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: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: cpt :: list of goods taxed at 4% :: articles on VAT and GST in India :: VAT RATES :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: due date for vat payment :: TDS :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
« News Headlines »
 TDS on rent and other tax tasks to complete before March 31
 5 income tax changes which will come into effect from April 1, 2018
 Why you shouldn't be a last-minute tax filer
 How to calculate income tax for this assessment year on Moneycontrol
 6 Tax notices you may get and how to cope with them Income Tax Notice
 Deadline to pay advance tax ends tomorrow: Here is a step-by-step guide
  Central Goods and Services Tax (Second Amendment) Rules, 2018
 Income Tax Return Filing Deadline: Waiver On LTCG Tax To End On 31 March. Details Here
 Income tax returns (ITR) filing: Top mistakes that can be very costly
 Income Tax Return (ITR) filing: 6 last-minute things you can still do to save tax for FY17-18
 How to file Income Tax Returns online in 5 simple steps

CBDT chairman in Mauritius to plug tax avoidance loopholes
February, 11th 2008

Barely 20 days ahead of the presentation of the Union Budget, Indias top taxman is now in Mauritius on an official visit.

Sources in finance ministry said that the governments decision to send the chairman of the Central Board of Direct Taxes (CBDT) to Mauritius just ahead of the Budget is to find ways to plug the loopholes of the Double Taxation Avoidance Act (DDAA) and increase tax collection, apart from getting specific inputs for possible transfer pricing reforms.

CBDT chairmans visit could be related to transfer pricing reforms.

His visit could also be attributed to the CBDTs chasing of many mega deals where no tax was paid in India. 
His visit could also be attributed to the CBDTs chasing of many mega deals where no tax has been paid in India. CBDT chairman R Prasad, who left for Mauritius on Wednesday last will be back in India on Tuesday.

In fact, India has been mounting pressure on Mauritius to amend Double Taxation Avoidance Act (DDAA), in an attempt to increase tax collection from many corporate transactions, engineered by non-Mauritius residents out of that island country. Sources said that an amendment to DDAA is on the card.

According to DDAA between India and Mauritius, capital gains arising out of sale of shares is taxable in the country of residence of the shareholder and not in the country of residence of the company whose shares have been sold. Thus a Mauritius-based company will not pay tax in India if it sells shares of an Indian company, and because there is no capital gains tax in Mauritius, the company will pay no tax at all.

The governments attempt to increase the tax kitty is indispensable in an election year as the social expenditure of the government is bound to increase substantially.

The Indian tax authority is following many mega deals where no capital gains tax has been paid. I feel, CBDT chairman R Prasads visit to Mauritius could be related to that. If the CBDT ensures receiving capital gains tax in mega deals like Hutch-Vodafone, the tax collection will increase further which, in turn, will help the government raising its social budget. The visit could be related to governments attempt to initiate reforms on transfer pricing as well, sources said.

Transfer pricing refers to the pricing of goods and services within a multi-divisional organisation, particularly with regard to cross-border transactions. The TP issues have become relevant in India as many MNCs are now setting up major operations in the country.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

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