentum in recent times.

South Dakota v/s Wayfair Inc: Landmark

June 2018

On June 21, 2018, the Supreme Court issued its decision in the case of South Dakota v. Wayfair, Inc. This decision is being looked upon as a landmark decision which will have a profound effect on taxation of out-ofstate especially online sales across the country.

Are you delinquent on your Texas taxes? Here is an opportunity to set things right

April 2018

The Texas Tax Amnesty Program will run from May 1, 2018

Let’s look at how states have responded to the new IRC Section 965

April 2018

The Tax Cuts and Jobs Act (TCJA) amended IRC Section 965 imposing an immediate one-time tax at a reduced rate on all U.S.

Canada Budget

March 2018

Canada Finance Minister Bill Morneau delivered Canada's 2018 federal budget on February 27, 2018.

Singapore Budget

March 2018

Finance Minister Heng Swee Keat presented this year's Budget in Parliament on Monday (Feb 19), where he unveiled Singapore's plans

Building a discount rate for early stage companies

February 2018

Estimating the value of early stage companies entails a comprehensive assessment of the risk profile associated with multiple factors especially those critical to the success of the company.

Revolutionary change in the content of auditor’s report for public companies in the United States of America

November 2017

The Public Company Accounting Oversight Board ('PCAOB' or 'the Board') made a revolutionary change in the content

Valuation of proprietary technology

November 2017

Technology-based intangible assets protect or support technology and may include, patented technology

New point of reference for SOC

November 2017

The Auditing Standards Board ('ASB') has revised several existing attestation standards

Valuation of tradename

September 2017

The thought that comes to one’s mind by the mention of

Impact of TD 9796 regulations issued by IRS

July 2017

The United States (US) Treasury Department (Treasury) and Internal Revenue Service

Bridging the GAP between Indian GAAP and Ind AS

July 2017

With the notification of the Ministry of Corporate Affairs; the Companies (Accounting Standards) Amendment Rules

Size adjustment of multiples

June 2017

The guideline public company method (“GPCM”) under the market approach

Tax due diligence considerations while acquiring S-Corporations

May 2017

For US corporations, there are special provisions under the tax laws

Is valuation under FEMA restricted to DCF?

April 2017

Back in July 2014, FEMA

Proposed v/s Final IRC Section 385 regulations

November 2016

On October 13, 2016, the US Treasury Department ('the Treasury') and the Internal Revenue Service ('the IRS')

Landmark Decision in Transfer Pricing - Medtronic, Inc v. Commissioner

October 2016

This thought leadership paper covers the key aspects of the decision in the case of Medtronic

Reporting requirements under US CBC regulations

August 2016

On June 29, 2016, internal revenue services ('IRS') and Treasury released the final countryby-country ('CbC') reporting

Reporting requirements for controlled foreign corporations

July 2016

Form 5471, which is the information return of U.S. persons in the context of specific foreign corporations

Favorable treatment under Tax for certain service contracts

June 2016

On July 30, 2015, the IRS issued Rev. Proc. 2015-39, which provides a safe harbor for accrual-basis

Proposed Debt-equity reclassification regulations released by IRS on April 4, 2016

May 2016

This thought leadership paper dwells on proposed earnings stripping regulations

State tax updates - 1st Quarter of 2016

April 2016

This thought leadership paper dwells on certain state tax related issues which need

Insights on lease accounting

February 2016

A new lease accounting standard seeks to increase transparency and comparability

State Transfer Pricing Initiatives

October 2015

Transfer pricing has become a major tax planning strategy employed by companies to shift profits to

Service revenue apportionment - Shift towards market based sourcing

September 2015

Although most states continue to adhere to the cost-of-performance sourcing rule when calculating the sales factor of a multistate

Considering Alternatives to Liquidation

August 2015

Shareholders might want to liquidate a corporation for several reasons including, among others, a division among the

Rules governing Internal-use software are proposed

July 2015

The IRS issued long-awaited proposed regulations on what type of internal-use software qualifies for the Sec. 41

Accounting for Income tax implications of the Tangible property regns.

June 2015

The IRS issued final regulations under Secs. 162 and 263 (T.D.9636)

Cost-Segregation studies and the impact of the Tangible Property regulations

May 2015

With the recovering economy and the tangible property regulations(T.D. 9689 and T.D. 9636, t)

New options for taxpayers who failed to file International information returns

April 2015

In June, the IRS made considerable modifications to the Offshore Voluntary Disclosure Program (OVDP), which for years

Sales & Use Tax - Taxation of the cloud still hazy

February 2015

While the coined term "cloud computing" no longer sounds foreign to consumers or businesses,

How certain fringe benefits are taxed

December 2014

An employee fringe benefit can take many forms. At its essence, a fringe benefit is a form of payment

Business Tax provisions retroactively extended by the Tax Increase Prevention Act of 2014

December 2014

The U.S. Senate sent a $42 billion package of tax incentives to President Obama for his signature, reviving dozens of lapsed breaks for 2014 and setting them to expire in less than two weeks. On December 16, 2014,

IRS to tighten compliance with voluntary program to classify workers as Employees

November 2014

The Tax Inspector General for Tax Administration (TIGTA) has issued a report on IRS's Voluntary Classification.

Foreign 'Blocker' Corporations with "No FATCA Documentation"

September 2014

It is extremely common for non U.S. persons to invest in U.S. stocks, bonds, and other U.S.-situs assets (such as U.S. real estate) through a wholly owned, foreign corporation.

New reporting requirements for Form 1042-S to reflect FATCA changes

August 2014

IRS has issued final instructions for Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding; IRS issued

IRS issues reference guide on FBAR

May 2014

IRS has issued its "Reference Guide on the Report of Foreign Bank and Financial Accounts (FBAR)

Excise tax credit/refund on off-Highway business use of fuel

February 2014

An excise tax is imposed on gasoline fuel at 18.4 cents per gallon, and the taxes collected are placed into a special fund designated for highway and road construction and maintenance.

Proposed Regs. clarify research expenditure eligibility under Sec. 174

January 2014

The IRS in September issued proposed regulations (REG-124148-05) clarifying the application of Sec. 174

Deduction for Bonus compensation expense: LAFA Memorandum

November 2013

The IRS, in its 'Legal Advice issued by Field Attorneys' (LAFA) memorandum number 20134301F

IRS final regulations governing Repairs and Capitalization - September 13, 2013

October 2013

On September 13, 2013, the IRS released the final "repair" regulations (T.D.9636) governing

Employment taxes - Additional Medicare taxes - effective from calendar year 2013

July 2013

Generally, an employer is required to withhold social security and Medicare taxes from employees' wages

367 (d) - Transfer of intangibles to foreign corporation - Proposed changes

May 2013

In general when a U.S. individual or corporation transfers an intangible asset to a foreign corporation, income is to be recognized by the U.S

Information Returns for NRA withholding taxes - forms 1042 and 1042-S

January 2013

Generally, a foreign person is subject to U.S. tax on its U.S. source income. Most types of U.S. source income received

Congress passed bill averts fiscal cliff tax consequences

January 2013

In the early morning hours of Jan. 1, 2013, the Senate, by a vote of 89-8, passed H.R.8, the "American Taxpayer Relief Act"

PRESS RELEASE

RESEARCH TOPICS

Industry Guide, March 2017

The inadequacy of sufficient and reliable industry data sources in India has encouraged us at KNAV to compile industry-wise data. Through our efforts, we aim to overcome this deficit of reliable data. Data has been sourced from Standard & Poor’s research company Capital IQ.

The KNAV Deal Watcher, India Market Update

The update includes an analysis of private equity/ venture capital investments and the key M&A deals in the quarter ended September 2018.