Cross-Border Transactions under Tax Laws & FEMA by G. Gokul Kishore, R. Subhashree – 3rd Edition 2023

Description

This book provides practical guidance based on judicial interpretation of the law and rules. It also provides an easy-to-understand commentary (with departmental clarifications) on cross-border transactions with respect to the following laws:

• Income Tax (including International Tax & Transfer Pricing)
• Goods & Services Tax (GST)
• Customs
• Foreign Exchange Management Act (FEMA)

This book will be helpful for practitioners, members of the bar & bench and industry, and assessing officers.

The Present Publication is the 3^rd Edition, amended by the Finance Act 2023 and updated till 1^st May 2023. This book is authored by Dr. Gokul Kishore & R. Subhashree, with the following noteworthy features:

• [Easy-to-Understand Practical Commentary] covering:
  • Income Tax (including International Tax & Transfer Pricing)
    • Implications of International Transactions
    • Adoption of Appropriate Transfer Pricing (TP)
    • Comprehending the Creation of Permanent Establishment (PE) and Double Taxation Avoidance Arrangements (DTAA)
    • Ensuring Compliance with Withholding Obligations when payment is made to non-resident
    • Issues relating to Royalty & Fees for Technical Services (FTS), Tax Residency and Foreign Tax Credit (FTC)
  • GST
    • Examination of Cross-Border Services by applying Place of Supply & Export of Service provisions under the Integrated Goods and Services Tax Act (IGST), besides analyzing benefits to exporters
  • Customs
    • Valuation of Imported Goods under Customs Valuation Rules, when transaction value as declared by importer is not accepted
    • Availing Customs Duty Exemptions
    • Duty Remission and Rewards under various Export Promotion Schemes as provided in Foreign Trade Policy 2023
  • FEMA
    • Compliance with Provisions of FEMA on Receipts and Payments for Export and Imports
• [Exhaustive Discussion on both Basic Concepts and Issues faced by the Industry] combined with essential commentary on statutory provisions and the jurisprudence.
• [Cross-references to other Chapters] wherever implications need to be understood

The structure of the book is as follows:

• [Chapter 1 | Customs Valuation] discusses Article VII of GATT, Customs Valuation Agreement, Section 14 of Customs Act, 1962, Customs Valuation Rules (for imported goods) and Export Valuation Rules with relevant judgments and orders. Pointers relating to transfer pricing issues have also been mentioned in this chapter
• [Chapter 2 | Transfer Pricing] analyzes international transactions, associated enterprises, comparables, methods of determining Arms Length Price, TP challenges in India as per the UN TP Manual and judicial rulings, creation of marketing intangibles and TP issues relating to AMP expenses. TP assessment, adjustment and appellate remedy have also been included. To provide a 360° perspective, secondary adjustment, Country by Country Reporting (CbCr), thin capitalization, Cost Contribution Arrangements, intra-group services and cost-sharing arrangements have been succinctly covered
• [Chapter 3 | Permanent Establishment & DTAAs] discusses taxing powers and sources of income. The concept of PE and types of PE have been explained through the relevant articles in various DTAAs, along with treatment by the Indian judiciary and ITAT. The attribution of profits to PE, which has significant practical implications, has also been discussed
• [Chapter 4 | Incomes other than Business Income, Withholding Obligations and Foreign Tax Credit] is broad-based and to the extent relevant to cross-border transactions; it provides a commentary laced with practical guidance on residency, the definition of interest, jurisdiction to tax, dividends paid or received, taxation of royalty, FTS, salary, capital gains, other income, withholding obligations, FTC, the requirement to file the return and the concept of the representative assessee
• [Chapter 5 | Import & Export under IGST Act] as applicable to import and export of goods, import of services and export of services, along with the provisions on the place of supply and refund mechanism, forms the fifth chapter
• [Chapter 6 | Customs Exemption and Export Promotion Schemes under FTP] Considering the relevance to cross-border trade, Customs Duty exemptions and export promotion schemes under Foreign Trade Policy 2023 (FTP) have been discussed in the sixth chapter.
• [Chapter 7 | Export and Import under FEMA & Regulations] Knowledge of obligations and provisions applicable to export and import under FEMA and regulations thereunder is integral to cross-border transactions. Therefore, a concise commentary on the same has been provided in Chapter 7
• [Chapter 8 | Dispute Resolution] Dispute resolution mechanisms under IGST Act and Customs Act, along with alternative dispute resolution under Income Tax Act, have been included. Chapter 8 also provides a broad overview of the statutory remedies available to exporters and importers