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  • The OECD and India have been cooperating since 1995 and became an official observer in 2008. But in June the two signed an agreement to broaden tax cooperation over the next three years. Many see this as the final stage before becoming a full member. Jack Grocott looks at India’s tax system to see why it is not ready to take the next step and join the OECD.
  • Akil Hirani and Ravishankar Raghavan of Majmudar & Co provide case studies on how to utilise permanent establishments for outsourcing transactions in India and how to avoid the associated risks.
  • As the US government winds down before the July 4 Independence Day holiday, the idea of a tax repatriation holiday is gaining steam in Congress.
  • K Swaminathan of Lakshmi Kumaran & Sridharan asks the question, through the use of a case study, of what if an Indian company expanding its operations outside India wishes to license its trademark for no fee while at the same time analysing the associated risks and benefits.
  • The Supreme Court of India is getting serious about fighting tax abuse. Erin Kelechava investigates why the court is so concerned that the government has not been working quickly enough to combat the problem, despite new initiatives, legislation and international agreements.
  • Kim Marie Boylan has joined White & Case as a partner in Washington, DC.
  • Rohan Phatarphekar of KPMG and Akash Arora of BSR & Co explain how taxpayers can ring-fence their tax liabilities under India’s pending general anti-avoidance rules (GAAR) by the effective use of various transfer pricing tools.
  • A failure on the part of Indian pharmaceutical companies to keep their pricing policies in sync with the arm’s-length standard is being used by the authorities for making transfer pricing adjustments in the sector. Milind Kothari and Gaurav Shah of MZS & Associates highlight the transfer pricing traps for the industry, with the aid of recent case law.
  • The Indian government is rumoured to have changed tack on its structuring of the upcoming advance pricing arrangement (APA) programme. Taxpayers expected a unilateral APA to be incorporated into the Direct Taxes Code in 2012 but officials could be bending to arguments from lobbyists that this way of establishing certainty about transfer pricing would be arbitrary. Sophie Ashley takes a fresh look at the APA process and considers the pros and cons to unilateral and bilateral APAs.
  • Daksha Baxi and Surajkumar Shetty of Khaitan & Co analyse a decision from the Authority for Advance Rulings which ruled that the cross-charge of salary cost under a secondment arrangement represent fees for included services and so warrants withholding tax.