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: TDS :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: empanelment :: form 3cd :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: VAT RATES :: VAT Audit
 
 
« News Headlines »
 All about income tax return form Sahaj
 Why seeing Form 26AS is a must before filing tax return and how to access it
 No tax on notice period pay cut
 Interpretation Of Central Goods And Services Tax (Cgst) Act (Part-1)
 What to do if you haven’t filed your taxes
 Income Tax Declaration To Employer: 10 Changes You Should Be Aware Of
 What your income tax says about you
 Self e-filing of income tax returns
 Why do we get 3 extra days to file income tax returns in 2017?
 Income Tax department launches 'Operation Clean Money'-II
 Here’s how to e-file your income tax return

Interest on withheld ECBs may be taxed
January, 19th 2008
That moderating capital flows into the country is expected to top the agenda for Budget 2008-09 is clear from the finance ministrys plans to tax the interest earned on external commercial borrowings (ECBs).

This would make foreign debt more expensive and help moderate the surplus on the capital accountexpected to touch $103 billion in this fiscal, against an initial estimate of $58 billion. ECBs were the largest component of this.

Sources said the government has been considering the tax for quite some time. In the meantime, it had resorted to sterilisation of excess capital inflows. However, high domestic interest rates continue to make India an attractive and lucrative destination for global capital funds.

The government feels the forthcoming Budget, just a few weeks way, would be a good time to announce the decision on the proposed tax.

Even the Prime Ministers Economic Advisory Council review of the economy has acknowledged the need to limit the flow of ECBs. Since the pressure on the rupee to appreciate is likely to continue in the immediate future, clear signals should be given to the Indian industry to make adjustments through productivity increases and to tap the booming domestic market, it said.

Companies have to park their ECB funds abroad until they are ready to use them for the specific projects for which the money have been raised. The finance ministry now proposes to tax the interest that accrues as interest on this sum.

Commenting on the possible levy, Mukesh Butani, partner, BMR& Co, said, This can be a short-term measure, the aim of which will obviously not be to garner resources. But the government, while imposing such a tax, must spell out the important milestones on the achievement of which this tax will be withdrawn.

Arvind Virmani, chief economic adviser in the finance ministry, has also recommended imposing a tax on the interest paid on ECBs and auctioning such debt.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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