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India Tax Authority notifies threshold for applying Significant Economic Presence​ (SEP)

In order to address the problem of BEPS, the Organization for Economic Co-operation Development (OECD) framed various Action Plans. BEPS (Base Erosion and Profit Shifting) Action Plan 1 suggested measures to address the challenges posed by the Digital Economy. Taking…
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MFN clause in India-Netherlands Protocol: Details

Some of the Double Tax Avoidance Agreement (DTAA) contains an MFN clause (Most Favoured Nations clause). As per this clause, one country agrees to accord to another country a treatment that is no less favourable than the one which it…
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Taxability of payment done for Online Marketing & Advertising Services availed in the US​

For business today, online advertising on websites and search engines has become an integral marketing tool yet, the debate on the ability to tax these transactions are underway. A decision hasn’t been made as ads are taxable under ‘Royalty’ or…
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Payment from an Indian Company to an Offshore Company for Expatriate-Related Obligated Expenses Other Than Technical Service Fees: AAR

The Mumbai bench of the Authority for Advance Rulings ("AAR") decided that reimbursing a foreign firm for certain mandatory payments made to expatriate employees ("Personnel") on the Indian company's behalf would not be subject to the FTS tax because: The…
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“Non-US person” may end-up paying US Tax on Worldwide Income and providing US Tax Reporting

US Tax: New policies recently rendered state, non-US citizens turn into taxpayers depending on the time they have lived in the US. It is observed that this taxation is borne by non-US citizens. Those who visit families in the states…
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Everything You Need to Know About Bookkeeping in US​

What is bookkeeping? Booking keeping is the process that ensures that your business has systematic and accurate records of financial activity. As a business owner, your finances are a top priority and your process of bookkeeping too. Let us understand the…
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Tax Implications of Selling a Home in the US

Tax Implications (US): You may owe capital gains tax and net investment income tax (NIIT) if you’re selling your home, or you sold a house in 2021. See Tax Implications of selling a home in the US Gain Exclusion: You…
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Stock Options by US Corporation | Deferred Consideration | 409A ​

Stock Options by US Corporation: 409A applies to anyone subject to U.S. federal income taxation. Those who receives non-qualified deferred compensation, including:  US tax residents  Non-residents who earn US source compensation 409A involves the taxation of deferred compensation such as…
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The Benefits and Implication of Stock Sale vs Asset Sale in the US

Stock Sale is defined as the purchase of the owner’s shares of a corporation, while the purchase of individual liabilities and assets can be defined as an asset sale. Depicting a business sale as a stock sale or as an…
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Tax Consideration while Setting-Up LLC or C-Corp in the US​

Selecting an entity to start a business sometimes seems inconsequential but it is necessary to choose between one of two feasible options - LLC or C–Corp. It is a crucial decision, as it impacts everything - right from raising the…
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Checklist of Key Taxes Change for Individuals and Businesses in the US​

Before you start preparing your taxes, go through our checklist. We have compiled a list of changes to various taxes rules, for both individuals and businesses. Here is everything you need to know to before you file your taxes for…
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US Tax Implications on Cryptocurrency Transaction

Cryptocurrency is a network-based currency with the ability to be traded digitally without being tracked thanks to blockchain technology. Bitcoins are currently one of the most well-known types of cryptocurrencies. Dogecoin, Ethereum, Litecoin, IOTA, NEO, Monero, Ripple, Steam, and others…
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Bangalore ITAT allows Foreign Tax Credit to employee on Salary Income earned in Australia

ITAT allows Foreign Tax Credits to employees on Salary Income Background India signed the  DTAA with a number of countries in order to avoid double taxation on the aforementioned income. Section 90 of the Income-tax Act of 1961 (the Act),…
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Filing Tax Return In Canada – Non-Residents

Tax returns: The obligation for filing your taxes in Canada is primarily based upon an individual’s residency status. However, a non-tax resident's requirements are different from those of a resident. Below are some of the factors that are taken into consideration…
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All About Us Tax Free Spin–Off Transactions​

Us Tax-Free Spin-Off transaction: Corporate restructuring in the US is a common occurrence.  This involves selling the business of the company or simply reorganizing the management structure. Such restructuring decisions often lead to tax consequences. A spinoff, one of the…
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Compliances for Corporations in Delaware, USA​

1. Registered Agent A Registered Agent acts as the liaison between the company and the state in which it is incorporated. Registered Agents are responsible for receiving and forwarding service of process and correspondence such as franchise tax notices, from the…
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Raising funds through SAFE Note​

SAFE (or simple agreement for future equity) notes are documents those start-ups often use to raise seed capital. Essentially, a SAFE note acts as a legally binding promise to allow an investor to purchase a specified number of shares for an agreed-upon…
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Revocable Trust vs Irrevocable Trust in the US

A trust could be the best option for individuals to transfer assets either or during their lifetime or after their passing. A trust is a separate legal entity created to hold certain assets, managed by the trustee. Families tend to…
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Tax Consideration while Setting-Up LLC or C-Corp in the US

Selecting an entity to start a business sometimes seems inconsequential but it is necessary to choose between one of two feasible options - LLC or C–Corp. It is a crucial decision, as it impacts everything - right from raising the…
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The Benefits and Implication of Stock Sale vs Asset Sale in the US

Stock Sale is defined as the purchase of the owner's shares of a corporation, while the purchase of individual liabilities and assets can be defined as an asset sale. Depicting a business sale as a stock sale or as an…
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Stock Options by US Corporation | Deferred Consideration | 409A

409A applies to anyone subject to U.S. federal income taxation who receives non-qualified deferred compensation, including: US tax residents Non-residents who earn US source compensation 409A involves the taxation of deferred compensation such as stock options and stock appreciation rights.…