Dear Patron
Here we are with the Twenty Sixth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
S.P.Nagrath & Co.
This document is a newsletter from Utsav Shah & Associates that provides summaries of recent tax law developments in India. It discusses several Circulars and clarifications issued by the Central Board of Direct Taxes regarding issues like indirect transfers, cash transaction reporting requirements, identification of potential non-filers, and the Direct Tax Dispute Resolution Scheme. It also summarizes several important court judgments dealing with issues such as depreciation of goodwill, attribution of profits to a permanent establishment, and the applicability of Section 14A disallowance.
Weekly Tax Newsletter 07-06-2020- N Pahilwani & AssociatesNitin Pahilwani
The document discusses self-invoicing under the GST regime. Self-invoicing is required when goods or services are purchased from an unregistered supplier and the liability to pay tax is under reverse charge. Since the unregistered supplier cannot issue a GST invoice, the recipient must issue a self-invoice for documenting the tax liability and availing input tax credit. The key details are:
1. Self-invoicing is required for purchases covered under reverse charge as per Sections 9(3), 9(4) of the CGST Act and Sections 5(3), 5(4) of the IGST Act.
2. The recipient must issue an invoice within 30 days for goods and 60 days for services from
The document discusses amendments made by the Finance Act of 2012 related to tax deducted at source (TDS). Key points include:
- Explanations were added to section 9(1)(vi) regarding the definition of "royalty" and what is included.
- Amendments to sections 201 and 40(a)(ia) provide that the deductor will not be considered an assessee in default if certain conditions are met by the payee regarding filing of return and payment of tax.
- Sections 234E and 271H were introduced regarding levy of fees and penalties for delayed or incorrect filing of TDS/TCS statements.
- The timeline for passing orders holding a person
Dear Patron
Here we are with the Thirty second successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
Income-tax – Case law updates - V. K. SubramaniD Murali ☆
Income-tax – Case law updates - V. K. Subramani - Article published in Business Advisor, dated August 10, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
This document is a newsletter from Utsav Shah & Associates that provides summaries of recent tax law developments in India. It discusses several Circulars and clarifications issued by the Central Board of Direct Taxes regarding issues like indirect transfers, cash transaction reporting requirements, identification of potential non-filers, and the Direct Tax Dispute Resolution Scheme. It also summarizes several important court judgments dealing with issues such as depreciation of goodwill, attribution of profits to a permanent establishment, and the applicability of Section 14A disallowance.
Weekly Tax Newsletter 07-06-2020- N Pahilwani & AssociatesNitin Pahilwani
The document discusses self-invoicing under the GST regime. Self-invoicing is required when goods or services are purchased from an unregistered supplier and the liability to pay tax is under reverse charge. Since the unregistered supplier cannot issue a GST invoice, the recipient must issue a self-invoice for documenting the tax liability and availing input tax credit. The key details are:
1. Self-invoicing is required for purchases covered under reverse charge as per Sections 9(3), 9(4) of the CGST Act and Sections 5(3), 5(4) of the IGST Act.
2. The recipient must issue an invoice within 30 days for goods and 60 days for services from
The document discusses amendments made by the Finance Act of 2012 related to tax deducted at source (TDS). Key points include:
- Explanations were added to section 9(1)(vi) regarding the definition of "royalty" and what is included.
- Amendments to sections 201 and 40(a)(ia) provide that the deductor will not be considered an assessee in default if certain conditions are met by the payee regarding filing of return and payment of tax.
- Sections 234E and 271H were introduced regarding levy of fees and penalties for delayed or incorrect filing of TDS/TCS statements.
- The timeline for passing orders holding a person
Dear Patron
Here we are with the Thirty second successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
Income-tax – Case law updates - V. K. SubramaniD Murali ☆
Income-tax – Case law updates - V. K. Subramani - Article published in Business Advisor, dated August 10, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
INCOME TAX – INTERNATIONAL TAXATION
Tax Residency Certificate – DTAA Benefits
The Punjab and Haryana High Court, has held that Tax Residency Certificate issued by a foreign country can be considered valid for the purpose of claiming benefit under the Indo – Mauritius DTAA. The Court reversed the AAR Ruling and relied upon CBDT Circular No. 789 to the effect that certificate of residence issued by the Mauritius Authorities constitute sufficient evidence for residential status.
SARRAF_EXPORT vs. ITO, Ward -2, Churu JODH-2012suresh ojha
The Income Tax Appellate Tribunal was hearing appeals from M/s. Sarraf Export for assessment years 2005-06 and 2006-07 regarding the disallowance of a deduction claimed under Section 80IB of the Income Tax Act for an amount credited as Duty Entitlement Pass Book. The Tribunal found that the Assessing Officer's withdrawal of the deduction, which was initially allowed, under Section 154 was not valid as the issue was debatable given an amendment to Section 28 and relevant case law. Therefore, the Tribunal allowed the appeals and reversed the orders of the Commissioner of Income Tax (Appeals).
Dear Patron
Here we are with the Thirty third successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
Dear Patron,
Here we are with the Thirty forth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
Project Office For Communication Purposes: Will It Constitute A PE?DVSResearchFoundatio
Key Takeaways:
- Background of the Case
- Contentions of the Department and Assessee
- Principles and Precedents Governing the Rule of PE
- Supreme Court's Verdict
Corporate Updates
SEBI
Recording of Non Disposal Undertaking (NDU)in the Depository System
Interest and Dividend information reporting in case of Custodial Accounts-Rule 114G(1)(e) of the Income Tax Rules, 1962
Non-compliance with certain provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009
MCA
MCA comes out with further exemptions to Private Companies and notifies the amendment to the principal notification dated 5th June, 2015
MCA comes out with further exemptions to Government Companies and notifies the amendment to the principal notification dated 5th June, 2015
TAXATION
CBDT provides clarification on Reduced Liability of Tax on complex, building, flat etc. under GST
Company Website:
www.acquisory.com
Dear Members,
We are pleased to present TransPrice Times for the first fortnight of April 2017.
This periodical covers some key aspects from transfer pricing and international taxation, including rulings on foreign tax credit, royalties, benefit test and withholding taxes. For all the innovators, it is important to note the release of Form No. 3CFA for obtaining tax relief under patent box regime under S. 115BBF of the Income-tax Act 1961.
We would be happy to know your suggestions. You can write to us at akshaykenkre@transprice.in
Thank You and Happy Reading!!
- Advocates alone are entitled to practice law and appear before revenue authorities based on recent court rulings.
- The constitution bench of the Supreme Court ruled that chartered accountants and company secretaries cannot represent parties in appeals before the National Tax Tribunal as they are not qualified to handle legal matters.
- Only advocates licensed under the Advocates Act are accountable for professional negligence when practicing law, not chartered accountants or other professionals. Therefore, only advocates should be allowed to appear before income tax authorities on behalf of assessees.
1. Section 14A of the Income Tax Act was introduced to ensure that no deduction is allowed against taxable income for expenditure incurred in earning exempt income.
2. There is an ongoing debate around whether disallowance under section 14A can be made in a year where the assessee has not earned any exempt income. While the tax department and a Special Bench view was that disallowance can be made irrespective of exempt income, various High Courts have held that no disallowance can be made in the absence of exempt income in a year.
3. The current legal position, based on recent High Court rulings, is that no disallowance under section 14A should be made for a year
Consideration of Penalty Proceedings Order for Quantum Assessment: Analysis o...DVSResearchFoundatio
Key Takeaways:
- Facts of the Case
- Rulings by the Lower Authorities for Quantum Assessment
- Penalty Proceedings
- Supreme Court Ruling
- Conclusion and Key Takeaways
This document discusses filing income tax returns in India. It defines what a tax return is and explains the different forms used to file returns based on taxpayer type. Forms include ITR-1 through ITR-7. E-filing of returns is now mandatory for most taxpayers, including companies and individuals with income over Rs. 500,000. While documents don't need to be attached, they should be retained for potential audits. Filing returns on time avoids penalties and potential criminal prosecution for tax evasion. Overall, the document provides an overview of India's income tax return process.
NOTICE INVITING COMMENTS ON THE DRAFT COMPANIES (AUDITOR’S REPORT) ORDER, 2016GAURAV KR SHARMA
The document is a notice from the Ministry of Corporate Affairs in India inviting comments on the draft Companies (Auditor's Report) Order, 2016 by February 23, 2016. It summarizes that a committee was formed to examine matters to be included in auditor's reports under Section 143(11) of the Companies Act, 2013. The draft order has been placed online and public suggestions are invited. Stakeholders can submit comments along with their name, contact details and justification for each comment/suggestion.
Udyam registration is a government registration and certification provided to small and medium businesses in India. It provides a unique registration number and recognition certificate. Obtaining an Udyam registration has several benefits, including exemption from higher interest rates on loans, eligibility for subsidies and incentives. While registration was voluntary initially, the Reserve Bank of India has now made it mandatory for lenders to ensure MSME borrowers have registered. The key document required is the personal Aadhaar number of the proprietor, managing partner, or Karta for sole proprietorships, partnerships and HUFs respectively.
Revised draft of article 12 b income from automated digital servicesDVSResearchFoundatio
Key Takeaways:
Overview of Treaty Provision for Digital Taxation
Clarifications for Source Based Taxation
Amendments in Inclusion and Exclusion List
Way Forward
AUTOMATIC VACATION OF STAY GRANTED BY TRIBUNALDCIT v. PEPSI FOODS LTD. [2021]...DVSResearchFoundatio
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
Validity of Notice Issued for Income Escaping Assessment - Analysis of SC RulingDVSResearchFoundatio
Key Takeaways:
- Facts of the Case
- Issues Raised by the Department
- Contentions of the Revenue and Assessee
- Analysis and Ruling given by the Supreme Court
This document discusses the different income tax return (ITR) forms in India and who can use each form. ITR-1 can be used by individuals with income from salary, one house property, and other sources. ITR-2 can be used by individuals with income from salary, house property, capital gains, and other sources. ITR-4 can be used by individuals with business/profession income. ITR-4S can be used by small businesses and individuals with certain income. ITR-5 is for firms, AOPs, and BOIs. ITR-6 is for companies. ITR-7 is for charitable trusts, political parties, certain institutions, and scientific research universities.
The document discusses key amendments proposed by the Finance Bill of 2012 relating to transfer pricing provisions in India. Some of the key points covered are:
1. It proposes to insert new sections to provide a framework for Advance Pricing Agreements (APAs) between taxpayers and tax authorities to determine appropriate transfer pricing methodology for transactions over a fixed period.
2. It empowers the tax authority to examine international transactions not reported by the taxpayer, even if not referred by the assessing officer.
3. It extends applicability of transfer pricing regulations to certain domestic transactions between related parties.
4. It discusses provisions related to determination of arm's length prices and application of the most appropriate transfer pricing method.
The document is the December 2013 issue of the monthly publication "Missive" from the Knowledge Management Team. It provides an index of topics covered in the issue, including Direct Tax, Transfer Pricing, Service Tax, and others. The main article summarizes several important tax court rulings on issues like TDS credit availability, interest liability for non-residents, capital gains tax rates for non-residents, and whether payments for ship charters constitute royalties. It also briefly summarizes other rulings related to transfer pricing documentation and the application of stamp duty valuation rules.
INCOME TAX – INTERNATIONAL TAXATION
Tax Residency Certificate – DTAA Benefits
The Punjab and Haryana High Court, has held that Tax Residency Certificate issued by a foreign country can be considered valid for the purpose of claiming benefit under the Indo – Mauritius DTAA. The Court reversed the AAR Ruling and relied upon CBDT Circular No. 789 to the effect that certificate of residence issued by the Mauritius Authorities constitute sufficient evidence for residential status.
SARRAF_EXPORT vs. ITO, Ward -2, Churu JODH-2012suresh ojha
The Income Tax Appellate Tribunal was hearing appeals from M/s. Sarraf Export for assessment years 2005-06 and 2006-07 regarding the disallowance of a deduction claimed under Section 80IB of the Income Tax Act for an amount credited as Duty Entitlement Pass Book. The Tribunal found that the Assessing Officer's withdrawal of the deduction, which was initially allowed, under Section 154 was not valid as the issue was debatable given an amendment to Section 28 and relevant case law. Therefore, the Tribunal allowed the appeals and reversed the orders of the Commissioner of Income Tax (Appeals).
Dear Patron
Here we are with the Thirty third successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
Dear Patron,
Here we are with the Thirty forth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
Project Office For Communication Purposes: Will It Constitute A PE?DVSResearchFoundatio
Key Takeaways:
- Background of the Case
- Contentions of the Department and Assessee
- Principles and Precedents Governing the Rule of PE
- Supreme Court's Verdict
Corporate Updates
SEBI
Recording of Non Disposal Undertaking (NDU)in the Depository System
Interest and Dividend information reporting in case of Custodial Accounts-Rule 114G(1)(e) of the Income Tax Rules, 1962
Non-compliance with certain provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009
MCA
MCA comes out with further exemptions to Private Companies and notifies the amendment to the principal notification dated 5th June, 2015
MCA comes out with further exemptions to Government Companies and notifies the amendment to the principal notification dated 5th June, 2015
TAXATION
CBDT provides clarification on Reduced Liability of Tax on complex, building, flat etc. under GST
Company Website:
www.acquisory.com
Dear Members,
We are pleased to present TransPrice Times for the first fortnight of April 2017.
This periodical covers some key aspects from transfer pricing and international taxation, including rulings on foreign tax credit, royalties, benefit test and withholding taxes. For all the innovators, it is important to note the release of Form No. 3CFA for obtaining tax relief under patent box regime under S. 115BBF of the Income-tax Act 1961.
We would be happy to know your suggestions. You can write to us at akshaykenkre@transprice.in
Thank You and Happy Reading!!
- Advocates alone are entitled to practice law and appear before revenue authorities based on recent court rulings.
- The constitution bench of the Supreme Court ruled that chartered accountants and company secretaries cannot represent parties in appeals before the National Tax Tribunal as they are not qualified to handle legal matters.
- Only advocates licensed under the Advocates Act are accountable for professional negligence when practicing law, not chartered accountants or other professionals. Therefore, only advocates should be allowed to appear before income tax authorities on behalf of assessees.
1. Section 14A of the Income Tax Act was introduced to ensure that no deduction is allowed against taxable income for expenditure incurred in earning exempt income.
2. There is an ongoing debate around whether disallowance under section 14A can be made in a year where the assessee has not earned any exempt income. While the tax department and a Special Bench view was that disallowance can be made irrespective of exempt income, various High Courts have held that no disallowance can be made in the absence of exempt income in a year.
3. The current legal position, based on recent High Court rulings, is that no disallowance under section 14A should be made for a year
Consideration of Penalty Proceedings Order for Quantum Assessment: Analysis o...DVSResearchFoundatio
Key Takeaways:
- Facts of the Case
- Rulings by the Lower Authorities for Quantum Assessment
- Penalty Proceedings
- Supreme Court Ruling
- Conclusion and Key Takeaways
This document discusses filing income tax returns in India. It defines what a tax return is and explains the different forms used to file returns based on taxpayer type. Forms include ITR-1 through ITR-7. E-filing of returns is now mandatory for most taxpayers, including companies and individuals with income over Rs. 500,000. While documents don't need to be attached, they should be retained for potential audits. Filing returns on time avoids penalties and potential criminal prosecution for tax evasion. Overall, the document provides an overview of India's income tax return process.
NOTICE INVITING COMMENTS ON THE DRAFT COMPANIES (AUDITOR’S REPORT) ORDER, 2016GAURAV KR SHARMA
The document is a notice from the Ministry of Corporate Affairs in India inviting comments on the draft Companies (Auditor's Report) Order, 2016 by February 23, 2016. It summarizes that a committee was formed to examine matters to be included in auditor's reports under Section 143(11) of the Companies Act, 2013. The draft order has been placed online and public suggestions are invited. Stakeholders can submit comments along with their name, contact details and justification for each comment/suggestion.
Udyam registration is a government registration and certification provided to small and medium businesses in India. It provides a unique registration number and recognition certificate. Obtaining an Udyam registration has several benefits, including exemption from higher interest rates on loans, eligibility for subsidies and incentives. While registration was voluntary initially, the Reserve Bank of India has now made it mandatory for lenders to ensure MSME borrowers have registered. The key document required is the personal Aadhaar number of the proprietor, managing partner, or Karta for sole proprietorships, partnerships and HUFs respectively.
Revised draft of article 12 b income from automated digital servicesDVSResearchFoundatio
Key Takeaways:
Overview of Treaty Provision for Digital Taxation
Clarifications for Source Based Taxation
Amendments in Inclusion and Exclusion List
Way Forward
AUTOMATIC VACATION OF STAY GRANTED BY TRIBUNALDCIT v. PEPSI FOODS LTD. [2021]...DVSResearchFoundatio
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
Validity of Notice Issued for Income Escaping Assessment - Analysis of SC RulingDVSResearchFoundatio
Key Takeaways:
- Facts of the Case
- Issues Raised by the Department
- Contentions of the Revenue and Assessee
- Analysis and Ruling given by the Supreme Court
This document discusses the different income tax return (ITR) forms in India and who can use each form. ITR-1 can be used by individuals with income from salary, one house property, and other sources. ITR-2 can be used by individuals with income from salary, house property, capital gains, and other sources. ITR-4 can be used by individuals with business/profession income. ITR-4S can be used by small businesses and individuals with certain income. ITR-5 is for firms, AOPs, and BOIs. ITR-6 is for companies. ITR-7 is for charitable trusts, political parties, certain institutions, and scientific research universities.
The document discusses key amendments proposed by the Finance Bill of 2012 relating to transfer pricing provisions in India. Some of the key points covered are:
1. It proposes to insert new sections to provide a framework for Advance Pricing Agreements (APAs) between taxpayers and tax authorities to determine appropriate transfer pricing methodology for transactions over a fixed period.
2. It empowers the tax authority to examine international transactions not reported by the taxpayer, even if not referred by the assessing officer.
3. It extends applicability of transfer pricing regulations to certain domestic transactions between related parties.
4. It discusses provisions related to determination of arm's length prices and application of the most appropriate transfer pricing method.
The document is the December 2013 issue of the monthly publication "Missive" from the Knowledge Management Team. It provides an index of topics covered in the issue, including Direct Tax, Transfer Pricing, Service Tax, and others. The main article summarizes several important tax court rulings on issues like TDS credit availability, interest liability for non-residents, capital gains tax rates for non-residents, and whether payments for ship charters constitute royalties. It also briefly summarizes other rulings related to transfer pricing documentation and the application of stamp duty valuation rules.
Arm’s length price (“ALP”) is nothing but a benchmark or a standard price meant for comparison with price charged or paid by assessee in international transactions with its associated enterprises. Since this standard price constitutes basis for making addition in hands of assessee on account of its international transactions with associated enterprises, legislature, in order to iron out creases, inserted proviso to section 92C(2); role of this proviso is to make such standard price or ALP, flexible and not rigid. It has been provided that if price actually charged or paid by assessee falls within plus/minus 5% range of such ALP or standard price, then no addition should be made.
Here we are with the Thirty fifth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
On 16 March 2012, the Honorable Finance Minister of India presented in the Parliament the country's Finance Bill for 2012-13, containing proposals on direct and indirect taxes, and key policy initiatives.
In this regard, with pleasure we are presenting our annual India Budget publication. The publication summarizes the key changes announced by the Finance Minister in his speech.
Most direct tax proposals in the Finance Bill 2012 are proposed to be effective from the financial year commencing on 1 April 2012 unless specified otherwise and indirect tax proposals are effective immediately, unless specified otherwise
We hope you find it an interesting and informative read.
Team SPN
The Finance Bill of 2012 extends transfer pricing regulations to domestic transactions between related parties. This subjects taxpayers claiming tax incentives like SEZ benefits or deductions under sections 80IA/IB/IC to recomputation of income based on fair market value of related party transactions over Rs. 5 crore. While this aims to bring objectivity to related party transactions, it significantly increases compliance burden. The changes take effect from April 2013 and apply to AY 2013-14 onwards, impacting many industries with tax benefits or intra-group transactions.
1) Transfer pricing refers to the prices charged for transactions between related parties, such as multinational businesses. It aims to ensure transactions occur at arm's length prices, similar to unrelated parties.
2) Indian transfer pricing regulations are largely based on OECD guidelines and require extensive documentation and use the arm's length principle. Non-compliance can result in penalties.
3) Transfer pricing methods like comparable uncontrolled price method, resale price method, cost plus method, profit split method, and transactional net margin method are used to determine arm's length prices. Extensive documentation must be maintained.
Newsletter on daily professional updates- 08/04/2020CA PRADEEP GOYAL
“Ideas are knowledge.
When we share knowledge in the written or verbal form, amazing things can happen.”
Here is your Daily dose of professional updates 08.04.2020
1. The document summarizes key updates from the Tax Bulletin of June 2020 regarding direct tax matters in India.
2. It discusses two judicial cases - in the first case, the ITAT held that no disallowance under section 14A can be made if the assessee has not earned any tax-exempt income. In the second case, the ITAT allowed depreciation on the cost of a golf course by considering it as "plant and machinery".
3. It also summarizes three circulars/notifications issued by the CBDT - reduction of TDS/TCS rates and extension of various compliance due dates in light of COVID-19; deferring new procedures for approval/registration
Tax weekly 19 july-2020- N Pahilwani and AssociatesNitin Pahilwani
This document provides a summary of updates related to GST and income tax for the week of July 19th, 2020.
Some key updates include:
1) The CBIC has granted deemed approval for pending GST registration applications and extended the due date for filing GSTR-4 returns for financial year 2019-20 to August 31st, 2020.
2) Several advance rulings addressed the classification and taxation of various supplies such as reimbursements, charges by chit companies, rental properties, free supplies, consultancy services and medicines supplied by hospitals.
3) The new Form 26AS will display additional transaction details to facilitate voluntary tax compliance and ease of income tax filing.
4) The
Newsletter on daily professional updates- 23/01/2020CA PRADEEP GOYAL
I believe that the greatest crime is to learn something that can significantly benefit other people, yet share it with no one
Here is your Daily dose of professional updates 23.01.2020
Newsletter on daily professional updates- 14th September 2019CA PRADEEP GOYAL
This newsletter provides updates on various topics related to business and finance in India. It includes updates on new policies from the Ministry of Finance and CBIC related to the Direct Tax Code, Goods and Services Tax, and income tax. It also summarizes recent court judgements pertaining to GST and income tax. Additionally, it mentions announcements from regulatory bodies like ICAI and ICSI and provides the latest news on the economy, startups, and actions taken by the government to improve ease of doing business.
Newsletter on daily professional updates- 07/02/2020CA PRADEEP GOYAL
Knowledge is a social process.
That means no one person can take responsibility for collective knowledge.
Here is your Daily dose of professional updates 07.02.2020
This document provides a summary of various tax law updates across Income Tax, Service Tax, Excise, Customs and VAT for November 2015 from K. Vaitheeswaran & Co., Advocates and Tax Consultants. Key highlights include the Bangalore Tribunal holding that software development and software product companies cannot be comparable for transfer pricing, the Karnataka High Court allowing foreign tax credit on Section 10A income, and the Supreme Court ruling that landing and parking charges for aircraft are not rent.
This document is a newsletter covering topics related to indirect taxes, direct taxes, corporate laws, insolvency and bankruptcy, and the economy. It provides updates on notifications, circulars, and legal cases. Some key updates include a clarification on the provision allowing unconditional exemption from GST collection, a facility to download details of Form GSTR-9, and guidance on manufacturing operations in special warehouses. Case summaries relate to GST applicability on construction lifts and availability of input tax credit. The newsletter also shares announcements from regulatory bodies and reports on recent legal, policy, and economic developments.
"Humility will teach you knowledge, arrogance will teach you ignorance. If you think you know it all, you have learned nothing" Hi good morning, attached today's newsletter 01.09.2020. great day ahead
TransPrice Times - 16th - 28th February 2018Akshay KENKRE
Dear Members,
We are pleased to present to you ‘TransPrice Times – edition 16th - 28th February 2018’.
This periodical covers key court rulings on Transfer Pricing documentation, attribution of income to a permanent establishment; and advertising, marketing & promotion expenses. Apart from this, recent news relating to Advance Pricing Agreements and OECD updated guidance on Country-by-Country Reporting have been discussed in the periodical.
Thank You and Happy Reading!!
Newsletter on daily professional updates- 07/01/2020CA PRADEEP GOYAL
“If four things are followed –
having a great aim,
acquiring knowledge,
hard work, and
perseverance –
then anything can be achieved.”
Here is your Daily dose of professional updates 07.01.2020
This document provides an overview of Section 14A of the Income Tax Act of 1961 and related issues that arise in its application. Some key points:
- Section 14A allows disallowance of expenditures incurred in relation to income not included in total income (exempt income). Rule 8D provides a formula-based method for determining this disallowed amount.
- There are ongoing legal debates around establishing a clear nexus between exempt income and related expenditures, and whether disallowance can be made if no exempt income was earned in the year.
- Disallowance may not apply if investments were made from interest-free funds or for strategic reasons like acquiring subsidiaries. Treatment of investments held as stock is also unclear
Newsletter on daily professional updates- 07/03/2020CA PRADEEP GOYAL
“Sharing knowledge occurs when people are genuinely interested in helping one another develop new capacities for action;
it is about creating learning processes.”
Here is your Daily dose of professional updates 07.03.2020
The document provides information on the due dates for filing annual GST returns and audit for the 2018-19 financial year. It discusses the applicability of audit requirements based on aggregate turnover, which is the total value of taxable, exempt and export supplies across all registrations with the same PAN. It also summarizes the key parts and tables in form GSTR-9 for filing the annual return and highlights important points about filing, consequences of late or non-filing, and how to analyze the details required in the different sections.
Here we are with the Thirtieth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in thecontents. We would very much
appreciate your feedback which consistently helps us in improving and upgrading the contents.
This document provides an overview of domestic transfer pricing provisions in India. It discusses key concepts like specified domestic transactions (SDT), related parties, applicable sections like 40A(2) and 80A, documentation requirements, and penalties. SDT includes transactions between related parties exceeding INR 50 million annually. The scope was expanded based on a Supreme Court case suggesting potential for tax arbitrage with losses or differential tax rates. Documentation like functional analysis and economic analysis is required to demonstrate arm's length pricing of SDTs. Non-compliance can lead to disallowance of expenses or income adjustments along with penalties.
1) Advance Pricing Agreements (APAs) allow taxpayers to determine transfer pricing methods and arm's length prices for future international transactions in a cooperative manner to avoid potential disputes.
2) Taxpayers can apply unilaterally, bilaterally, or multilaterally for APAs. Bilateral and multilateral APAs require coordination between Indian and foreign tax authorities.
3) Extensive documentation must be provided including financials, functional analyses, critical assumptions, and proposed transfer pricing methodology.
1. Services provided by lawyers are subject to service tax unless exempt.
2. Individual lawyers and law firm partnerships are exempt from service tax if they provide legal services to other lawyers, individuals, or small businesses with under Rs. 10 lakh turnover.
3. If exempt lawyers provide services to large businesses over Rs. 10 lakh turnover, the business must pay the service tax under reverse charge instead of the lawyer.
The document summarizes key changes to India's service tax laws effective July 1, 2012. Key points include:
1) The service tax rate increased from 10% to 12% and the system shifted from a positive to a negative list.
2) Many services were exempted from tax and new sections were introduced to define taxable services and the place of provision.
3) A reverse charge mechanism was introduced for three specified services and the abatement scheme was modified.
4) Procedural amendments included changes to invoicing rules, cenvat credit, and limitations periods.
The document provides an overview of India's transfer pricing legislation:
[1] It outlines the substantive provisions, including that transactions between associated enterprises must be computed using the arm's length principle. It defines key terms like international transaction, associated enterprise, and arm's length price.
[2] It also describes the procedural requirements for documentation and specifies penalties for non-compliance.
[3] Timelines for transfer pricing assessments and orders are included, as well as the roles of the Assessing Officer and Transfer Pricing Officer.
The document discusses advance pricing arrangements (APAs) in India. Key points:
1) APAs allow Indian tax authorities to agree transfer pricing methodologies with taxpayers for international transactions over 5 years, providing certainty.
2) APAs benefit both taxpayers and tax authorities by reducing disputes and compliance costs related to transfer pricing rules.
3) APAs can be unilateral between a taxpayer and India, or bilateral/multilateral also involving foreign tax authorities.
1. The key amendments in the 2012 Finance Act related to service tax include increasing the service tax rate from 10% to 12% plus a 3% cess, bringing in a negative list approach where only specified services will be taxed, and introducing reverse charge mechanisms for certain services.
2. Under the negative list approach, only services specified in the negative list and exempted list will remain outside the scope of service tax. All other services will be taxable unless specifically exempted.
3. The reverse charge mechanism will apply to certain services provided by individuals/firms to corporate entities, as well as services provided by the government and arbitrators. The recipient of these services will now be liable to pay the service
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This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
To download this presentation, visit:
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On episode 272 of the Digital and Social Media Sports Podcast, Neil chatted with Brian Fitzsimmons, Director of Licensing and Business Development for Barstool Sports.
What follows is a collection of snippets from the podcast. To hear the full interview and more, check out the podcast on all podcast platforms and at www.dsmsports.net
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
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This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
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2. Dear Patron
Here we are with the Twenty Sixth successive issue of our
monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking
in the contents. We would very much appreciate your feedback
which consistently helps us in improving and upgrading the
contents.
Thanks and regards,
Knowledge Management Team
Topics Page
No
FEMA 1
Income Tax 2
Transfer Pricing 5
Transactions that made headlines 8
Never hold your head high with pride or ego, even the
winner of a gold medal gets his medal only when he puts
his head down!!!
3. 1 | P a g e
FEMA
A.P. (DIR Series) Circular No. 96 Dated April 5, 2013
Memorandum of Instructions governing money changing activities
The RBI, on a review, has decided that Authorised Money Changers (AMCs) may
sell Indian rupees to foreign tourists /visitors against International Credit Cards
/ International Debit Cards and should take prompt steps to obtain
reimbursement through normal banking channels.
All the other instructions shall remain unchanged.
A.P. (DIR Series) Circular No. 98 April 9, 2013
Trade Credits for Imports into India – Review of all-in-cost ceiling
On a review, the RBI has decided that the all – in – cost ceiling of Trade Credits
for imports into India, as specified in A.P. (DIR Series) Circular No. 28 dated
September 11, 2012 will continue to be applicable till June 30, 2013. All other
aspects of Trade Credit policy remain unchanged.
A.P. (DIR Series) Circular No. 100 April 25, 2013
Overseas Direct Investments – Clarification
The RBI has observed that eligible Indian parties are using overseas direct
investments (ODI) automatic route to set up certain structures facilitating
trading in currencies, securities and commodities. It has come to the notice of
the Reserve Bank that such structures having equity participation of Indian
parties have also started offering financial products linked to Indian Rupee (e.g.
non-deliverable trades involving foreign currency, rupee exchange rates, stock
indices linked to Indian market, etc.).
The RBI has clarified that any overseas entity having equity participation
directly / indirectly shall not offer such products without the specific approval
of the Reserve Bank of India given that currently Indian Rupee is not fully
convertible and such products could have implications for the exchange rate
management of the country. Any incidence of such product facilitation would
be treated as a contravention of the extant FEMA regulations and would
consequently attract action under the relevant provisions of FEMA, 1999.
4. 2 | P a g e
Income Tax
CIT vs. Rajarani Exports Pvt Limited (Calcutta High Court) (ITAT No 49
of 2013) dated 24th April, 2013.
The Calcutta High Court upheld the stand of the Assessee on the grounds that
even if the amount of Commission of Rs 1.28 crores paid to Alia Transportation
were actually kickbacks (bribery) to Iraqi regime, it would not attract
Explanation to s. 37(1). It was pointed out that while the transactions between
Alia and the Iraqi regime may be contrary to the UN sanctions, the transactions
between the Assessee and Alia were not against the UN sanctions and hence
there was no specific violation of law by the Assessee, It was also held that
what the recipient of the payment does is not important because the Assessee
has no control over the matter. Keeping in view of the above facts the High
Court therefore, dismissed the appeal.
Vijay Rameshbhai Gupta vs. ACIT (Gujarat High Court) (17207 of 2012)
dated 4th March 2013.
The Gujarat High Court held that u/s 147 reopening of an assessment has to be
done at the sole discretion, opinion and reasonable belief of the AO and not on
the basis of some other authority. The AO cannot blindly follow the opinion of
an audit authority for the purpose of reopening of any assessment u/s 148.
However, if the AO acts under compulsion of the audit party and not
independently, the action of re-opening would be vitiated. It was clearly
established that the AO was under compulsion from the audit party to issue
notice for reopening the assessment. Hence it was held that the sec 148 notice
issued by the AO had to be squashed.
CIT vs. Jagtar Singh Chawla (P&H High Court) (ITA No 71 of 2012)
dated 20th March, 2013.
The Punjab & Haryana High court on the basis of the rulings in the case of
Fatima Bai & Rajesh Kumar Jalan, upheld the stand of the Assessee & opined
that the benefit of tax exemption on long Term Capital Gain would be available
as long as the taxpayer made the new investment within the time line of filing
tax return u/s 139 of the Act. The same shall be allowed even if any belated
return is filed by the assesse within the time limit. Hence it was held that the
tax payer had acquired the new residential house within the extended period of
filing tax return (here 31.3.2008) i.e.by the end of the assessment year,
relevant to the previous year in which the asset was sold. Therefore the tax
payer is eligible for exemption from tax on LTCG u/s 54F.
5. 3 | P a g e
ITO vs. Right Florists Pvt Ltd (ITAT Kolkata) (ITA No 1336/Kol/2011)
dated 12th April, 2013.
The Tribunal held dismissing the appeal. The tribunal considered the fact u/s
5(2)(b) “Income accrue or arise in India” and held that the servers of Google
and Yahoo are not located in India so there is no PE in India. In the absence of
any business connection the second limit of sec 5(2) (b) ‘’Income deemed to
accrue or arise in India’’ also does not applies. The tribunal considered that the
advertising revenues are not assessable as royalty u/s 9(1) (vi) and the same
does not qualify for Managerial, Consultancy & technical services as these
involves a human element. The Tribunal appreciated that search engines such
as Yahoo and Google provided advertisement services in a purely automated
manner using algorithms and codes without any human intervention. The
services rendered by the search engines are a wholly automated process &
does not involve any human touch at all. Consequently, the receipts in respect
of online advertising on Google and Yahoo cannot be brought to tax in India
under the provisions of the Act or the India US and India Ireland tax treaty.
M/s Shieve Exports v. JCIT [ITA No. 321/Mum/2012] dated 10th April,
2013
On appeal to the Tribunal, it noted that as per the amended provisions of
Section 80-IA (2), an option was given to the Assessee for claiming deduction
for any 10 years out of 15 years in which the business begins to operate. The
Tribunal held that the taxpayer has an option to choose the initial Assessment
Year. Hence u/s 80(IA) (5), only the losses of the year starting from the initial
Assessment Year alone are to be b/f and set off. The Tribunal distinguished the
decision relied on the by the CIT in the case of Goldmine shares & Finance Pvt
Ltd as the same was based on the erstwhile definition of ‘Initial AY’).The
Tribunal set aside the order of the CIT u/s 263 since the order of the AO could
not be termed as erroneous in law.
Notification
C B D T vide. Notification NO.34/2013 [F.NO.142/5/2013-TPL]/SO 1111(E),
dated 1-5-2013 released new Income Tax Return Forms for the AY 13-14 with
few amendments. It shall come into force w.e.f 1.04.2013.Certain important
amendments have also been made in the forms which are as follows:-
6. 4 | P a g e
Return in ITR 1 can’t be filed if Assessee incurs losses under the Head
“Income from Other Sources”
Return in ITR 1 can’t be filed if Assessee claims tax relief or has any
income which is exempt under chapter III.
Return in ITR 4S can’t be filed if Assessee claims tax relief or has any
income which is exempt under chapter III.
E-filing of Audit Reports u/s 44AB in respect of books of accounts, 92E
in respect of international transactions and 115JB in respect of MAT
computation have been made mandatory.
Mandatory E-filing of return if income for every person(not being a
company or a person filing return in ITR 7) whose total income
exceeds Rs. 5,00,000 or Assessee claims tax relief u/s 90, 90A or 91.
Circular
CBDT via Circular No. 04/2013 [F. No. 275/34/2011-IT(B)], dated 17
th
April,
2013 stated that the TDS certificate in Form 16 issued by a Deductor on an
after 1.4.12 shall contain two parts viz. Part A & Part B(Annexure).Part A
contains details of tax deduction and Part B (Annexure) contains details of
income. It further added that Part A of Form 16 shall be issued by all the
deductors, (including Government deductors), only by generating it through
TRACES Portal and after duly authenticating and verifying it. Part B (Annexure)
of Form 16 shall be prepared manually and shall be issued to the deductee
after due authentication and verification along with Part A of Form 16. Form 16
should be issued by 31st May of the financial Year immediately following the
financial year in which income was paid and tax deducted. The Director General
of Income-tax (Systems) shall specify the procedure, formats and standards for
the purpose of download of Part A of Form No. 16 from the TRACES Portal and
shall be responsible for the day-to-day administration in relation to the
procedure, formats and standards for download of Part A of Form No. 16 in
electronic form. It is also clarified that Form 16 issued in accordance with the
circular, shall only be treated as valid compliance.
7. 5 | P a g e
Transfer Pricing
Automatic RBI approval means transaction is at Arm’s Length
Price
ThyssenKrupp Industries India Pvt. Ltd vs. ACIT (ITA NO.
6460/Mum/2012)
The ITAT in its judgment held that when the rate of royalty payment and
fee for drawings etc. has been approved or deemed to have been
approved by the RBI, then such payment has to be considered at ALP.
Scope of +/- 5% tolerance adjustment to ALP explained
IHG IT Services (India) Pvt. Ltd vs. ITO (ITA No. 5890/Del/2010)
It was held that the benefit of tolerance margin would be available only
if the variation is within the tolerance margin. Once the variation
exceeded the tolerance margin, then there would be no benefit even up
to tolerance margin.
Foreign AE cannot be the tested party. TP additions can exceed
overall group profits
Onward Technologies Limited vs. DCIT (ITA No. 7985/Mum/2010)
The Tribunal held that there is no question of substituting the profit
realized by the Indian enterprise from its foreign AE with the profit
realized by the foreign AE from the ultimate customers for the purposes
of determining the ALP of the international transaction of the Indian
enterprise with its foreign AE. Further, the contention of the Assessee
that the authorities cannot go beyond the overall profit of the group of
AEs in determining the ALP of the international transaction is also not
acceptable because it will constitute a new method/ yardstick for
determining the ALP.
8. 6 | P a g e
DRP entitled to enhance by questioning very existence of
transaction
Hamon Shriram Cottrell Pvt. Ltd vs. ITO (ITA No. 7982/Mum/2011)
The Explanation to section 144C(8) has widened the DRP’s power of
enhancement to all the matters arising out of the assessment
proceedings irrespective of whether they were raised or not by the
Assessee. With this amplification of the power, even the matters not
agitated by the Assessee before the DRP can also be considered for the
purposes of enhancement.
If more than one price is determined by the most appropriate
method, the ALP has to be the arithmetical mean of such prices
CIT vs. Mentor Graphics (Noida) Pvt. Ltd (Delhi High Court) (ITA No.
1114/2008)
High Court in its judgment referred that the proviso to section 92C(2) is
explicit that where more than one price is determined by most
appropriate method, the arm’s length price shall be taken to be the
arithmetical mean of such prices. Further, it was held that fresh search
can be conducted by TPO under section 92C (3) which stipulate four
situations where under the AO/ TPO may proceed to determine the ALP
in relation to an international transaction.
Important principles on “turnover filter” & comparison explained
Capgemini India Private Limited vs. ACIT (ITA No. 7861/Mum/2011)
Tribunal held the following:-
A comparison of margin between the Assessee and the comparables
has to be made under identical conditions, for the purpose of
making proper comparison of the margin, onetime cost incurred by
the Assessee has to be excluded.
Only standalone results should be adopted for the purpose of
comparison of margins as the consolidated results which include
profit from different overseas jurisdictions having different
geographical and marketing conditions will not be comparable
The concept of economy of scale is relevant to manufacturing
concerns, which have high fixed assets and, therefore, with the rise
in volume, cost per unit of the product decreases, which is the
reason of increase in margin as scale of operations goes up but the
9. 7 | P a g e
same is not true in case of service companies, which do not require
high fixed assets.
It would not be appropriate to apply turnover filter for the purpose
of comparison of margins. However, for the purpose of comparison,
the turnover would be relevant only from the limited purpose to
ensure that the comparable selected is an established player
capable of executing all types of work as the Assessee is also an
established company in the field.
RBI approval has no relevance on issue of Arm’s Length Price
SKOL Breweries Ltd vs. ACIT (ITAT Mumbai) (ITA No. 6175/Mum/2011)
Tribunal held that Press Note no.9 of 2000 issued by the Ministry of
Commerce and Industry in respect of FDI policy and prescribing the
percentage of royalty to the sales allowed under automatic route
cannot substitute as ALP to be determined under the provisions of the
Act and Rules. FDI policy permitting certain percentage of payment of
royalty is only for remittance of the amount in foreign exchange and
therefore, such permission given in an entirely different context and
purpose cannot be considered as relevant for determination of the ALP
under I. T. Act.
ALP should be determined on segment-wise profits & not
at an entity level. Adjustment cannot be made to the entire entity
turnover/ profits
Sandoz Private Limited vs. DCIT (ITAT Mumbai) (ITA No.
6922/Mum/2012)
The tribunal held that the correct approach under TNMM should be to
determine the ALP of each of the segments by comparing with the
corresponding comparables involved in similar lines of functioning after
proper FAR analysis
ALP of loan transaction has to be determined as per CUP & LIBOR
Cotton Naturals (I) Pvt. Ltd vs. DCIT (ITAT Delhi)(ITA No.
5855/Del/2012)
CUP is the most appropriate method for ascertaining the arm’s length
price of an international transaction of lending money. Where the
transaction is of lending money in foreign currency to its foreign
subsidiaries, the comparable transactions have to be of foreign currency
lent by unrelated parties. In such a situation, domestic prime lending
rate would have no applicability and the international rate fixed being
10. 8 | P a g e
LIBOR should be taken as the benchmark rate for international
transactions.
No notional interest addition for delayed payments by AE
Evonik Degussa India P. Ltd vs. ACIT (ITAT Mumbai) (ITA No.
7653/Mum/2011)
The T.P. adjustment cannot be made on hypothetical and notional basis
until and unless there is some material on record that there has been
under charging of real income. Consequently, an addition an account of
notional interest relating to alleged delayed payment in collection of
receivables from the A.Es is uncalled for as there is no such agreement
whereby interest is to be charged on such a delayed payment.
Transactions that made headlines
Mahindra Holidays acquires 49% stake in Dubai-based Arabian
Dreams Hotel Apartments
TCS to acquire French IT firm Alti for $97.5M
Pearson buys Educomp’s 50% stake in vocational education JV
IndiaCan
Spanish firm Ebro Foods buying Olam’s Indian rice mill unit for
$14.5M
KKR to take controlling stake in Alliance Tire in leveraged buyout
Tata Technologies acquires US-based Cambric for $32.5M
Bharti Airtel to acquire Warid Telecom Uganda