Category: India

M. Venkaiah Naidu calls upon all nations to join hands for automatic exchange of information on black money

The Vice President of India, M. Venkaiah Naidu has called upon all nations to join hands in ensuring automatic exchange of information on black money and speedy extradition of economic fugitives. Shri Naidu asserted that all countries must speak with one voice to eliminate terror and economic frauds. “As we… – Continue reading

Mauritius rule changes may hit offshore funds

Funds may lose tax benefit after rule amendment.  Mumbai: The Mauritius government’s proposal to amend tax residency rules for companies is giving jitters to foreign funds operating from the tax haven. Mauritius has recently announced that it is amending rules for determining tax residency for companies so that a company… – Continue reading

Foreign Exchange Management Accounts: FBR for replicating Indian model

ISLAMABAD: Terming Indian model as good to replicate Foreign Exchange Management Accounts (FEMA) in case of Pakistan, Chairman FBR Shabbar Zaidi said that $40 billion was remitted out from Pakistan, so there was need to bring changes in existing Pakistani laws related to management of foreign exchange. He pointed out… – Continue reading

India: Government Of India Ratifies MLI – Bringing India On The Cusp Of A New International Tax Regime

The Government of India (Union Cabinet) has approved the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) and India's final position to the same. ... - Continue reading

India ratifies multilateral convention to curb abuse of tax treaties

The union cabinet, chaired by Prime Minister Narendra Modi on Wednesday approved the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The Convention will modify India’s treaties in order to curb revenue loss through treaty abuse and base erosion… – Continue reading

India: Split Residency – ITAT Upholds The Taxpayer’s Claim For Treaty Exemption, Applies Centre Of Vital Interest Test

Dual Residency gets attracted when an expat in the year of move qualifies as a resident of the host country (i.e., the country in which he is deputed) as well as home country (i.e., the country of his residence). On account of dual residency, an expat can be doubly taxed… – Continue reading

India: Bombay High Court Quashes 197 Order Rejecting Mauritius Tax Treaty Benefits

High Court sets aside section 197 order due to absence of prima facie evidence of tax avoidance Rejects factors such as lack of business activities and administrative expenses as conclusive of sham transactions Holds that a detailed inquiry can be conducted during normal assessment Directs refund of withheld tax subject… – Continue reading

Revised tax treaties usher in a new era in investment, taxation

Policy tweaks  curb evasion,  show  India  can woo investments without  sops Singapore, another major FDI contributor to India, too, enjoyed the same tax sops under a similar treaty with India NEW DELHI: For about a decade-and-a-half, revenue authorities examining foreign investment proposals received by the erstwhile Foreign Investment Promotion Board… – Continue reading

Delta Corp. sees shares sell-off over possible government action

India gaming giant Delta Corp. saw a substantial selloff if its shares last week after reports started surfacing that the country’s government could be investigating the company for possible tax evasion. Only on Friday, the amount of shares dropped 12% as shareholders became nervous and started looking at ways to… – Continue reading

India notifies pact with US to check tax evasion by MNCs

As per the agreement, it is intended to provide relevant and reliable information to perform an efficient and robust transfer pricing risk assessment analysis. Aimed at providing relief to subsidiaries of US multinationals and ensuring a check on cross-border tax evasion, India has notified the inter-governmental agreement with the United… – Continue reading

MP CM’s nephew under fire for tax evasion

According to sources, the raids were conducted at Mr Nath’s nephew Ratul Puri’s company, Hindustan Powerprojects Pvt Ltd on April 7. New Delhi: The income tax department has detected tax evasion of more than Rs 1,350 crore during search and seizure operations conducted against Hindustan Powerprojects, a company owned by… – Continue reading

Income Tax Dept cannot probe Foreign Assets of Assessee after Six Years: Delhi High Court [Read Judgment]

The Delhi High Court, in its recent decision, quashed an order of the Income Tax department questioning the overseas earnings and assets prior to March 31, 2005. The earnings included money in tax-haven banks, overseas properties and interests in offshore trusts and applies to non-resident Indians as well. The assessee,… – Continue reading

Taxman starts questioning & issuing notices to BPOs

One month after the Authority of Advance Ruling (AAR) ruled that back office support services qualify as “intermediary” support services and not exports, officers of the indirect tax department have started issuing preliminary notices to captive units of multinationals and Indian companies exporting offshore support services. AAR’s directive meant several… – Continue reading

Avoidance of double taxation treaty between India, HKSAR comes into effect

A double taxation avoidance agreement between India and Hong Kong has come into effect from Friday, which officials say would stimulate more the two-way flow of investments and help curb fiscal evasion with respect to taxes on income. The agreement between India and the Hong Kong Special Administrative Region (HKSAR)… – Continue reading

India-China amends double taxation avoidance treaty

New Delhi, Nov 26 India and China have amended the bilateral tax treaty which will help prevent tax evasion by allowing exchange of information, the Finance Ministry said Monday. The Government of India and the People’s Republic of China have signed a protocol on November 26, 2018, to amend the… – Continue reading

A tax ruling just opened the Pandora’s box for India’s back offices

MUMBAI: Are India-based back offices of multinationals merely brokers? And, are Indian companies providing services to foreign firms just commission agents? Going by the tax department’s definition, it appears that they are so — and not exporters. Several back offices at multinationals now face 18% Goods and Services Tax (GST)… – Continue reading

Tax Planning for NRIs Returning to India

In general, investment and tax provisions relating to non-resident Indians (NRIs) returning to live in India are fairly generous. However, NRIs must carefully plan their return to India to ensure there are no surprises with respect to managing their overseas income and investments. In this article, we examine some of… – Continue reading

Rs 3,400-crore tax evasion’: I-T probing over 21,000 entities

The probe follows an investigation by the Securities and Exchange Board of India (Sebi) on 14,720 entities in a case related to alleged trading irregularities in that segment. THE INCOME-TAX (I-T) Department is probing at least 21,900 entities that have traded through 193 brokers and allegedly evaded taxes of about… – Continue reading

With a view to curb black money, India signs pact with Liechtenstein for account information swap

After Switzerland, Liechtenstein has also signed an agreement with India for Automatic Exchange of Financial Account Information, official sources here said. The agreement was signed in Vaduz on October 11. India sees Liechtenstein as an important partner in fighting overseas black money and is hoping the agreement will help it… – Continue reading

NRIs can be appointed as Trustees of valid Indian Trusts under Income Tax Act: ITAT [Read Order]

The New Delhi bench of Income Tax Appellate Tribunal (ITAT) in Global Academy of Emergency Medicine versus CIT(E), held that under the Income Tax Act appointing of NRIs as trustees of valid Indian trusts are permissible. The sole issue in the instant case was CIT (E) held that the owner… – Continue reading

India planning to launch its own cryptocurrency?

In the wake of blowing hot and cool on bitcoin, the government of India is thinking about drawing out its very own cryptocurrency. A board comprised by India’s finance ministry suggested that the nation launch a government-backed cryptocurrency. “We are assessing the government-backed cryptocurrency and crypto-token,” said a senior government… – Continue reading

Defying US, India inks $5 bn deal with Russia

NEW DELHI: India and Russia are exploring the option of trading in their local currencies and looking at signing agreements on investment protection and avoidance of double taxation, Russia’s minister for economic development Maxim Oreshkin said on Friday. The commerce ministry is considering the feasibility of a renminbi-rupee trade with… – Continue reading

Indian high commission seeks solution to tax-related problems

Indian high commission in Dhaka has requested different Bangladesh government agencies including National Board of Revenue to solve a number of tax-related ‘problems’ Indian chief executive officers-managed multinational companies are facing in the country. In a letter to NBR sent on September 10, the high commission said that Indian CEOs… – Continue reading