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.
