Taxmann Cross-Border Transactions under Tax Laws and FEMA By R. Subhashree , G. Gokul Kishore Edition March 2025

Taxmann Cross-Border Transactions FEMA By R Subhashree

Taxmann Cross-Border Transactions FEMA By R Subhashree

Description

Cross-border transactions—whether it is the import and export of goods or services—are increasingly complex in today’s globalised marketplace. Multiple laws and regulations come into play, including the Income Tax Act (with transfer pricing, permanent establishment, withholding tax obligations, and the claim of treaty benefits), the Customs Act (covering valuation and exemptions), the IGST Act (dealing with the place of supply, export/import of services, and refunds), and FEMA (along with RBI regulations on foreign exchange and cross-border payments). This book comprehensively brings these threads together in one place. It addresses the interplay between direct and indirect taxes and foreign exchange regulations so businesses and professionals can achieve tax efficiency while remaining compliant. It offers the latest legal amendments, relevant judicial decisions, and practical guidance that simplify each aspect of cross-border taxation and regulatory requirements.

This book is intended for the following audience:

• Tax Professionals & Chartered Accountants – Practitioners seeking a unified source for both direct and indirect tax implications in cross-border transactions
• Legal Practitioners & In-house Counsel – Attorneys handling cross-border trade, dispute resolution, and corporate law aspects, needing clarity on Customs, GST (IGST), Income Tax, and FEMA matters
• Industry Professionals & CFOs – Corporate decision-makers and finance teams involved in international operations, responsible for compliance and strategic tax planning
• Regulators & Adjudicating Officers – Government officers dealing with assessments and appellate proceedings in cross-border tax matters
• Academics & Students – Researchers and students pursuing specialised courses in international taxation or customs law, looking for detailed coverage and interpretations of evolving legislation

The Present Publication is the 5^th Edition | 2025, amended by the Finance Act 2025. This book is authored by Dr Gokul Kishore & R. Subhashree, with the following noteworthy features:

• [All-in-one Reference] Addresses Income Tax, Customs, IGST, and FEMA/RBI regulations side-by-side for cross-border transactions involving goods or services
• [Practical Insights] Provides industry-focused explanations on valuation, tax residency, PE creation, transfer pricing, withholding tax obligations, and foreign tax credits
• [Legal Clarity] Discusses complex concepts like Permanent Establishment, Double Taxation Avoidance Agreements (DTAAs), Customs Valuation Rules, and GST place-of-supply with updated Finance Act 2025 amendments
• [Customs & Export Promotion] Explains notifications, exemptions, and schemes under the new Foreign Trade Policy
• [FEMA & RBI Regulations] Offers a dedicated chapter on cross-border currency flows, setting up branch/liaison offices in India, and compliance with RBI’s Master Directions
• [Dispute Resolution Mechanisms] Clarifies litigation and alternative dispute resolution under direct tax laws, customs law, GST, and FEMA
• [Case Laws & Judicial Interpretations] Incorporates over 400 relevant cases, departmental circulars, and references
• [Authors’ Credentials]
• Dr G. Gokul Kishore has 30+ years of experience in Indirect Taxes, including in the Central Excise Department and a Tier-1 law firm. He has published over 400 articles and regularly conducts training for tax officers and industry
• R. Subhashree is an Advocate specialising in Income Tax, focusing on domestic and international taxation. She has 17 years of writing experience and has advised extensively on DTAAs, FTS, and royalty

The coverage of the book is as follows:

• Customs Valuation
• Detailed commentary on Section 14, Valuation Rules, under-valuation vs. over-valuation risks, and potential adjustments when buyer-seller are related
• Transfer Pricing
• Arm’s length principle, selection of comparables, various methods for determining ALP, marketing intangibles, secondary adjustments, and inter-company cost-sharing
• Permanent Establishment & DTAAs
• Conditions triggering PE, attribution of profits, complexities of ‘agency PE,’ construction PE, and using DTAAs to optimise and manage tax exposure
• Withholding Obligations, Foreign Tax Credit & Tax Residency
• TDS complexities under cross-border scenarios, the interplay of treaties, claiming FTC, and residency rules
• Royalty & Fees for Technical Services (FTS)
• Scope of definitions, typical controversies, and judicial rulings
• Import & Export under IGST Act
• Place of supply rules, export of services, zero-rated supply, inter-branch transactions, and refund procedures
• Customs Exemptions & Export Promotion Schemes
• Comprehensive guidance on notifications, general and specific exemptions, duty drawbacks, Advance Authorizations, EPCG, and other incentives
• FEMA & RBI Regulations
• Setting up and operating liaison/branch offices in India, ODI/FDI regulations, receipt of export proceeds, repatriation, and cross-border structuring from a regulatory viewpoint
• Dispute Resolution
• Pathways to litigation under Customs, GST, and Income Tax, appellate mechanisms, and alternative dispute resolution under direct tax law

The structure of the book is as follows:

• Chapter 1 | Customs Valuation – Concepts, rules, and case analyses on valuation of imports and exports
• Chapter 2 | Transfer Pricing – International transactions, associated enterprises, ALP methods, controversies, and best practices
• Chapter 3 | Permanent Establishment & DTAAs – Conceptual framework of PE, types of PEs, DTAA provisions, and profit attribution
• Chapter 4 | Withholding & Other Incomes – Royalty, FTS, interest, dividend, foreign tax credit, tax residency, TDS obligations
• Chapter 5 | Import & Export under IGST Act – Place of supply rules, zero-rated supply, refunds, and compliance
• Chapter 6 | Customs Exemptions & FTP Schemes – Comprehensive coverage of statutory exemptions, Foreign Trade Policy benefits, and procedures
• Chapter 7 | Export & Import under FEMA & RBI Regulations – Regulatory framework for cross-border payments and establishment of foreign entities in India
• Chapter 8 | Dispute Resolution – Statutory dispute resolution processes and forums for direct/indirect taxes, plus ADR in income tax
• Subject Index & Case Index – Quick references for rulings and topics, ensuring easy navigation

About the author

R. Subhashree

Subhashree is an Advocate practising direct tax and indirect tax laws. Before starting an independent practice, as part of Lakshmikumaran & Sridharan, she had represented the industry before the ITAT and appellate authorities.

She focuses on domestic and international taxation and has advised the industry on structuring, residency, withholding obligations, FTS, royalty and applicability of DTAA. She is a regular writer on direct tax changes and major rulings for the past 13 years. Her articles have been published in Financial Express, Taxmann, etc.

G. Gokul Kishore

Dr. G. Gokul Kishore is an indirect tax expert with 25+ years of experience. He is an Advocate and advises and represents the industry on GST and Customs Laws.

During his association with Tier-I law firm Lakshmikumaran & Sridharan, he had guided both large and mid-size companies and service providers through legal opinions, tax compliance reviews, input tax credit reviews, GST implementation measures, pre-incorporation indirect tax advisory, exit strategy from an indirect tax perspective and anti-profiteering investigations and proceedings. He has assisted members of the industry from various sectors like iron and steel, FMCG, cement, electrical appliances, machinery, pharma, auto, project engineering, travel, real estate and education.

Dr. Kishore has published over 230 articles, including research papers in print and online media like Financial Express, Taxmann, Excise Law Times, etc. He obtained his doctorate in indirect taxation.