Monthly Tax Bulletin: August 2026

Key highlights:

Direct taxes:

• The OECD has published Taxation Working Paper No. 77 - “MNE Responses to the Global Minimum Tax”.
• The CBDT issues FAQs related to the transition provisions under Section 536 of the Income Tax Act 2025.
• The CBDT authorises the uploading of information received under the AEOI framework under the respective DTAAs.
• India-Mauritius Tax Treaty: Mauritius clears enabling regulations for the 2024 Protocol.

Transfer pricing:

• The HC notes that subsequent communication of a DIN through intimation does not invalidate orders, constitutes compliance with Circular 19/2019.
• Deletes penalty on goodwill accounting entry, rules transaction not reportable as an international transaction.
• Considering the assessee's reliance on documents filed before foreign tax authorities, remits the TP issues for fresh adjudication.
• The ITAT Bangalore holds extraordinary expenditure incurred during the COVID-19 pandemic as non-operating.

FEMA:

• The RBI liberalises the framework for Special Non-Resident Rupee (SNRR).
• The government allows the FDI in an inventory-based model for e-commerce exports.

Indirect taxes:

• The SC affirms that the supplier’s payment of tax to the government is a mandatory condition for the ITC entitlement.
• Online gaming companies seek a review of the SC’s ruling upholding 28% GST on the full face value of bets.
• The SC dismisses the Revenue’s SLP against the HC’s judgement on the assignment of leasehold rights in land.
• The SC holds the CNG-dispensing arrangement between MGL and oil marketing companies to be an agency relationship; holds that the commission earned is liable to service tax.
• 10% pre-deposit inapplicable for penalty-only appeals arising from an SCN issued before 1 October 2025 – Delhi HC.
• The CBIC exempts the Customs Duty on key electronics and battery manufacturing inputs.

Monthly Tax Bulletin: August 2026

The August 2026 edition of the Grant Thornton Bharat Monthly Tax Bulletin provides a concise summary of key developments in direct taxes, FEMA, transfer pricing, and indirect taxes for July 2026.

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