Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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: form 3cd :: VAT RATES :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: empanelment :: list of goods taxed at 4% :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: due date for vat payment :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS
 
 
News Headlines »
 How to respond to a tax notice under section 143
 Income-tax (22nd Amendment) Rules, 2017
 All about Exports under GST
 Have you missed the due date of filing your Tax Returns?
 What you should know about income tax refunds
 Income tax scrutiny to remain limited despite surge in returns filed
 Regarding Filing of online return for first quarter of 2017-18 extension upto 01-09-2017
 Deadline to file returns extended to 28 August for biz with transitional
 GST input tax credit form
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states

Tax ambiguity clouds new financial sector initiatives
November, 04th 2015

At least five new fund-raising avenues, despite having cleared with much fanfare by the regulatory authorities, have remained doubtful starters due to lack of clarity on the taxation front.

Instruments such as Real Estate Investment Trusts (Reits), Infrastructure Investment Trusts (InvITs) and unsponsored depository receipts (DRs) have failed to take off.

Even the Gujarat International Finance Tech, or Gift) City, has yet to see any business, despite many blue chip companies showing interest in set their shops there.

An official said they were in the process of removing impediments to make sure these new initiatives take off. “The Department of Economic Affairs (DEA) is in touch with the revenue ministry to clear these hurdles. The past two Budgets have had numerous announcements for capital markets. We are trying to iron out some of the pending issues,” said the official.

Reits, InvITs and unsponsored DRs were a part of Finance Minister Arun Jaitley’s maiden Budget speech. Subsequently, the Securities and Exchange Board of India (Sebi) cleared the decks to their launch by notifying regulations.

However, the regulations were not enough as these instruments got mired in tax ambiguity. Many real estate players are in active discussion with the finance ministry to solve tax issues. “The market is finding it hard to launch these products, as there is tax complexity on components of income within these instruments, especially in Reits. Further, lack of any special tax dispensation is making these instruments less attractive,” said Riaz Thinga, partner, Walker Cahdiok & Co.

Recently, the Sebi chairman stated that it had cleared all issues related to the instrument and what was pending was only tax clarity.

In case of DRs issued at back of shares is exempted from capital gains. However, DRs issued on the back of other permissible securities are not exempted. Additionally, there is no specific exemption from capital gains tax for conversion of a DR.

The revenue ministry has not been keen on clearing this hurdle, as they fear it could lead to money laundering.

Six months after the launch of GIFT in Ahmedabad, YES Bank became the first bank to start its banking operations. But, for exchanges, the wait could be longer.

“BSE is in the process of setting up a new international exchange in Gift City in partnership with Deutsche Borse. Regulations on the exchange side are already in place, but clarifications related to the Companies Act and tax matters are to be announced,” said Ashish Chauhan, MD & CEO, BSE.

According to the market players, it will come across as a half-hearted attempt if India doesn’t have a globally competitive tax structure for Gift.

“There is a need for special tax advantage for Gift such as removal of securities transaction tax (STT), commodities transaction tax (CTT), a favorable withholding tax structure at five per cent,” said Thinga.

The revenue department is yet to issue any guidelines on tax liability for Gift.Another issue for the revenue ministry is to implement the budgetary announcement related to offshore fund managers. This involves a fund manager moving to India to manage assets largely invested in the country or in overseas markets should not be taxed at a higher rate than someone based overseas.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

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