Trade Talks

To understand ‘BEPS 2.0’ first we need to understand what BEPS is. BEPS (Base Erosion and Profit Shifting) is a tax planning strategy that is used by MNCs to shift their profits from high-tax jurisdiction to low-tax or no-tax jurisdiction. Basically, companies erode the tax base through deductible payments such as interest and royalties, which is undoubtedly an unfair practice to local tax authorities. To limit these practices OECD identified 15 action plans in 2015. But a number of problems remain outstanding, particularly regarding digitalization and the digital economy. Hence, on 29th January 2019, OECD came up with new proposals to combat BEPS activities. Which are generally called ‘BEPS 2.0’. This new policy fills the gaps and answers the questions which remained unanswered in ‘BEPS 1.0’. As of now, there are Pillar One and Pillar Two proposals announced under ‘BEPS 2.0’. Pillar One focuses on coherent review in profit allocation, whereas Pillar Two focuses on exercising of prim

I hope, by now, everybody is aware of what is the RoDTEP Scheme. Assuming that let me highlight some practical questions regarding this scheme. On 28th October 2020 under the chair of Mr. G. K. Pillai, the RoDTEP Committee was formed. The main objective of this committee is to determine the ceiling rates of items covered under the scheme. However, the data of chapter 86, 88, and 89 are still pending from the industry's side. It is predicted that the Remission of Duties and Taxes on Exported Products briefly known as the RoDTEP Scheme is likely to be launched under the new Foreign Trade Policy. The scheme seeks to refund currently un-refunded duties/taxes/levies at the local, state, and central level have borne on the exported products. In view of the above, I have jotted down some key questions which need to be answered, 1.  How to segregate the VAT and Excise Duty leviable on petrol & diesel on export and domestic selling products? 2.  How to segregate the electricity duty bet