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: articles on VAT and GST in India :: TDS :: VAT Audit :: form 3cd :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: list of goods taxed at 4% :: VAT RATES :: cpt :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD
« Indirect Tax »
 Indirect tax collections rise by 23.1 per cent in November
 Government waives service tax charged while making payments through credit card, debit card, charge card or any other payment card; waiver limited to payments up to Rs. 2,000 in a single transaction
 Clarification Regarding Filing of Offline Challans with IEPF Authority under Companies Act
 Cash deposits in Jan Dhan accounts drop after govt warning: income tax dept
 Indirect tax receipts to see small, brief hit’
 There is no tax on interest income of up to Rs3 lakh a year for senior citizens
 Chidambaram favours change in direct tax rates
  Further rationalization of revised simplified procedure for fixation of brand rates
 Kerala to accept demonetised banknotes for payment of state tax till Nov 24
 Centre-state gridlock over GST jurisdiction remains, could threaten tax rollout
 India to levy tax on investments from Cyprus from April 2017

Clarity on retrospective taxation of indirect transfers soon, says P Chidarmbaram
December, 13th 2012

P Chidarmbaram on Wednesday said the government would soon announce changes in the tax framework to bring about clarity on the retrospective taxation of indirect transfers but refused to give out any details.

The changes would have implications for the I-T department's over Rs 20,000 crore tax demand on Vodafone for its acquisition of Indian company Hutchison Essar in 2007.

"Discussion is over. Drafting in going on. Decision has been taken.. Once the drafting is complete, it will come to me," finance minister P Chidambaram said in a clear indication that the government was looking to unveil the necessary changes in the taxation structure soon.

Chidambaram, however, refused to give any details about whether the changes that the government was proposing would require an amendment in the law or it would be done through an executive directive.

The income tax department had demanded nearly Rs 8,000 crore in tax from the British telecom major Vodafone for failing to withhold tax on $11.2 billion payment made to Hutchison for the acquisition executed through a deal in Cayman Islands. The amount has increased to over Rs 20,000 crore including penalty and interest.

The company disputed the tax claim saying the deal was not taxable as it was executed overseas. The Supreme Court also ruled in Vodafone's favour. The government, however, retrospectively amended the tax laws in the budget for the current year, allowing tax authorities to tax overseas indirect transfers involving underlying Indian assets, virtually nullifying the apexBSE 0.00 % court ruling.

The issue was referred to a committee headed by Parthasarathi Shome after the amendment faced local and global criticism.

Prime Minister Manmohan Singh and finance minister P Chidambaram have said that the government would try and address all outstanding tax issues.

The Partho Shome committee in its report had said the tax should be applied prospectively, and if that's not possible, at least the interest and penalty amount should be waived off.

Asked about the controversial general anti avoidance rules, Chidambaram said the department had finished its groundwork on the issue and the decision now rested with Prime Minister. "It's (amendments to GAAR rules) with PMO. When PMO clears it, you will come to know. Our exercise is over as far revenue department is concerned," he said.

The Shome committee on GAAR had recommended that GAAR be deferred by three years but the CBDT opposed the report and favoured a deferral of just one year.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

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