Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: TDS :: cpt :: Central Excise rule to resale the machines to a new company :: VAT RATES :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: ACCOUNTING STANDARD :: due date for vat payment :: empanelment
 
 
News Headlines »
 Income-tax (21st Amendment) Rules, 2017
 Deadline for filing income tax return nears; here are 10 common mistakes that you must avoid
 All you need to know about form 26AS
 How to file income tax return?
 7 changes that affect income tax return filing this year
 How To File Income Tax Return (ITR) Online For FY2016-17? Last Date July 31
 Last date for filing income tax return approaches: What is Form 26AS? How it can help you claim refunds
 Income Tax department to launch mobile app to make life easy for taxpayers
 6 things to remember while filing your income tax return
 Want to save on tax? Here are deductions you can use while filing ITR
 July 31 Is Last Date For Filing Tax Return. Why Form 26AS Has To Be Checked

I-T demands $1.9b tax from HTIL over Hutch stake sale
March, 28th 2007

The Income Tax department has demanded that Hutchison Telecom International (HTIL) pay capital gains tax of about $1.9 billion on the gains that it is likely to make by selling its stake in Hutchison-Essar.

The international taxation unit of the Income Tax department in Mumbai has issued a notice to Hutchison-Essar, asking it to impress upon HTIL the need to discharge its tax liabilities on the gains.

...it has come to our knowledge that HTIL has made substantial gains from their investment in Hutchison Essar. You are requested to impress upon HTIL to discharge their tax liabilities on the gains made, the notice dated March 23 and served on the principal officer of Hutchison-Essar says.

This issue relates to HTIL and not to Hutch Essar. Secondly, this is a transaction between a non-resident and a non-resident. It will attract tax in the respective jurisdictions, said Asim Ghosh, managing director Hutch Essar told ET.

The tax demand comes just weeks after the Hong Kong-based Hutchison concluded a deal to sell its majority holding in Hutch Essar to Britains Vodafone in a deal valued at about $18.8 billion. The I-T department notes that the HTIL has said that the transaction is expected to generate a profit before tax of about $9.6 billion.

Your attention is directed to Section 195 of the Income Tax Act which casts an obligation on a person responsible for paying any sum which is chargeable to tax in India to a foreign company to deduct income tax at source at the time of payment credit. Thus, both the payer and the payee are required to discharge their obligations/liabilities as provided in the Income Tax Act, the departments notice continues.

Your stand that you are not in a position to submit requisite details since you are not a party to the transaction is not correct since the shares of your company are being sold and you can provide the information from the parties concerned, the notice concludes.

R Sriram
(With inputs from M Padmakshan)

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-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