Tax on corporate transactions in India: overview

A Q&A guide to tax on corporate transactions in India.

The Q&A gives a high level overview of tax in India and looks at key practical issues including, for example: the main taxes, reliefs and structures used in share and asset sales, dividends, mergers, joint ventures, reorganisations, share buybacks, private equity deals and restructuring and insolvency.

To compare answers across multiple jurisdictions, visit the Tax on corporate transactions Country Q&A tool.

The Q&A is part of the Multi-jurisdictional Guide to tax on Corporate Transactions. For a full list of jurisdictional Q&As visit www.practicallaw.com/taxontransactions-mjg.

Atul Dua and Gautam Chopra, Seth Dua and Associates
Contents

Tax authorities

1. What are the main authorities responsible for enforcing taxes on corporate transactions in your jurisdiction?

The Constitution delegates power to levy tax to central government and state governments. Local authorities, such as municipalities, levy some local taxes under powers given to them by state governments.

The main authorities responsible for tax on corporate transactions are:

  • The Central Board of Direct Taxes (CBDT), part of the Department of Revenue in the Ministry of Finance. CBDT supports policy and planning for (federal) direct taxes. It also administers direct tax.

  • The Central Board of Excise and Customs (CBEC). CBEC is the national agency that administers customs, central excise and service tax (federal indirect taxes).

  • State governments, which levy and collect state taxes, for example, tax on the sale of goods and octroi (a form of local customs tax).

  • Municipalities, responsible for levying and collecting taxes at the local level, for example, municipal tax on services and real estate tax.

 

Pre-completion clearances and guidance

2. Is it possible to apply for tax clearances or obtain guidance from the tax authorities before completing a corporate transaction?

There are a number of ways to obtain advance clearance and guidance from the authorities depending on the type of tax:

  • The Authority for Advance Rulings (AAR), part of the Ministry of Finance, provides rulings on the income tax consequences of transactions entered into by non-residents and other eligible taxpayers. The AAR rulings bind both the applicant and the Department of Revenue.

  • The Authority for Advance Rulings (Central Excise, Customs and Service Tax) (AAR(CECST)) provides advance rulings on indirect tax matters.

  • A taxpayer can seek an Advance Pricing Agreement (APA) to determine acceptable transfer prices in advance of a transaction. An APA is a written agreement between a taxpayer and the tax authorities in respect of specified related party transactions. The Department of Revenue cannot challenge transfer prices after it has agreed to an APA.

  • Under safe harbour rules, the tax authorities accept the transfer price declared by the taxpayer without detailed scrutiny. Safe harbour rules apply in certain sectors only. The rules specify an appropriate/acceptable margin for the transaction. If the margin is achieved, no transfer pricing adjustment will be made by the Revenue. The CBDT makes safe harbour rules under legislation intended to reduce the increasing number of transfer pricing audits and litigation (section 92CB, Income Tax Act 1961).

Safe harbour rules do not apply to an international transaction with an associated enterprise located in:

  • any notified country or territory; or

  • in a no tax or low tax country or territory.

  • The Assessing Officer has the power to issue a withholding tax certificate authorising lower or no deduction of tax where the rate of tax deduction to be applied on certain payments is uncertain. The Assessing Officer usually issues certificates to the person receiving the payment, but they may be issued to the deductor in certain cases.

Withholding tax certificates given by the assessing officer are not a final determination of the payee's tax liability. Certificates determine the liability of the payer to withhold tax.

 

Main taxes on corporate transactions

Transfer taxes and notaries' fees

3. What are the main transfer taxes and/or notaries' fees potentially payable on corporate transactions?

Stamp duty

Stamp duty is payable on specified instruments or documents. An instrument that transfers any movable or immovable property is liable to stamp duty. Examples of documents subject to stamp duty include:

  • Share transfer deeds.

  • Share purchase agreements.

  • Shareholders' agreements.

  • Slump sales agreement.

  • Joint venture agreements.

  • Asset sale agreements.

  • Merger agreements.

Generally, stamp duty is charged at a percentage of the value comprised in the instrument liable to stamp duty. The buyer generally pays the stamp duty. However, parties can agree between them as to who bears the stamp duty, or to share the liability.

 

Corporate and capital gains taxes

4. What are the main corporate and/or capital gains taxes potentially payable on corporate transactions?

Corporate tax

A resident company is subject to tax on its worldwide income, unless the income is specifically exempt.

A non-resident company is subject to Indian tax on India-source income and on income received in India. Depending on the circumstances, certain income is deemed India-source income.

The following are the applicable tax rates for financial year 2014-15:

  • Taxable income of a domestic company:

    • up to INR10 million: 30.90%;

    • exceeding INR10 million but less than INR100 million: 32.45%;

    • exceeding INR100 million: 33.99%.

  • Taxable income of a foreign company:

    • up to INR10 million: 41.20%;

    • exceeding INR10 million but less than INR100 million: 42.02%;

    • exceeding INR100 million: 43.26%.

Capital gains

Income tax law prescribes special tax rates for the taxation of capital gains. Gains derived from the transfer of capital assets are subject to tax as capital gains and are deemed to be income in the year of the transfer.

There is a broad definition of "transfer" and "capital asset" in the domestic law. Shares or interests in foreign entities are deemed to be capital assets located in India if such shares derive their value substantially from assets located in India, either directly or indirectly. Gains derived from the transfer of deemed capital assets are taxable in the year of transfer.

Capital gains tax rate for assets except shares, mutual funds and listed securities. The capital gains tax rate depends on whether the capital asset transferred is a short-term capital asset or a long-term capital asset.

A short-term capital asset is a capital asset held for less than 36 months before the date of its transfer. Shares, units of mutual funds and other securities are not short-term capital assets, see Question 14.

A long-term asset is a capital asset that is not a short-term capital asset.

The capital gains tax rate for all assets except listed securities is:

  • Short-term capital gains: normal income tax rates apply.

  • Long-term capital gains: 20%.

Cost inflation index. The cost inflation index (CII) increases the cost of acquisition of an asset. The CII is based on the rate of inflation.

The cost of acquisition is the amount that the taxpayer has paid to acquire that asset (indexed cost of acquisition = actual cost of acquisition x CII of year of sale divided by CII of year of purchase).

Capital gains tax on listed securities and shares. The following are long-term assets if they are held for 12 months or more:

  • Shares in a company.

  • Other securities listed on a recognised stock exchange in India.

  • Units of a mutual fund or specified zero-coupon bonds.

Other assets must be held for 36 months to qualify as long-term assets. A capital asset that is not a short-term capital asset is a long-term capital asset, see Question 9.

Value added and sales taxes

5. What are the main value added and/or sales taxes potentially payable on corporate transactions?

Sales of shares are generally exempt from VAT and central sales tax (CST). However, CST or VAT is likely to arise on asset acquisitions, if the transaction involves a transfer of assets situated in India between two separate entities in the sale of a business as a going concern (slump sale) or other business transaction.

VAT

State governments levy and collect VAT. The tax rate varies from 2% to 12.5%.

Other taxes on corporate transactions

6. Are any other taxes potentially payable on corporate transactions?

Service tax

Service tax applies at a rate of 12.36% on activities that constitute a taxable service. Service tax is paid on the gross amount charged by the service provider.

Securities transaction tax (STT)

STT applies on the value of taxable securities transactions made at a recognised stock exchange in India. The rates are as follows:

  • Taxable income on purchase/sale of equity shares (delivery-based): 0.1% (payable by buyer/seller).

  • Taxable income on purchase of units in an equity-oriented mutual fund (delivery based): nil (payable by buyer).

  • Taxable income on sale of units in an equity-oriented mutual fund (delivery based): 0.001% (payable by seller).

  • Taxable income on sale of equity shares, units of equity-oriented mutual fund (non-delivery based): 0.025% (payable by seller).

  • Taxable income on sale of an option in securities: 0.017% (payable by seller).

  • Taxable income on sale of an option in securities, where the option is exercised: 0.125% (payable by buyer).

  • Taxable income on sale of security futures: 0.01% (payable by seller).

  • Taxable income on sale of units in an equity-oriented fund to a mutual fund: 0.001% (payable by seller).

From 1 October 2014, listed units of business trusts traded on recognised stock exchange also attract STT.

 

Taxes applicable to foreign companies

7. In what circumstances will the taxes identified in Questions 3 to 6 be applicable to foreign companies (in other words, what "presence" is required to give rise to tax liability)?

Direct tax

A foreign company is liable to tax on only the income it earns in India.

Income is earned in India if:

  • It accrues or arises in India.

  • Is deemed to accrue or arises in India.

  • Is received or deemed to be received in India.

Income may accrue or arise directly or indirectly:

  • Through or from any business connection in India.

  • Through or from any property located in India.

  • Through or from any asset or source of income in India.

  • Through the transfer of a capital asset situated in India.

Capital gains

Transferors are liable for capital gains tax on the transfer of capital assets situated in India. A transfer is taxable if it involves the transfers of shares of an Indian company or, in certain cases, shares of a foreign company that indirectly holds the shares of an Indian company.

The rate of tax on capital gains varies from 0% to 40% depending on the type of asset, the holding period and the status of the non-resident.

The taxpayer may benefit from relief under a double taxation avoidance agreement (DTAA).

Foreign companies are not entitled to indexation relief on shares and debentures. However, foreign companies may benefit from fluctuations in currency exchange rates when computing short-term taxable gains.

Income tax on acquisition of shares by non-residents

A non-resident that acquires shares in an Indian company at less than fair market value may be taxed on the difference between fair value and the amount paid. Relief may be available under a DTAA.

 

Dividends

8. Is there a requirement to withhold tax on dividends or other distributions?

Dividends

Domestic companies pay dividend distribution tax (DDT) at approximately 17% on the gross amount of dividends declared, distributed or paid by them. DDT is a non-deductible expense.

For fiscal years 2011-12, 2012-13 and 2013-14, domestic companies pay tax at a concessionary rate of 15% (plus surcharge and cess) on gross dividends received from a foreign company in which it owns 26% or more of the shares.

Special rules apply for dividends received between 1 June 2013 and 31 March 2014 by a domestic company from a foreign company (in which it has a shareholding 26% or more). These dividends may be set off against the subsequent dividends paid by the Indian company to its shareholders on which DDT is payable.

Other distributions

There is no withholding tax requirement on dividends paid by a company to either residents or non-residents.

Royalties and fees for technical services paid to a non-resident are subject to withholding tax of 25%, subject to any benefits under the applicable double taxation avoidance agreement (DTAA).

Interest payments on debt instruments are subject to withholding tax of between 5% and 40%, depending on the type of instrument and the tax residence of the recipient.

 

Share acquisitions and disposals

Taxes potentially payable

9. What taxes are potentially payable on a share acquisition/share disposal?

Share acquisition

If shares of a closely held company are bought at lower than fair market value, the buyer may be taxable on the difference between the price paid and the fair market value, see Question 4 and Question 6.

Share disposal

Stamp duty. Stamp duty is payable on the transfer of shares or other contracts related to the disposal of shares in a company, see Question 3.

VAT. VAT does not apply on the transfer of shares, see Question 5.

Capital gains

The capital gains tax regime applies to all types of taxpayers, including foreign institutional investors (FIIs).

The rate of capital gains tax payable by sellers on the transfer of shares depends on whether the shares are:

  • Long-term assets. A share is a long-term capital asset if is held for more than 12 months immediately before the date of transfer.

  • Short-term assets. A share is a short-term capital asset if it is held for less than 12 months immediately before the date of transfer.

The rate of capital gains tax also depends on whether securities transactions tax (STT) has been paid on the transaction.

Capital gains tax where STT is payable. If STT has been paid:

  • There is no capital gains tax on long-term capital gains derived from the:

    • transfer of equity shares or units of an equity-oriented fund on a recognised stock exchange in India;

    • transfer of units of an equity-oriented fund to a mutual fund; or

    • sale of unlisted equity shares included in an initial public offer.

  • Short-term capital gains are taxable at a reduced rate of 15% plus the surcharge, as applicable, and cess, if they are derived from the:

    • transfer of equity shares or units of an equity-oriented fund on a recognised stock exchange in India;

    • transfer of units of an equity-oriented fund to a mutual fund; or

    • sale of unlisted equity shares included in an initial public offer.

Capital gains tax where no STT is payable. For sales of shares and units of mutual funds and for capital gains derived from the transfer of a capital asset that is not a specified security, the capital gains tax rates are as follows:

  • Domestic companies:

    • short-term capital gains rate: 30%;

    • long-term capital gains rate: 20%.

  • FIIs:

    • short-term capital gains rate: 30%;

    • long-term capital gains rate: 10%.

  • Non-residents other than FIIs:

    • short-term capital gains rate: 40%;

    • long-term capital gains rate: 20% (from 2012-2013, gains from the transfer of unlisted securities are taxable at 10%, though calculations cannot take currency fluctuations or inflation into account).

The tax is also subject to a surcharge and cess, as applicable.

Exemptions and reliefs

10. Are any exemptions or reliefs available to the liable party?

The following transactions are exempt from tax:

  • Certain long-term capital gains where STT has been paid on the transaction, see Question 9.

  • The transfer of a capital asset by a parent company to its wholly-owned Indian subsidiary, or the transfer of a capital asset by a wholly-owned subsidiary to its Indian parent company if the recipient is an Indian company.

  • Transfers involving the conversion of bonds, debentures, debenture stocks, deposit certificates into shares and debentures of the same company.

  • Any exchange of shares in a qualifying amalgamation of companies.

 

Tax advantages/disadvantages for the buyer

11. Please set out the tax advantages and disadvantages of a share acquisition for the buyer.

Advantages

The acquisition of shares is exempt from VAT. The acquisition of assets is subject to VAT.

Disadvantages

The buyer may need to pay income tax on the difference between the fair market value and the acquisition cost of the shares. The buyer is not responsible for the obligation to withhold tax. Losses cannot be carried forward if more than 50% of the shares change hands.

 

Tax advantages/disadvantages for the seller

12. Please set out the tax advantages and disadvantages of a share disposal for the seller.

Advantages

The seller is not liable to capital gains tax on the sale of shares, as they are a long-term capital asset on which securities transactions tax (STT) is paid. A non-resident seller may be exempt from tax on the sale of shares under a double taxation avoidance treaty (DTAA).

Disadvantages

A non-resident may not be able to credit STT tax paid on disposal of shares under a DTAA.

 

Transaction structures to minimise the tax burden

13. What transaction structures (if any) are commonly used to minimise the tax burden?

Overseas holding companies and special purpose vehicles are used as holding structures to minimise tax. However, the tax authorities can question and disregard a structure where it is shown that a structure lacks economic substance.

 

Asset acquisitions and disposals

Taxes potentially payable

14. What taxes are potentially payable on an asset acquisition/asset disposal?

Asset sale

Stamp duty. Stamp duty is payable on the transfer of movable and immovable assets. The stamp duty is paid on the deeds that convey movable and immovable assets, see Question 3.

VAT. The transfer of movable or intangible assets is subject to VAT. The rate of VAT depends on VAT legislation in the state concerned (see Question 5).

Capital gain

Tax is due on the gains that arise on the sale of assets. The gains can be short-term capital gains (STCG) or long-term capital gains (LTCG) (see Question 4).

Unless the assets are shares or mutual funds, the gains will be:

  • STCG if the asset is held for less than 36 months.

  • LTCG if the asset is held for more than 36 months.

The capital gain tax rate for all assets except shares and mutual funds and listed securities is:

  • The same as normal income tax rates (slabs) for STCG.

  • 20% for LTCG.

A sale of a business as a going concern (slump sale)

A sale of all or part of a business as a going concern, rather than the sale of separately identified and valued assets, is known as a slump sale.

Stamp duty. Slump sales are treated as a transfer of an asset, liable to stamp duty. There is no specific provision in the Stamp Act or the state Stamp Acts that relate to slump sales. The rate of stamp duty on movable property varies under the various state Stamp Acts, see Question 3.

VAT. VAT may or may not apply to a slump sale, see Question 5.

Capital gains. Income tax laws provide for the taxation of profits and gains arising from the sale of a business as a going concern as capital gains. If the transferor has held the undertaking or undertakings for more than 36 months before the transfer, it pays tax on the profits and gains as long-term capital gains. Otherwise, gains are taxed as short-term capital gains, see Question 4.

 
15. Are any exemptions or reliefs available to the liable party?

Not all transactions are transfers for capital gains purposes. These transactions are exempt from tax, see Question 10.

Tax advantages/disadvantages for the buyer

16. Please set out the tax advantages and disadvantages of an asset acquisition for the buyer.

Advantages

The buyer can increase the cost of a business asset by the consideration paid to acquire the asset. The buyer can offset any expenditure incurred to acquire the business asset when calculating their business profits.

Disadvantages

The buyer does not acquire the company's losses. Tax holiday and incentives available to the seller may not be transferred to the buyer. VAT applies on an asset sale.

 

Tax advantages/disadvantages for the seller

17. Please set out the tax advantages and disadvantages of an asset disposal for the seller.

Advantages

On the sale of the business as a going concern (slump sale), values are not attributed to individual assets for the purpose of capital gains calculations.

If the undertaking is owned and held by the transferor for more than 36 months, capital gains arising on slump sale of the undertaking are long-term capital gains. This applies even if the transferor has held some of the assets of the undertaking for less than 36 months.

There is no distinction between depreciable and non-depreciable assets in slump sales.

Disadvantages

The seller does not benefit from indexation relief in a slump sale. When calculating the net value for the calculation of the acquisition cost, any asset revaluation is ignored.

 

Transaction structures to minimise the tax burden

18. What transaction structures (if any) are commonly used to minimise the tax burden?

A transfer of assets from one entity to another can be structured more tax- efficiently as a demerger. A tax neutral demerger requires:

  • All the assets and liabilities of the demerged undertaking to become the property of the transferee company at book value.

  • Consideration to be discharged by the issue of shares to the shareholders of the transferee company on a proportionate basis.

  • Shareholders of 75% or more in value of shares in the demerged company to become shareholders of the transferee company.

 

Legal mergers

Taxes potentially payable

19. What taxes are potentially payable on a legal merger?

Stamp duty

Stamp duty is levied on a merger. Stamp duty is a state levy and is imposed in the state where the assets are located before the transfer, see Question 3.

VAT/service tax

The merger or sale of business may not be a transaction in the course of business. It may or may not attract VAT. Specific state legislation determines whether VAT applies. Service tax does not apply on the transfer of business, see Question 5.

Capital gain tax

The merger of a company can be tax neutral from an income tax perspective. There are no tax implications for the merging companies or their shareholders. For a merger to be tax neutral, the following conditions must apply:

  • All the property of the merging company must become the property of the merged company.

  • All liabilities of the merging company must become liabilities of the merged company.

  • Shareholders of 75% or more in value of shares in the merging company must become shareholders of the merged company, see Question 4.

 

Exemptions and reliefs

20. Are any exemptions or reliefs available to the liable party?

Merging company

There is no capital gain on the transfer of capital assets. Depreciation is available on a pro rata basis in the year of transfer. There is no tax holiday available to the merging company in the year of transfer, but the holiday is available to the merged company. VAT does not apply to tax-neutral mergers.

Merged company

Depreciation is allowable on the basis of the tax written down value in the merging company. The expenditure on the merger is tax deductible in five equal instalments. The merged company is taxed on any cessation of liability of the merging company (that is, if the merging company had earlier claimed a relief from taxes on account of a liability, and there is a remission in such liability subsequently, the merged company is taxable in respect of such remission). When determining the holding period of an asset, the period includes the time the merging company held the asset. The merged company can use the accumulated business losses and depreciation of the merging company in the year of the merger on certain conditions provided that the merged company is engaged in a specified business. VAT does not apply where the merger is tax neutral.

Shareholders

The shareholders of the merging company are not liable for tax on capital gains on the transfer of capital assets.

 

Transaction structures to minimise the tax burden

21. What transaction structures (if any) are commonly used to minimise the tax burden?

Tax exemptions are available for most mergers, see Question 19.

In the case of non-qualifying mergers, tax may be due where shareholders receive consideration that is not in shares, for giving up their shareholding in the merging company. A non-resident shareholder located in a favourable tax jurisdiction may pay less tax.

 

Joint ventures

Taxes potentially payable

22. What taxes are potentially payable on establishing a joint venture company (JVC)?

There are no direct taxes payable on establishing a joint venture company. However, stamp duty may be payable on the joint venture agreement.

 

Exemptions and reliefs

23. Are any exemptions or reliefs available to the liable party?

There are no specific reliefs or exemptions.

 

Transaction structures to minimise the tax burden

24. What transaction structures (if any) are commonly used to minimise the tax burden?

A wholly-owned subsidiary structure avoids capital gains tax on transfers between a holding company and a subsidiary company. The recipient must be an Indian company.

In the case of joint ventures, tax may be payable at various levels and points in the structure, especially in the case of dividend distribution tax on the distribution of profits from a joint venture company to joint venture partners. Transfer taxes may be mitigated if the investment is made by a company located in a jurisdiction or country which has a favourable tax treaty with India.

 

Company reorganisations

Taxes potentially payable

25. What taxes are potentially payable on a company reorganisation?

Income tax law does not contain any special provisions relating to company reorganisations. Reorganisations are taxed under the general tax provisions.

 

Exemptions and reliefs

26. Are any exemptions or reliefs available to the liable party?

There are no specific reliefs available.

 

Transaction structures to minimise the tax burden

27. What transaction structures (if any) are commonly used to minimise the tax burden?

Trusts, limited liability partnerships or specific exemptions may provide tax efficient structures depending on the business and commercial objectives.

 

Restructuring and insolvency

28. What are the key tax implications of the business insolvency and restructuring procedures in your jurisdiction?

When a liquidating company distributes assets to its shareholders, there is no capital gains tax as the transaction is not considered as a transfer of assets.

However, if a liquidating company makes a distribution to its shareholders that is attributable to the company's accumulated profits immediately before liquidation, it is deemed a dividend and therefore subject to dividend distribution tax (DDT). The dividends are tax exempt in the hands of the shareholder.

A distribution to shareholders in excess of an amount that is deemed a dividend is considered a capital gain and accordingly subject to tax.

 

Share buybacks

Taxes potentially payable

29. What taxes are potentially payable on a share buyback? (List them and cross-refer to Questions 3 to 6 as appropriate.)

Tax is charged on buybacks of unlisted shares at an additional 22.66% rate that includes a surcharge and cess. The tax is due on the difference between the price at which the company buys back the shares and the consideration it receives for the issue of shares.

 

Exemptions and reliefs

30. Are any exemptions or reliefs available to the liable party?

Shareholders are not taxed on the amount received on a buyback.

 

Transaction structures to minimise the tax burden

31. What transaction structures (if any) are commonly used to minimise the tax burden?

Buyback tax now blocks the tax advantages previously available on share buyback transactions. It may be possible to achieve a level of tax mitigation by the sale of stakes in a company or the use of long-term capital gains tax rates.

 

Private equity financed transactions: MBOs

Taxes potentially payable

32. What taxes are potentially payable on a management buyout (MBO)?

Not applicable.

 

Exemptions and reliefs

33. Are any exemptions or reliefs available to the liable party?

Not applicable.

 

Transaction structures to minimise the tax burden

34. What transaction structures (if any) are commonly used to minimise the tax burden?

Not applicable.

 

Reform

35. Please summarise any proposals for reform that will impact on the taxation of corporate transactions.

Direct tax code (DTC)

A draft of a new DTC that seeks to replace the current direct tax law was published inviting public comments in March 2014. There is no timeline for its introduction.

General anti-avoidance rules (GAAR)

GAAR are scheduled to come into effect from 1 April 2015. GAAR empowers a tax officer to recharacterise a transaction or ignore its effect for tax purposes, if he believes the transaction has been entered into with the primary objective of obtaining tax benefits. GAAR do not apply:

  • Where the tax benefit does not exceed INR30 million.

  • Where the benefit accrues to specified foreign institutional investors.

  • To any income from a transfer of investments made before 30 August 2010.

GAAR will apply to any arrangement, irrespective of the date on which it was made, if the tax benefit is obtained on or after 1 April 2015.

Goods and services tax (GST)

The latest budget mentions the need to implement a goods and services tax (GST). GST is an indirect tax that brings together most of the taxes that are imposed on the majority of goods and services under a single tax. Under the current system, taxes are levied separately on goods and services.

GST is a comprehensive form of tax based on a uniform rate of tax for both goods and services. GST is payable only at the final point of consumption.

 

Online resources

Directorate of Income Tax (Public Relations, Printing & Publications, Official Language)

W www.incometaxindiapr.gov.in/incometaxindiacr/home.jsp

Description. The site of the Directorate of Income Tax (Public Relations, Printing & Publications, Official Language) of the government of India. The site is updated regularly and provides the latest provisions, rules, circulars and notification of income tax laws.

Central Board of Excise and Customs (CBEC)

W www.cbec.gov.in/cae1-english.htm

Description. The Central Board of Excise and Customs (CBEC) is a part of the Department of Revenue under the Ministry of Finance, Government of India. It formulates policies for the levy and collection of customs and central excise duties and service tax, prevention of smuggling and administration of matters relating to customs, central excise, service tax and narcotics. The Board is the administrative authority for its subordinate organisations, including Custom Houses, Central Excise and Service Tax Commissioners and the Central Revenues Control Laboratory.



Contributor profiles

Atul Dua, Senior Partner

Seth Dua & Associates

T +91-11-41644100
F +91-11-41644600
E atul.dua@sethdua.com
W www.sethdua.com

Professional qualifications. Member of the Bar Council of Delhi; Chartered Accountant

Areas of practice. Corporate tax; international tax; international trade; dispute resolution.

Non-professional qualifications. Bachelor of Commerce; Bachelor of Laws

Recent transactions

  • Foster's Group, Australia: advice relating to capital gains tax in India on sale of shares of a Mauritian entity and the tax implications of the sale of trade mark and other IP rights outside India.
  • Jcdecaux Advertising (India) Pvt. Ltd: advice on direct and indirect issues in day to day transactions relating to its India operations, including transactions with Bangalore International Airport Limited.
  • Audi Ag, Germany: advice to Audi, Germany, an automotive giant on all significant matters relating to its India entry strategy including foreign investment policy matters in relation to wholesale and retail business.

Languages. English, Hindi, Punjabi

Professional associations/memberships. Honorary positions in the Inter-Pacific Bar Association; Society of Indian Law Firms and Associated Chambers of Industry and Commerce; Secretary of the Competition Law Bar Association, India.

Publications

  • Contributor to Joint Ventures and Mergers & Acquisitions in India – Legal & Tax Aspects, Butterworths/ LexisNexis.
  • Presentations at various international conferences and seminars organised by the Inter-Pacific Bar Association, International Fiscal Association, UIA and Lawasia.

Gautam Chopra, Partner

Seth Dua & Associates

T +91-11-41506600
F +91-11-41644600
E gautam.chopra@sethdua.com
W www.sethdua.com

Professional qualifications.ACA; ACS; member of Bar Council of Delhi; Chartered Accountant

Areas of practice. Corporate tax, international tax, transfer pricing, international trade.

Non-professional qualifications. B.Com (Hons) LLB

Recent transactions

  • Advised Nissan group on restructuring their operations in India from a tax perspective.
  • Advised a large multinational group in the energy sector on structuring their proposed acquisition and business operations in India.
  • Acted for a large private equity group in relation to their proposed acquisition of an Indian entity in the pharma sector.
  • Advised Triune Group on their dispute with the revenue in relation to a business acquisition.
  • Represented a large Indian company before the Tax tribunal in relation to its dispute with the Indian Revenue.

Languages. English, Hindi

Professional associations/memberships. International Fiscal Association; ITAT Bar Association; Bar Council of Delhi; International Bar Association.

Publications

  • GAAR - need for best practices, ASSOCHAM.
  • Profit attribution to PEs - challenges, IFA India Conference.
  • Export commission agents - taxability in India, mondaq.com.
  • Liaison offices - Indian tax exposure.

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1248109417031", "objName" : "Tax on corporate transactions in India overview", "userID" : "2", "objUrl" : "http://us.practicallaw.com/cs/Satellite/us/resource/7-598-4529?null", "pageType" : "Resource", "academicUserID" : "", "contentAccessed" : "true", "analyticsPermCookie" : "2-3b01f5d1:15b15deebd9:1dd6", "analyticsSessionCookie" : "2-3b01f5d1:15b15deebd9:1dd7", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }