Global Transfer Pricing Updates - February 2020 – India

Almost a year has gone by since the enactment of the US Tax Reforms, through the Tax Cuts & Jobs Acts (TCJA). Even as Indian MNCs with US operations are absorbing the varied impact of the TCJA, uncertainty continues to prevail over several of the key provisions. In the midst of the chaotic changes in federal taxes, the US Supreme Court handed down the landmark Wayfair decision, which has led to a sea change in the nexus standards for sales & use tax from physical to economic nexus. With the US Supreme Court’s decision in Wayfair, inbound non-US companies and/or their US subsidiaries are now faced with potential collection and filing responsibilities in states with US customers. In this update session, KNAV will share insights on the guidance provided by the IRS on the TCJA as well as share key practical considerations of the impact on inbound activities of Indian MNCs, outbound CFCs of US multinationals and the far reaching consequences of the Wayfair decision.

In India, it has been over one year that new GST law was implemented, the biggest tax reform of the country. GST law is not merely a tax change but has resulted into business change impacting all the businesses in most of their functions. The implementation had not been smooth and had many roller coasters. The immediate implementations required, and future is going to bring in more changes in the process of implementation. In this session, KNAV will share insights on what’s likely to come-up in immediate future in GST – how it is going to impact businesses, operations, taxation matters and GST compliances.