Other Briefings
India’s New Direct Tax Code
Jun. 25 – The Indian government has proposed significant changes to its tax code, which is to be amended by the revised discussion paper due to be submitted, following extensive consultations, to Parliament soon. In this article we discuss the background to the tax code, the proposed changes and what they mean for the India-based […]
India to Exempt Tax on Selected Services Starting July 1
Jun. 25 – India will exempt tax on services that deal with low-cost housing construction, power distribution, services within ports and airports, selected tournaments and championships, foreign travelers in transit and those flying to and from the northeast starting July 1. “Repair of ships or boats or vessels belonging to the Government of India, including […]
Double Tax Avoidance Agreements Still Applicable Despite New Tax Code
Jun. 23 – The revised discussion paper on India’s new Direct Tax Code has assured that Double Tax Avoidance Agreements (DTAA) made with other countries will not be annulled when the new tax code is implemented. Specifically the paper says that, “The current provisions of the Income-tax Act provide that between the domestic law and […]
Residency Definition Clarified in Latest Discussion Paper on DTC
Jun. 18 – The newest version of the discussion paper on the Direct Tax Code has clarified the definition of residence for foreign companies in India assuaging fears that companies may be inevitably taxed on their global income. The paper offers a clearer definition of residency specifying that a foreign company will be considered an […]
Minimum Alternate Tax May Be Credited Against Corporate Tax
Jun. 18 – India may allow companies in all sectors paying the minimum alternate tax (MAT) to credit it against corporate tax that can be carried forward for 10 years according to a revised discussion paper released on Tuesday. Currently, MAT is levied at 19.93 percent of book profits. The long awaited Direct Tax Code […]
Revised Draft DTC: Capital Gains of FIIs Are Not Business Income
Jun. 16 – There is a major change to the taxing of foreign institutional investments (FIIs) in the revised direct taxes code bill being proposed by the Indian government. Under the new revised bill, capital gains of FIIs will not be treated as business income and hence not subjected to TDS. Instead they will be […]
India to Add Eight Overseas Tax Units to Fight Tax Evasion
Jun. 10 – India wants to open overseas tax units in Britain, Cyprus, France, Germany, Japan, Netherlands, United Arab Emirates, and the United States to fight tax evasion. The international trade of goods is making tax computation more complicated for both businesses and government. India is implementing measures that will provide transparency when it comes […]
Indian Government Amends Taxes Deducted at Source Rules
Jun. 9 – India’s Central Board of Direct Taxes (CBDT) recently updated regulations relating to the mode of payment, certificate issuance, and provision date for taxes deducted at source (TDS) in Notification No. 41/2010; SO No. 1261(E) dated May 31. The amended rules are backdated so as to begin April 1, 2010. Under the updated […]
