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: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: list of goods taxed at 4% :: VAT Audit :: TDS :: form 3cd :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment
« News Headlines »
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016
 Announcement - Clarifications in Respect of MEF 2016-17

Nations may come together to stop abuse of tax pacts
November, 10th 2014

India's attempts to amend tax treaties with countries such as Mauritius may have drawn a blank so far, but its efforts are about to get a huge boost with several nations getting together to ramp up work on a global convention to plug treaty abuse. "Multilateral convention will supplement tax treaties. World is moving towards multilateralism... There would be communiques that would be binding," Akhilesh Ranjan, joint secretary, ministry of finance said at an event organised by industry body CII on Friday.

The convention will have provisions such as limitation of benefit that will prevent abuse of treaty. This will save countries the trouble of having to negotiate such provisions individually with each of their partners. Limitation of benefit clause is usually incorporated in treaties to ensure that only genuine investors avail benefits of a tax pact and include conditions such as a minimum level of investment, listing on the local stock exchange, ceiling on turnover and minimum expenditure, local residents on company board and number of board meetings for carrying out operations in one of the contracting states.

India's tax treaty with Singapore has such provisions and the country has been attempting to incorporate a similar one in its pact with Mauritius. India-Mauritius treaty offers exemption from capital gains tax to investors from the island country, making Mauritius an attractive destination to route investments into the country.

However, Ranjan said the convention is under discussion and it will need to be seen after it is firmed up. Elaborating on the new OECD (Organisation for Economic Cooperation and Development) rules for global base erosion and profit shifting (BEPS), aimed at collecting a fair share of taxes from multinationals operating in different tax jurisdictions and addressing challenges posed by digital world, Ranjan said businesses need to gear up for the new rules.

Multinational companies use a wide range of cross-border tax planning techniques that result in little or no tax liability and such techniques are referred to as BEPS. "Work on BEPS is moving very fast. If things go on track, I think by December 2015 one would end up with set of rules, set of principles which will have acceptance all over the world," The BEPS is being deliberated by the G20 nations and some forward movement is expected at forthcoming summit at Brisbane, he said. "Businesses should gear up, prepare themselves for the changes in the tax legislation, and government is equally open to consider views of the industry," Ranjan added.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

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