Mukesh Butani

Financial Express: GLoBE Rules: Making a start

– Mukesh Butani On December 20, 2021, the OECD released the model Anti Global Base Erosion Rules. The Model Rules (also referred to as the “GloBE” Rules) are part of a two-pillar solution—Pillar 1 gives taxing rights to market jurisdictions and Pillar 2 establishes a global minimum corporate tax of 15%—to...

Business Today – India withdraws retro tax: What Next?

– Mukesh Butani On August 5, 2021, the government proposed the Taxation Laws (Amendment) Bill, 2021 to amend Section 9 of the Income Tax Act, 1961 (ITA). It was notified as an Act on August 13 after being passed by both houses of the Parliament and upon receiving Presidential assent. Section 9 provides for...

Kluwer International Tax Blog: Global Experts debate Landmark Transfer Pricing Cases in IFA Webinar

– Mukesh Butani & Seema Kejriwal On 20 May, 2021 the first Webinar of IFA’s online series “A conversation on International Tax Practice” was held. Chaired by Robert Danon (Chair IFA Permanent Scientific Committee), global experts shared their perspectives on India’s software royalty case and on landmark...

The Financial Express – Taxpayer rights: Seeking a new dawn for nation-builders

– Mukesh Butani & Kinshuk Jha As India enters its 75th year of Independence in a year fraught with trials, tribulations and resilience, there are encouraging signs on the horizon for taxpayers of the world’s largest democracy. On August 13, 2020, PM Narendra Modi announced the Taxpayers’ Charter...

Mint: We will eliminate double taxation, says OECD tax chief

-Mukesh Butani We need to design the rules on global minimum taxes for implementation, to finalize this political agreement by October, says Pascal Saint-Amans, Director of OECD’s Center for Tax Policy and Administration Global leaders are rewriting the tax rules to check the corporate practice of shifting...

The Financial Express: Retrospective Tax Law: Good riddance to a bad taxation approach

By Mukesh Butani & Tarun Jain Sovereignty’s manifestation, especially in contemporary civilisation, is shaped by pragmatism and due process. Bill of rights, constitutionalism, an independent judiciary, etc, within the domestic context, coupled with international law principles and extensive treaty framework,...

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The new Companies Act

The new Companies Act is modeled after modern laws given that the extant law outlived its importance in terms of size, relevance to India’s liberalization in past 20 years, and facilitates a framework to deal with modern...

It’s unclear what the announcement is likely to be, but, there is anticipation that clarity would emerge on the following contentious issues :

1. Current policy doesn’t allow franchise model for multi brand retailing; govt wants to allow only serious investors who are willing to commit USD 100 million at the miminum in ‘owning’ retail outlets, to join the bandwagon.

2. Investors are not allowed to acquire existing back-end infrastructure; requirement is to develop and invest in green field investment up to a minimum of 50 percent of total FDI

3. Multi brand entity cannot leverage on local sourcing done by existing manufacturing /Whole sale venture.

Separately, insofar as single brand retailing is concerned, besides sourcing condition restriction, there is no clarity on whether products sold under sub-brand of internationally known brand can be allowed or not.

The OECD report The report sets out a rather bold, ambitious plan on the entire gamut of cross border tax issues that would impact MNC’s and in my view, fundamentally alter the manner in which MNC’s have to comply with compliance requirement. The report would result in a fundamental overhaul as its seeks to introduce...