BO, LO & PO by foreign law firms - RBI issues fresh instruction - Taxindiainternational.com

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INTL - Once Revenue accepts that no income is taxable in India for relevant AY, the corresponding TDS deducted at source cannot be withheld & assessee is entitled to claim credit per Rule 37BA of I-T Rules: ITAT (See Breaking News)

INTL - Digital transmission & uploading of orders on ITBA portal is valid receipt by AO, effectively starting limitation clock from that date rather than from any subsequent physical handling or note-sheet entry: ITAT (See Breaking News)

DTAA - Payment for managerial, technical or consultancy services constitutes Fees for Technical Services only where such services are provided by resident of one contracting State in other contracting State: ITAT (See Breaking News)

I-T - Final assessment order passed u/s 143(3), 144C(13) and 144B can be quashed as time-barred if it is passed beyond outer limitation prescribed u/s 153 r/w/s 144C: ITAT (See Breaking News)

I-T - Subsidiary with own manufacturing unit, independent customer base can't not be treated as economically dependent on its foreign parent, and does not constitute a Dependent Agency PE: ITAT (See Breaking News)

TP - Fully & compulsorily convertible debentures retain their character as debt until actually converted into shares & regulatory frameworks or accounting standards operating in different fields cannot be imported to alter this position for transfer-pricing purposes: ITAT (See Breaking News)

TP - Revenue must first establish existence of international transaction regarding AMP expenses de hors Bright Line Test, which has no statutory mandate: ITAT (See Breaking News)

I-T - Requirement of furnishing Form 67 is directory and procedural & cannot override substantive entitlement to credit for foreign taxes paid u/s 90 or 90A: ITAT (See Breaking News)

TP - For cross-border transactions involving foreign currency receivables, the appropriate interest rate to adopt is LIBOR rate rather than domestic rates: ITAT (See Breaking News)

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BO, LO & PO by foreign law firms - RBI issues fresh instruction By TII News Services Nov 23, 2020 , New Delhi
A.P. (DIR Series) CIRCULAR NO 07/RBI, Dated: November 23, 2020 To, All Category - I Authorized Dealer Banks Establishment of Branch Office (BO) / Liaison Office (LO) / Project Office (PO) or any other place of business in India by foreign law firms Attention of the Authorised Dealer (AD - Category I) banks is invited to AP (DIR Series) Circular No. 23 dated October 29, 2015, on the above issue advising that no fresh permissions/ renewal of permission shall be granted by the Reserve Bank/AD Category-I banks to any foreign law firm for opening of Liaison Office in India, till the policy is reviewed based on, among others, final disposal of the matter by the Hon'ble Supreme Court. 2. The Hon'ble Supreme Court has while disposing of the case, held that advocates enrolled under the Advocates Act, 1961 alone are entitled to practice law in India and that foreign law firms/companies or foreign lawyers cannot practice profession of law in India. As such, foreign law firms/companies or foreign lawyers or any other person resident outside India, are not permitted to establish any branch office, project office, liaison office or other place of business in India for the purpose of practicing legal profession. Accordingly, AD Category - I banks are directed not to grant any approval to any branch office, project office, liaison office or other place of business in India under FEMA for the purpose of practicing legal profession in India. Further, they shall bring to the notice of the Reserve Bank in case any such violation of the provisions of the Advocates Act comes to their notice. 3. All other provisions of the BO/LO/PO policy shall remain unchanged. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers. 4. The Master Direction No. 10 dated January 1, 2016 is being updated simultaneously to reflect the changes. 5. The directions contained in this circular have been issued under Section 10(4) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. [RBI/2020-21/69] (Ravinder Singh Amar) Chief General Manager

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