Summary: 1. Cases • India: Glenmark Pharmaceuticals - Mumbai Income Tax Appellate Tribunal - Transfer pricing in regard to guarantee fees - “Naked quotes” on bank websites should not be used as direct comparables - “Conceptual and legal” differences between bank guarantees and corporate guarantees: such differences should be reflected in adjustments - “Interest saved approach” effectively endorsed - For information: Anis Chakravarty (Mumbai): anchakravarty@deloitte.com • India: Device Driven - Cochin Income Tax Appellate Tribunal - Commission agency fees paid to Swiss director of Indian company - “Fees for technical services” under India / Switzerland treaty? Yes - Article 14: “fixed base” in India? Yes - For information: K.R. Sekar (Bangalore): krsekar@deloitte.com • India: J.P. Morgan Securities - Mumbai Income Tax Appellate Tribunal - Article 11 (interest) of India / Singapore treaty: does it apply to surcharge and education cess? Yes - For information: K.R. Sekar (Bangalore): krsekar@deloitte.com 2. Treaties • Hong Kong / Qatar - Treaty entered into force • China / UK - New treaty and protocol entered into force • Singapore / San Marino and India / Macedonia - Two new treaties recently signed • Japan / UK - Protocol signed, with substantive amendments to existing 2006 treaty - Dividends: 5% rate abolished, and shareholding level for 0% rate reduced from 50% to 10% - Interest: 0% rate will generally apply, except for 10% rate for profit-participating loans and similar instruments - Article 7: 2010 edition of OECD model - Binding arbitration - Mutual assistance in the collection of taxes - For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp 3. India • Cyprus - India has given Cyprus a test - For information: K.R. Sekar (Bangalore): krsekar@deloitte.com • Nokia - Delhi High Court has allowed the sale of assets by Nokia India to Microsoft, subject to certain conditions 4. In brief • China: Circular 106 (VAT) - For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoye@deloitte.com.cn • Singapore: circular in regard to REITs - For information: Rohit Shah (Singapore): roshah@deloitte.com • New Zealand: old rulings - For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz 5. Things we are waiting for • India: Shome Committee – GAAR and indirect share transfers (carry-over from 2012) • Indonesia: Hong Kong / Indonesia treaty: “income subject to tax” (carry-over from 2012) • Vodafone: indirect share transfer dispute - settlement? • Japan: third arrow
