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 :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: VAT RATES :: empanelment :: TDS :: ACCOUNTING STANDARD :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: VAT Audit :: Central Excise rule to resale the machines to a new company
« News Headlines »
 How to link your Aadhaar and PAN details to file income-tax returns
 How to calculate capital gains tax on property sold at less than stamp value?
 Return Filing - Under GST, this is how you will file tax returns from July 1
 Income tax filing FAQs part 1
 Filing Income Tax Returns? Things To Keep In Mind As Deadline Approaches
 Filing of online return for 4th quarter of 2016-17- extension of period thereof.
 New tax accounting standards may reduce leeway for infrastructure companies
 GST – CONCEPT & STATUS – As on 01st May, 2017
 Govt extends VAT deadline, relief for developers
 Income Tax Appellate Tribunal Rules, 2017
 Got your Form 16? You should file income tax returns early to enjoy benefits

Relief to foreign firms in direct tax overhaul
February, 17th 2007
Banks to get tax break on 3% bad loans, get level playing field. 
Budget 2007 is expected to introduce major changes in non-resident taxation, partly aimed at making it easier for foreign companies to do business in India and encouraging greater investment inflows. 
These proposals are expected in the new Direct Taxes Code likely to be announced by Finance Minister P Chidambaram on February 28. 
Among the changes is one that proposes to bring in an anti-abuse, anti-avoidance provision in the Double Taxation Avoidance Agreements (DTAAs) between India and countries like Mauritius. 
The provision is aimed at ensuring that the benefit of such treaties is available to only residents of either or both the contracting nations and prevent treaty-shopping, which has been a source of considerable debate. 
Official sources said, As a strategic measure, the government is considering introducing the provision as a part of the new direct tax code, rather than as a standalone provision in Finance Bill 2007. 
Another proposal expected to find its way into the Budget is to give foreign banks a level playing field by allowing them to claim 3 per cent of their non-performing assets (NPAs) as deduction for tax purposes. 
Currently, foreign banks are not allowed deductions on account of bad loans, though a 5 per cent deduction is already available to Indian banks. 
In addition, the finance ministry is considering making it mandatory for liaison offices and representative offices to have a Permanent Account Number (PAN). 
The need for a PAN for such entities comes in the backdrop of the recent Authority for Advance Rulings decision in the case of UAE Exchange Centre LLC. The authority concluded that the profit attributable to the permanent establishment (the liaison office) would be taxable in India even under a DTAA. 
An amendment is also likely to Section 115A, which provides for taxing income from dividends, royalty and technical service fees for non-residents (not being a company) at lower rates of 30, 20 and 10 per cent, depending on the date of the agreement. 
Further, the Ministry of External Affairs has given go-ahead for introducing an amendment to Income Tax Act, 1961, which will define India (for taxation purposes) on the same lines as provided for in the tax avoidance agreements. 
The amendment will be incorporated in the coming policy announcement. The present Act defines a permanent establishment as a fixed place of business and this has resulted in a lot of tax litigation. 
Among other proposals, the Draft Direct Taxes Code Bill is also expected to omit sub-section (2) of Section 92A in the Income Tax Act, 1961, on the ground that it clashes with the concept of associated enterprise contained in another sub-section . 
Further, the time limit for issue of a notice under Section 149(3) is expected to be increased to six years, to align it with the time for reopening an assessment. 
Section 35DDA (2) and (3) is also expected to be amended to make its benefits available to all assessees and not just Indian companies. 
However, three crucial sections 115AB, 115AC, 115 AD which deal with tax treatment of individual non-residents and foreign institutional investors are unlikely to be changed in a major way, despite the call for equality from the task force on non-resident taxation.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 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