Other Briefings
India Cuts Rates, Rupee Weakens
Mar. 19 – The central bank of India cut its main interest rate by 25 basis points today after its mid-quarter policy review. This is the second rate reduction this year as India attempts to jumpstart its slowing economy. The Reserve Bank of India (RBI) also said that its benchmark repo rate, the rate used […]
Dividend Distribution Tax in India
By Himanshu Joshi, Accounts Associate, Dezan Shira & Associates Mar. 14 – The provisions of Dividend Distribution Tax (DDT) are contained in section 115-O of the Income Tax Act. A domestic company, in addition to the income tax payable on its total income, shall pay tax on income distributed, declared or paid to it by […]
Presumptive Basis of Taxation for Small Business in India
By Himanshu Joshi, Accounts Associate, Dezan Shira & Associates Mar. 6 – In order to provide small business owners relief from the tedious work of book keeping, auditing and compliance, sections 44AD and 44AE of the Income Tax Act 1961 allows an assessee to determine their income on a presumptive basis. This allows income to […]
Can India Tax Itself to Prosperity?
By Chandrahas Choudhury Mar. 5 – India’s central and state governments are edging closer to an agreement on a design and deadline for the Goods and Services Tax, a comprehensive value-added tax that will replace many smaller taxes and levies and will make India a unified market. The proposed tax reform has been described as […]
Introduction to the Service Tax Partial Reverse Charge Mechanism
By Himanshu Joshi Feb. 28 – A new taxation scheme for the services sector that came into effect on July 1, 2012, states that both the service provider and the recipient of the service must now pay the requisite service taxes. Prior to this, the liability to pay such services tax was only born by […]
Indian Industrial Output Shrinks, WPI Inflation Declines
Feb. 15 – In a worrying development, data from the Central Statistics Office (CSO) has revealed that India’s Index of Industrial Production (IIP) contracted by 0.6 percent in December, largely due to sluggish performance in the manufacturing and mining sectors. Compounding the issue, contraction of industrial production in November has been revised further down, from […]
An Overview of India’s Taxes on Business
Feb. 13 – In this article, we give a brief overview of India’s major taxes and duties on business, including Corporate Income Tax, Dividend Distribution Tax, Minimum Alternative Tax, Value-Added Tax, Central Sales Tax, Goods And Service Tax, Customs Duty, Excise Duty (CENVAT) Service Tax, Capital Gains Tax, Wealth Tax, and Withholding Tax. The central […]
Moody’s: India’s Rating Outlook Stable
Jan. 22 – International credit rating agency Moody’s reaffirmed India’s rating and scored India as a “Baa3,” which indicates investment grade with a stable outlook. This rating is equivalent to Standard and Poor’s (S&P) and Fitch’s “BBB(-)” rating. A downgrade would have pushed India into the so-called “junk” status, which would essentially mean that interest […]
