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
Latest Expert Exchange
News Headlines »
 Which ITR form applies to you for financial year 2017-18?
 Income tax returns filing form-2 released; should you use it? Find out
  Are you planning to file ITR 1 form? here's how to do it Income Tax Return (ITR) filing
 30 LPA-Opening Financial Controller
 ITR form 2 in java release by CBDT for return filing by individuals
 How to file your income tax return using ITR Form-1 Income Tax efiling for AY 2018-19
 Income tax returns (ITR) filing: Have you received I-T dept notice? Safeguard yourself; here is how
 Delayed release of electronic ITR forms may compel CBDT to extend the filing deadline
 Trading volume linked to tax return?
 How to e-verify your income tax return? Here are five ways to do it
 Received an Income Tax notice? Here is what you can do

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 2018 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