India and US Foreign Account Tax Compliance Act (FATCA) would be signed a new information sharing agreement in New Delhi on tax evasions, reports Customs Today. The US has given India time till September 30 to put in place a framework to track down the assets that nationals of each… – Continue reading
Subramaniam Swamy has been a strong advocate for abolishing income tax. There is a basic dichotomy in the taxation structure in India — many corporates pay taxes that are a fraction of what they should be paying while the salaried class get deductions that can’t really be called deductions due… – Continue reading
Ramakant Jha, the managing director and group chief executive of Gujarat International Finance Tec-City (Gift), talks about the central business district, which is still being developed. Why is Gujarat the right destination for such a project? When people us, “why Gujarat?”, we ask them, “why not Gujarat?” Gujarat has had… – Continue reading
MUMBAI: Next time, you will think twice before opening a bank account in Jersey or buying a property in London — even if the transaction is legitimate. Everyone having accounts with offshore banks, or owning properties or stocks abroad will be soon asked a string of questions by the tax… – Continue reading
Discuss issues related to applicability of minimum alternate tax and permanent establishment Foreign Investor on Saturday raised several tax-related issues with Finance Minister Arun Jaitley at a meeting organised by the National Stock Exchange (NSE). According to sources, issues regarding applicability of minimum alternate tax (MAT) and permanent establishment (PEs)… – Continue reading
NEW DELHI: Indian Central Board of Direct Taxes (CBDT) will outline rules to give relief on foreign pre-paid taxes. Currently, the income tax law does not provide the manner for granting credit of taxes paid in any country outside. Now, this situation is sought to be addressed with the latest… – Continue reading
NEW DELHI: Indian Central Board of Direct Taxes (CBDT) will outline rules to give relief on foreign pre-paid taxes. Currently, the income tax law does not provide the manner for granting credit of taxes paid in any country outside. Now, this situation is sought to be addressed with the latest… – Continue reading
Mr R S Sodhi, the Managing Director of GCMMF which owns the famed brand Amul has given his take on the Union Budget on our request. We produce the same verbatim-Editor For Cooperative Sector, the budget will have a mixed effect. Budget is good for those cooperatives who are in… – Continue reading
India has made a major breakthrough with Swiss tax authorities, who have agreed to provide information in respect of cases independently investigated by IT department whereas first round of talks have reportedly taken place between Pakistan and Swiss government on revision of Convention for the Avoidance of Double Taxation agreement…. – Continue reading
THIRUVANANTHAPURAM, MARCH 4: The taxman has taken a headlong plunge into an alphabetic soup to comply/align with emerging tax and jurisdictional requirements, domestic and foreign, of which is GST is only one. Advance Pricing Agreements (APAs); General Anti-Avoidance Rules (GAAR); BEPS (Base Erosion and Profit Sharing); and POEM (Place… – Continue reading
NEW DELHI: India will seek to apply its proposed law on black money held abroad fairly, making sure that its stringent provisions aren’t used to harass students, research scholars and professionals going overseas for short stints. “There will be suitable safeguards,” Revenue Secretary Shaktikanta Das told ET in an interview…. – Continue reading
NEW DELHI, MARCH 3: The Central Board of Direct Taxes (CBDT) is open to “re-look” at the conditions placed in this year’s Budget for encouraging fund managers of offshore funds to relocate to India, a top official said. “In our view the conditions are not onerous. But if you (fund… – Continue reading
NEW DELHI: Opposition today came down heavily on the government accusing it of remaining silent over cases of communal violence and failing on national security front and stopping transfer of public money to foreign telecom firms Main opposition Congress party also charged the BJP-led dispenation with failing to make sufficient… – Continue reading
Global entities liable to pay tax on yearly income if their place of effective management is India even for a single day Shell companies based abroad would have to pay taxes on their global income for a year if their place of effective management (POEM) is India even for a… – Continue reading
Foreign subsidiaries may now have to pay tax both in India and the country of their operations At present, a company incorporated outside India is considered a tax resident only if the control and management of its affairs is situated wholly in India. Photo: Pradeep Gaur/Mint New Delhi: A budget… – Continue reading
New Delhi: The announcement by Finance Minister Arun Jaitley categorising tax evasion in relation to holding of illegal foreign assets as a “predicate offence” under anti-money laundering laws has, for the first time, made concealment of income a criminal offence in India. At present, tax evasion is a civil offence… – Continue reading
GUEST COLUMN- Dinesh Agarwal & Amit Poddar The Finance Act, 2012, had introduced the provisions for specified domestic transactions (SDT), extending the laws of transfer pricing to domestic transactions. One of the criteria for applicability of domestic transfer pricing was that the aggregate value of domestic transactions should be at… – Continue reading
Government proposes to come out with a modified General Anti-Avoidance Rules by incorporating provisions of the OECD’s BEPS project so as to effectively deal with the problem of tax avoidance by MNCs. The BEPS initiative aims to ensure that taxes are paid where profits are made. Multinational companies use a… – Continue reading
British mobile giant Vodafone hasn’t been bailed out, with Finance Minister Arun Jaitley maintaining status quo on taxing past offshore deals. However, foreign investors can draw comfort as tax will be charged in India only on certain offshore deals where the underlying asset and the value derived thereon are in… – Continue reading
As recommended by Tax Administration Reforms Commission (TARC) under Parthasarathi Shome, for taxation, the appellate functions must be housed separately from the field functions, in order to have fair and judicious orders passed. Indian Revenue should be divided into two distinct sets—the operational side and the technical/adjudication side. The quasi-judicial… – Continue reading
The income tax department has scaled down its estimate of income suppression by multinational corporations in India in the 2014-15 audit of intra-group cross-border transactions to Rs 47,000 crore, a steep 22% decline from the extra taxable income the department had attributed to the firms in the previous audit. The… – Continue reading
BANCO DEAR: NZ Superannuation Fund was joined with finance high-fliers in the loan to collapsed Portuguese bank. An Indian billionaire and a hedge fund run by former Goldman Sachs executives were among coinvestors with the Super Fund in a $1 billion loan to shaky Portuguese bank Banco Espirito Santo. The… – Continue reading
Pharmaceutical companies want the finance minister to increase tax concessions across the board as also bring in more clarity on amendment to the rollback of advance pricing agreements (APA), applicability of roll back benefit, impact on on-going assessment, applicability of roll back provisions on bilateral APAs etc. In a pre-budget… – Continue reading
KPMG in India through its survey, has tried to understand the expectations of India Inc. on various parameters such as policy reforms, clarity on indirect transfer tax provisions, applicability of MAT on foreign companies, amendment in the tax regime for REITs/ InvITs, deductions allowed to individuals, etc. Over 200 senior… – Continue reading
Mr. Akhilesh Ranjan, Joint Secretary Ministry of Finance, and also Competent Authority for the Government of India, spoke this past week at the Pacific Rim Tax Institute, February 19-20, reaffirming India’s commitment to a new non-adversarial tax regime to encourage foreign investment and fair treatment of taxpayers. Mr. Ranjan’s appointment,… – Continue reading
The Bombay High Court, in its landmark judgments in the cases of Vodafone India and Shell India, held that issue of shares, being a capital transaction, does not attract transfer pricing (TP) provisions under the Indian income tax law. The court observed that investment in shares does not fall within… – Continue reading
As for the central message that an NRI/PIO want to hear from Modi’s most important budget of his term can be best summed by what he said during an event in central park New York “May the force be with you “Veni Vidi Vici!” he came, he saw and he… – Continue reading
Close to three dozen private equity firms which used investment entities based in Mauritius to route money into Indian portfolio companies have received income-tax notices for payment of Minimum Alternate Tax (MAT) on the capital gains accrued to them for sale of such shares, according to Business Standard. MAT is… – Continue reading
The government is set to make changes in the income tax rules to seek overseas operational details of multinational businesses that have a turnover of over R5,000 crore in India in order to decide which companies should be audited for income suppression, reports Gireesh Chandra Prasad in New Delhi. The… – Continue reading
The government has been able to instil a positive sentiment in the country. Various policy initiatives like Make-in-India, aimed to make India a manufacturing hub, and the Clean India campaign; updating age-old laws and tweaking the Goods and Services Tax to a more acceptable form, introducing greater clarity in the… – Continue reading
Bahrain and India have signed agreements to increase co-operation in the areas of education, investment, defence and other sectors. It took place during the first meeting of the India-Bahrain High Joint Commission (HJC) in New Delhi, said a report in the Gulf Daily News (GDN), our sister publication. The Bahrain… – Continue reading
Tax collections, so maintains the Federal Minister for Finance Ishaq Dar, have improved significantly and he cited a healthy growth rate of around 13 percent in one of his recent press conferences. Sources within the Ministry of Finance, however, revealed to Business Recorder, but on condition of anonymity that the… – Continue reading
MUMBAI: The Securities and Exchange Board of India has banned 33 entities for allegedly misusing the stock exchange system to generate fictitious long-term capital gains of over Rs 1,800 crore and for converting their unaccounted income into legal money. Sebi said Kamalakshi Finance Corp (KFCL) made preferential shares to connected… – Continue reading
Certainty and reduced litigation on transfer pricing (TP) issues will be the cornerstone of creating a non-adversarial tax regime in India. The authors believe that Budget 2015 ought to lay out a roadmap to achieve this goal for TP issues – Recent positive progress on the Advance Pricing Agreement (APA)… – Continue reading
The economic downturn across the world and rising public debt seems to have led various governments, globally, to focus on curbing erosion of the tax base by shifting profits to overseas jurisdictions. Several revenue authorities, globally, were of the view that companies have structured their intra-group contractual arrangements in a… – Continue reading
India’s decision to negotiate bilateral advance pricing agreements (APAs) with the U.S. is a welcome move. Prospectively, negotiations will increase certainty and uniformity in the application of India’s transfer pricing laws to related-party transactions carried out by U.S. multinational corporations (MNCs). In this article, we discuss some of the important… – Continue reading
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) on Thursday reiterated its allegations of money laundering against Finance Minister Ishaq Dar, saying he has transferred $4 million to his son in Dubai to avoid taxes. “The biggest investor in this case is our very own Finance Minister Ishaq Dar. He has on record… – Continue reading
The Government of India brought in a retrospective amendment in 2012 to nullify the Supreme Court judgement in the case of Vodafone International Holdings B.V. to tax capital gains arising from transfer of shares or interest in a foreign company deriving its value ‘substantially’ from Indian assets. However, the Government… – Continue reading
The entire IT ecosystem must be tuned to ensure that it is easier to do business in India. Many countries are now attracting technology start-ups that are working on the next big thing. India must not lose out in this race. India has been facing a flight of talent with… – Continue reading
“I hope something more substantial is set aside towards ITIR and also the Pharma city. We (Hyderabad) are positioned very well for the Make-in-India initiative given we have a strong defense/aerospace presence and also pharma/life sciences. I believe some incentives to boost these segments and local manufacturing would help the… – Continue reading
Mumbai: As a probe continues into the misuse of stock markets for evading taxes and laundering black money, 4-5 cartels of market operators have been identified for making illicit gains or showing fictional losses of several thousands of crores of rupees over last 2-3 years. According to sources, both ‘bull’… – Continue reading
This Tax Alert by EY summarizes a recent ruling of the Mumbai Income Tax Appellate Tribunal (Tribunal) in the case of Swiss Re-Insurance Company Ltd. (Taxpayer). The Tribunal ruled that the Taxpayer’s wholly-owned Indian subsidiary (ICo) engaged in carrying out risk assessment services, marketing insurance and providing administrative support for… – Continue reading
Last month, President Obama traveled to India where he famously befriended Narendra Modi and others. There, he heralded a new era of joint cooperation on many fronts, including the exchange of offshore account information. Last week, US Treasury Secretary, Jacob Lew was in India to follow up and meet with… – Continue reading
LONDON: HSBC’s Indian banking unit is at the heart of fresh revelations around tax evasion, days after a global expose showed tax dodging through accounts in the British major’s Swiss banking unit, a media report said today. It is alleged that representatives of HSBC India, which has employees based in… – Continue reading
Identities of Ghanaians said to have stashed $89million in a Swiss bank to evade tax could become public, Kweku Baako, Managing editor of New Crusading Guide newspaper has said. According to the veteran journalist, there has been some contact made with the International Consortium of Investigative Journalists who are in… – Continue reading
The automobile industry is very important for the Indian economy, given its significant contribution to the national GDP, and the employment it generates directly and indirectly. After two years of sluggish growth, the fortunes of the industry seem to be changing. The latest forecast shows growth in almost all the… – Continue reading
Budget should issue a) rules for announcements that were made in the budget in July 2014, (b) clarifications and guidance on matters that were at the centre of controversy during the past few years like equity infusion, valuations, etc. and (c) tax administrations, infrastructure and approach. The new government in… – Continue reading
NEW DELHI: Committing to boost trade ties, India and the US today resolved to enhance cooperation, remove obstacles to investment flows and work towards early adoption of FATCA to facilitate automatic flow of tax information. “We are committed to share our experiences in tackling offshore tax evasion and avoidance. We… – Continue reading
NEW DELHI: India and the US on Thursday committed to take the renewed India-US partnership forward through “shared effort and progress for all” when Finance Minister Arun Jaitley and Jacob J. Lew, US Secretary of the Treasury, met in the Capital for the Fifth Annual India-US Economic and Financial Partnership…. – Continue reading
New Delhi: Top officials from IT, BPO and e-commerce sectors have requested Finance Minister Arun Jaitley to address certain issues related to taxation in the Budget for fiscal year 2015-16, and provide incentives for setting up data centres in the country. They also suggested that the minister look at ways… – Continue reading
