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: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: empanelment :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: form 3cd :: TDS :: due date for vat payment :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India
ę Direct Tax »
 Deadline For Income Tax Returns Filing Only 12 Days Away. 10 Points
 Income Tax: E-assessment ensures greater efficiency in the taxation system
 10 Points Deadline For Income Tax Returns Filing Only 2 Weeks Away.
 Income tax returns (ITR) filing: A step by step guide to check your ITR status online and offline
 How to save tax; amazing tips to make your money stay in your wallet Income tax returns (ITR) filing
 Want to save tax? Here are the best options
 Suggestion For Option To Assessee For Higher And Lower TDS/TCS For Optimization Of Tax Collection And Refunds
 CBDT to conduct nationwide review of tax collection for FY18 today
 Here are a few last-minute tax saving ideas Not planned taxes yet?
 Confessions of a fake CA exposes lacuna in e-filing of tax return
 Greetings from the income tax department

New direct taxes code unlikely in next Budget
December, 21st 2011

But, govt plans to bring some provisions that cant wait.

The Direct Taxes Code (DTC), which will replace the Income Tax Act, 1961, is unlikely to be implemented from the next financial year as planned earlier.

Unfazed, the finance ministry is considering announcing some DTC provisions in the Budget 2012-13.
The delay in the roll-out may occur as the chances of Parliaments standing committee on finance submitting its report on the Bill in the ongoing Winter Session, which concludes on December 23, are bleak.

The ministry is identifying DTC provisions which cannot wait for another year and would best be rolled out from the next financial year itself. These may include some measures in international taxation such as Controlled Foreign Corporation (CFC) and General Anti-Avoidance Rules (GAAR).

About five to six provisions of DTC, such as CFC and GAAR, may come as part of the Finance Bill in the Budget if the DTC introduction date is pushed ahead, a finance ministry official told Business Standard.

With barely a week left for the Winter Session to conclude, the ministry fears the report may not be tabled in the current session and DTC would miss the April 2012 deadline. Unlike the Goods and Services Tax (GST), DTC cannot be introduced in the middle of the year.

When asked whether the report would be tabled in the current session, standing committee chairman Yashwant Sinha said, It looks difficult because only a few days are left.

The fate of GST is already uncertain, with states and the Centre still not able to arrive at a consensus on most of the contentious issues. While the government cant do much for timely implementation of GST, it does not want to take the blame for stalling direct tax reforms, entirely in its domain.

DTC has already missed one deadline. Earlier, it was scheduled to be implemented from April 2011. But the government postponed it by a year, saying it wanted to give more time to the industry to adjust to the new system.

CFC and GAAR are two key highlights of the proposed DTC and are not there in the existing I-T Act. The DTC Bill has proposed to introduce CFC rules in India for the first time. The rules will allow authorities to tax foreign companies controlled by residents which defer payment of tax. At present, taxing these companies gets deferred as companies delay the payment of dividends. Foreign companies controlled by residents are taxed in the hands of the Indian company only when distributed in the form of dividends.

GAAR and CFC details will be provided separately in the rules to be framed by the finance ministry.

Thin capitalisation rules, which help tax authorities reclassify some of the interest paid on debt as dividend and deduct tax on it, may also come under GAAR. The rules will be introduced to check tax evasion by companies which show higher capital infusion by way of loans instead of equity because interest paid on debt is eligible for tax deduction. Dividends, on the other hand, do not enjoy any deduction as they are paid from the income post-tax.

The DTC Bill, aimed at simplifying tax rules and widening the tax base, was tabled in the Lok Sabha in August 2010 and referred to the standing committee for scrutiny.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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