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: due date for vat payment :: VAT RATES :: VAT Audit :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: TDS :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd
 
 
News Headlines »
 Directions under section 119 of the Income-tax Act, 1961
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime
 5nance.com launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful

Govt likely to cut tax rates for foreign cos
February, 16th 2007

The government is toying with the idea of lowering the tax rate of foreign companies to bring them on par with India Inc in the forthcoming Budget, in a bid to project India as an attractive investment destination and low-tax regime.

Since, the government is looking at bringing down tax rates for Indian companies, there is a case to bring them down for foreign companies as well, a source told ET. The foreign companies having branch offices or representative offices face a tax rate of 40%, besides 2.5% surcharge and 2% education cess, which makes the effective rate 41.8%.

For Indian companies, the effective tax rate works out to 33.66%, with corporate tax rate of 30%, surcharge 10% and cess 2%. A subsidiary of foreign company attracts rate applicable for Indian companies.

If the dividend distribution tax or corporate tax for domestic companies is reduced, then in that case, similar reduction should be made in the tax rate for foreign companies to maintain parity between the two, KPMG director Vikas Vasal said.

With infrastructure weighing heavy on its agenda, the government wants to woo foreign expertise into the sector. Since, some foreign companies work on a project basis, they prefer setting only representative office for that duration. Having a low tax regime could bring in not just investments, but also technical expertise. The funding requirement for infrastructure over next five years is pegged at $350 billion.

A large number of foreign investors may look at India only for medium-term basis. They would prefer to keep a full control over the project and not like to float a subsidiary since it involves various other costs, an official with a multinational company said.

Prime Minister Manmohan Singh and finance minister P Chidambaram have hinted at moderation in tax rates.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

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