February 21, 2017

India – Guidelines Issued for Determining Place of Effective Management

February 21, 2017/ Ruchelman P.L.L.C.

In Circular No. 6/2017, dated January 24, 2017, the Central Board of Direct Taxes issued final guidelines regarding the factors that will be looked to under Indian income tax treaties when determining the place of effective management (“P.O.E.M.”) of a foreign company that is part of an Indian-based group. Almost as important as the substantive rules, the Circular establishes the procedure that must be followed before a tax officer may determine that the P.O.E.M. of a foreign company is in India. There are winners and there are losers in the Circular. Ashutosh Dixit, Parul Jain, and Kaushik Saranjame of BMR & Associates L.L.P. explain the new rules.

June 30, 2016

The End of the Negotiation: Protocol to India-Mauritius Tax Treaty Finally Released

June 30, 2016/ Ruchelman P.L.L.C.

After several years of negotiations, a new protocol to the Mauritius-India Income Tax Treaty has been agreed between the parties. In a nutshell, India benefits from amended provisions that are in line with other bilateral treaties, while Mauritius benefits from the adoption of grandfathering provisions regarding capital gains from the disposition of certain shares. Investors in both countries will benefit from greater certainty in taxing outcomes. Anurag Jain and Parul Jain of Attorneys BMR & Associates L.L.P., Gurgaon, address the highlights of the new provisions.