Blogs

Significant Economic Presence​ (SEP)

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 a cue from this Action Plan, India has been a front runner in implementing measures …

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Taxability of payment done for Online Marketing & Advertising Services

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 from a ‘Permanent Establishment’ perspective (PE). Concepts like – ‘Equalisation Levy’ (EL) and ‘Significant Economic …

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REIMBURSEMENT FOR OBLIGATED EXPENSES NOT FTS

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 Indian corporation and its personnel had an employer-employee relationship. Payments made to reimburse obligated expenses. …

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US Tax

“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 stay for a few months each year. Visitors may have had to extend their stay …

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Everything You Need to Know About Bookkeeping

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 Basics of Bookkeeping: In many traditional businesses, bookkeeping involved recording day-to-day transactions physically in a …

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Stock Options by US Corporation_Deferred Consideration_409A

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 stock options and stock appreciation rights. 409A applies to the compensation that is earned in …

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