Facts of the Case The assessee is a GST-registered proprietary concern and a resident of India, engaged in the resale of virtual tokens. These tokens are purchased from Tangome INC (USA) and resold to individual buyers within the Tango App, where they hold value exclusively. 1. Taxability Under Section 9(1)(i) – Business Connection and SEP…
Introduction Seconding employees—whether expatriates working in India or Indian employees sent abroad—comes with significant tax and compliance challenges. Determining the economic employer, classifying salary reimbursements, and adhering to Section 195 of the Income-tax Act and applicable Double Taxation Avoidance Agreements (DTAAs) are critical steps in ensuring compliance. This blog explores the tax implications of secondment…
SaaS Model: How It Works Software as a Service (SaaS) is a cloud-based software distribution model that allows users to access applications over the internet without needing to install them on their local systems. SaaS providers host and manage software applications, offering them to customers on a subscription basis. Key Features of SaaS: With the…
Introduction The taxation of payments made to non-residents for royalty or fees for technical services (FTS) is a critical aspect of Indian tax law. These classifications determine TDS applicability, DTAA benefits, and compliance requirements. Section 9(1) of the Income-tax Act, 1961, defines royalty and FTS, forming the basis for determining taxability. This article breaks down…
Introduction TDS compliance is not a one-size-fits-all solution. Different industries, such as manufacturing, media, and technology, face unique challenges when dealing with foreign remittances. This blog dives into real-world case studies, uses figures to provide clarity, and offers practical steps to ensure smooth compliance while avoiding tax disputes. Key TDS Challenges by Industry 1. Manufacturing:…
Introduction Reimbursements are a routine part of business transactions, but their taxability often causes confusion. Are all reimbursements non-taxable? When does TDS apply to reimbursements? This blog tackles these myths and provides clear guidelines using case laws, scenarios with figures, and practical compliance strategies. Understanding Reimbursements and Taxability When Are Reimbursements Taxable? Reimbursements are taxable…
In today’s globalized economy, companies frequently engage non-resident consultants for services ranging from IT advisory to legal opinions. While such arrangements boost operational efficiency, they also trigger TDS liability under Indian tax law, particularly under Section 195 of the Income-tax Act, 1961. This blog simplifies the taxability of cross-border consulting payments, with practical case studies,…
UPDATED RETURN: The time limit for filing updated return is proposed to be 5 years from the end of FY as compared to the present time limit of 3 years. Accordingly proposed additional tax shall be as under: When the updated return is filed after end of 1st FY Time period Additional tax Less than…
The Finance Bill, 2025 introduces significant changes to Section 17 of the Income Tax Act, redefining the valuation and exemption criteria for perquisites. Below are the key amendments: The value of benefits or amenities provided free of cost or at a concessional rate to a Specified Employee is considered a perquisite. Who is a Specified…
Starting from April 1, 2025, the requirement under section 206C(1H) for sellers to collect tax at source (TCS) on the sale of specified goods exceeding Rs 50 lakhs will be discontinued. This change addresses concerns about the dual compliance burden, where sellers were required to ensure buyers deducted tax under section 194Q (TDS), leading to…