India's tax year in review: a fireside chat with Dhruva Advisors
ITR Voices
More Info
ITR Voices
India's tax year in review: a fireside chat with Dhruva Advisors
Dec 21, 2023 Season 1 Episode 1
ITR Podcasts

Dhruva tax experts Mehul Bheda, Kulraj Ashpnani and Ashish Agrawal review a whirlwind year for tax in India, in an exclusive podcast with ITR

It was a transformative year for tax in India, as 2023 saw a host of highly anticipated Supreme Court decisions and government policies impact the way both domestic and multinational companies do business. 

To help navigate this dynamic period, ITR editor Tom Baker spoke with three experts from Dhruva Advisors, partners Mehul Bheda and Kulraj Ashpnani and associate partner Ashish Agrawal, in an in-depth and colourful fireside chat. 

First on the agenda was analysing the fallout from a 2022 Supreme Court ruling related to the taxation of secondees from multinational groups to Indian entities. The speakers highlighted that multinationals need to be careful in the underlying documentation of expat secondment arrangements.   

Next, Agrawal reviewed a Supreme Court ruling from October 2023 regarding most favoured nation (MFN) clauses with India. The ruling stated that specific notifications by the Indian government was mandatory to invoke the MFN clause in India’s tax treaties. 

Agrawal warned of the implications: "[The Supreme Court ruling on most favoured nation clauses] could have severe implications for Indian companies and overseas taxpayers especially for past transactions, and the government needs to deal with it in a more pragmatic way."

Bheda then chimed in with a summary of recent case law regarding the buyback of company shares and the ensuing dividend tax considerations, before discussing changes to India’s ‘angel tax’ rules.

"The 'angel tax' is very peculiar. If you issue shares at a premium, they have to conform with 'fair valuation rules'”, Bheda argued. 

“If the share premium is in excess of fair value, the excess will be treated as income and taxed accordingly. It's a very punitive provision. There is nothing 'angel' about it!"

The session concluded with all participants attempting some crystal ball-gazing, and predicting what new tax controversies will arise in 2024, a crucial election year in India. 

About Dhruva 

Dhruva is dedicated to setting industry standards through exceptional service delivery. With strategic prowess, Dhruva has successfully managed numerous substantial and pivotal tax disputes and related matters within India.

Dhruva’s esteemed team includes 15 partners, five senior advisors, 11 associate partners, 30 principals, and over 300 exceptionally talented professionals.

Episode Artwork India's tax year in review: a fireside chat with Dhruva Advisors 55:41 Episode Artwork Tax Insights: Vertex discusses how to manage tax in an omnichannel retail environment 16:45 Episode Artwork ITR Americas Awards - Deloitte discuss tax innovation and solutions across the Americas 39:56 Episode Artwork ITR Asia-Pacific Tax Awards - KPMG discuss tax transformation 17:04 Episode Artwork Tax Talks: Karine Halimi-Guez, FedEx (2) 15:24 Episode Artwork ITR Americas Awards - Deloitte discuss the impact of tax transformation across the Americas 22:07 Episode Artwork Tax Talks: Karine Halimi-Guez, FedEx 31:23 Episode Artwork Tax Talks: Ivan Ferreira, Siemens 12:12 Episode Artwork Tax Talks: Gemma Low, Royal Mail 19:56 Episode Artwork ITR Asia Tax Awards - A discussion with EY 23:08 Episode Artwork More M&A investments expected in Brazil after tax reform 6:12 Episode Artwork Taxpayer data increasingly important for Indian Revenue Service 5:03 Episode Artwork This week in tax: Pillar one and pillar two documents are leaked 9:00 Episode Artwork MNEs predict Indian faceless e-assessments will increase litigation 7:53 Episode Artwork This week in ITR: August 28 2020 8:27 Episode Artwork Tax Talks: Luiz de Medeiros Ferreira, Brasscom 11:34 Episode Artwork ITR Tax Round-up: August 21 7:38 Episode Artwork Tax Talks: Marc Mokrab, Technicolor 20:30 Episode Artwork Tax Talks: Emmanuelle Deglaire, Taxation of data 35:27 Episode Artwork Tax Talks: Hany Elnaggar, Nissan Middle East 18:36 Episode Artwork Tax Talks: Renato Becho 53:02 Episode Artwork ITR Europe Tax Awards Podcast with NERA Economic Consulting, Germany 25:18 Episode Artwork Tax Talks: Desmond De Battista, Burberry 21:08 Episode Artwork Tax Talks: Jayesh Rajyaguru, Wilmington 43:51 Episode Artwork Tax Reports: July 2020 15:25