Dhruva Advisors

A scheme of obtaining advance rulings has been in place in India since the early 1990s to help taxpayers better plan their affairs and to help prevent long and expensive litigation. Although this is a useful tool, there have been practical challenges and delays in obtaining advance rulings over the last few years. As a result, rulings which are required to be issued within six months are taking more than four years.

Gains arising from the transfer of capital assets situated in India are taxable in India. However, determining the tax treatment of intangible assets in an Indian context poses several challenges because of the limited guidance on this issue.

With a view to examining consequential issues arising out of amendments to the India-Mauritius tax treaty and related issues, a Working Group has been set up.