Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: VAT Audit :: TDS :: articles on VAT and GST in India :: empanelment :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: ACCOUNTING STANDARDS :: VAT RATES :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
General »
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November
 Why PM Narendra Modi must beware of the breathtaking Arthakranti tax
 Japanese firms seek easing of restrictions on funding in India
 Tax on black money: How the cookie will crumble
 Income tax officials say raids on jewellers based on 'credible intelligence' proving fruitful
 Exchange window being misused, government forced to reduce limit to Rs 2000, says Arun Jaitley

Tax BPO services at 11-13% over cost
November, 18th 2009

Foreign software and BPO services companies should be allowed to pay tax on a presumed rate of profit on inter-company transactions. The tax constancy firm Deloitte has suggested a 11-13% rate over costs for both software and BPO services in a white paper released on Tuesday.

Introduction of the safe harbour rules is expected to improve the foreign investment climate in the information technology and IT enabled services sector such as BPOs by providing clarity on tax liability and simplicity in tax administration.

The Budget 2009-10 had made an announcement in this regard and the Central Board of Direct Taxes, the apex direct tax body, is working on the rules expected to be announced soon.

To reduce the impact of judgmental errors in determining transfer price in international transactions, it is proposed to empower the Central Board of Direct Taxes (CBDT) to formulate safe harbour rules. finance minister Pranab Mukherjee had said in his budget speech.

A safe harbour would essentially mean circumstances in which, the Indian revenue Authorities shall accept the transfer pricing declared by the taxpayer.

Transfer pricing provisions in general require income arising from an international transaction between two or more related organisations to be calculated at an arms length price or at a price comparable to similar transactions between unrelated parties.

We have lost foreign investment to countries such as Sri Lanka, Philippines... Safe harbour provisions will create a conducive climate for foreign investments by reducing administrative burden, said Shonto Ghosh, senior director, Deloitte.

India had introduced transfer pricing norms in 2001 but complexity has resulted in an increase in litigation in such tax cases. Industry lobby bodies such CII, FICCI, Nasscom had in past asked the government to introduce safe harbour principles, advance pricing arrangements to provide certainty to already present MNCs and new investors.

Provision of safe harbours is common practice in some most advanced countries such as United States, Australia for non-core services as well as emerging economies including Brazil, Mexico and in some form even in China.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

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