Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: form 3cd :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: due date for vat payment :: TDS :: VAT Audit :: cpt
News Headlines »
 TDS on rent and other tax tasks to complete before March 31
 5 income tax changes which will come into effect from April 1, 2018
 Why you shouldn't be a last-minute tax filer
 How to calculate income tax for this assessment year on Moneycontrol
 6 Tax notices you may get and how to cope with them Income Tax Notice
 Deadline to pay advance tax ends tomorrow: Here is a step-by-step guide
  Central Goods and Services Tax (Second Amendment) Rules, 2018
 Income Tax Return Filing Deadline: Waiver On LTCG Tax To End On 31 March. Details Here
 Income tax returns (ITR) filing: Top mistakes that can be very costly
 Income Tax Return (ITR) filing: 6 last-minute things you can still do to save tax for FY17-18
 How to file Income Tax Returns online in 5 simple steps

MNCs get tax breather on asset sale
October, 05th 2007
Foreign companies selling assets in India could end up enjoying a concessional rate of capital gains tax of 10% even if these companies enjoy the foreign currency fluctuation benefit.

This follows the ruling by the Authority for Advance Rulings (AAR) in the Timken (France) case, where it has held that foreign companies will be eligible for concessional tax rate of 10% on capital gains made on any asset purchased in foreign currency.

Normally, companies have to pay a capital gains tax of 20% if they opt for the forex cover, which protects them from the volatility of the currency.

Timken SAS of France which sold off its shares, including bonus shares, in NRB, a listed company in the Indian bourses, had sought the AARs ruling on the capital gains tax rate. The transaction was an off-market one. Though the AAR ruling will be binding only in the case of Timken, it has advisory value. The judgement could be cited as an example by any assessee in future.

Computation of capital gains is laid out under Section 48 of the Income Tax Act. This section details various provisions like indexation benefit and foreign currency fluctuation benefit that are taken into account while computing the capital gains tax liability for a company.

Typically, the capital gains tax differs between 10% and 20%, depending on the options availed. For instance, a company is liable to pay capital gains tax at a rate of 20% if it avails the indexation benefit. Indexation is the process by which the cost of acquisition of capital asset is marked to represent the cost levels existing in the year the capital asset is sold. Cost normally keeps increasing from year-to-year because of inflation. Every year, the finance ministry notifies the Cost Inflation Index for that year, which is used in calculating indexation.

A company is exempted from long-term capital gains tax if the transaction was liable for the securities transaction tax. But in this case, since the transaction was off-market and no STT was paid, it was liable for a long-term capital gains tax.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions