Navigating Global Tax Complexity: Key Insights from CNK’s October 2024 International Tax & Transfer Pricing Update
Staying ahead in the ever-evolving landscape of international taxation and transfer pricing is crucial for multinational businesses, investors, and tax professionals. The October 2024 edition of CNK & Associates LLP’s Quarterly Insights offers a timely and in-depth review of recent judicial decisions and regulatory interpretations impacting cross-border taxation in India. This report is especially relevant for entities with operations or investments spanning jurisdictions like the UAE, USA, and Mauritius.
Key highlights include:
- The Delhi High Court’s landmark ruling on profit attribution to Permanent Establishments (PEs), even when global losses exist—a significant shift for foreign enterprises operating in India.
- Clarification on the eligibility of U.S. LLCs for India–USA tax treaty benefits, despite their fiscally transparent status.
- A pivotal decision affirming Mauritius-based entities’ right to tax treaty relief on indirect transfers, reinforcing the sanctity of Tax Residency Certificates (TRCs) and the limitations of treaty abuse claims.
- New guidance on arm’s length pricing for cross-border intercompany loans, particularly when loans are financed through Indian bank borrowings.
This edition is a must-read for professionals involved in international tax planning, cross-border structuring, and transfer pricing compliance. Topics such as Base Erosion and Profit Shifting (BEPS), treaty shopping, and General Anti-Avoidance Rules (GAAR) are also explored in the context of recent legal developments.
