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 :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: cpt :: list of goods taxed at 4% :: articles on VAT and GST in India :: VAT RATES :: VAT Audit
« News Headlines »
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout

Taxhounds to chase India Inc's global deals
March, 23rd 2007

The global Indian takeover story is attracting the attention of I-T sleuths. Taxmen at North Block are now planning to focus their scanner on trans-border takeovers and mergers.

The department has set up a group to prepare modalities for carrying out offshore investigations. The group will study the modus operandi and examine what can constitute legally acceptable evidence in a case involving tax evasion in an offshore transaction. It will present its recommendations to the Central Board of Direct Taxes.

The group will also examine what action the department can take in cases where cross-border transactions lead to evasion of tax in the country, and the evidence also lies outside India. While the double taxation avoidance agreements that India has with other countries have a built-in clause for exchange of information, the flow of information is not very easy and takes time.

The situation has undergone a sea change in the past 5-7 years, a source pointed out, with a massive spurt in cross-border transactions. Outbound FDI from India in the current fiscal is estimated to be over $20 billion. Also, technology has undergone a dramatic change. A firm can now transfer huge sums of money to any entity anywhere in world by the click of a mouse, the source said. This poses a fresh set of problems.

Also, in certain instances of suspected tax evasion in offshore transactions, the department has been unable to proceed due to delayed response from the authorities in other countries.

Cross-border transactions are under the lens of tax departments even in developed countries, especially deals involving unlawful tax jurisdiction or a tax haven. The US has entered into information exchange agreements with some tax havens like Cayman Islands. In fact, recently, a group of senators introduced a Stop Tax Haven Abuse Bill aimed at curbing evasion of US taxes through tax havens.

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

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