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: cpt :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: empanelment :: form 3cd :: TDS :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: VAT Audit :: due date for vat payment
 
 
News Headlines »
 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
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?

Introduce equalisation levy as part of Income Tax Act
March, 31st 2016

Industry chamber Assocham today suggested the government to introduce the equalisation levy as part of Indian Income Tax Act itself and not as a separate chapter in the Finance Act as it would only increase cost of doing business.

"Introducing equalisation levy separately under Finance Act and not incorporating it as a part of the existing Income Tax Act would only increase cost of doing business for Indian companies, as foreign companies would insist that this being a domestic levy should not affect payments made to them, as such domestic companies would be required to gross up equalisation levy while making payments, thereby adding to the cost," Assocham said in statement.

The committee set up by the Central Board of Direct Taxes (CBDT) earlier this month had suggested that Equalisation Levy of 6-8 per cent be imposed on amount paid to non-resident by an Indian resident for specified digital services. It also suggested that this Levy should not be a part of the Income Tax Act.

The specified services would include online advertising or any services, rights or use of software for online advertising, including advertising on radio & television, designing, hosting or maintenance of websites, digital space for website, e-mails, blogs, facility for online sale of goods or services or collecting online payments.

"Whereas, if this levy is introduced as part of the Income Tax Act itself, it would not add to the cost of business to Indian company as it would be in nature of regular withholding," it said.

Besides, the Organisation for Economic Cooperation and Development ( OECD) had explicitly communicated that countries could introduce 'equalisation levy', provided they respect their existing treaty obligations.

On the issue of retirement funds, Assocham has recommended that all stipulations relating to taxability of accumulated balance/annuity for recognised provident fund and superannuation fund as well as the financial limit of Rs 1.50 lakh for employer's contribution to Superannuation Fund be withdrawn.

As per a recent government clarification in respect of the accumulated balance in the recognised provident fund, the taxability of stipulated 60 per cent balance will not apply in case the same is invested in an annuity.

"This is an extremely controversial suggestion since money (lump sum) is generally utilised from the provident fund for various important purposes like construction of house, wedding and others and the salaried class cannot be forced to invest in any annuity scheme for tax saving purpose when lump sum money is required post-retirement," it said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

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