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: TDS :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: VAT Audit :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ACCOUNTING STANDARDS :: cpt :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: ACCOUNTING STANDARD :: form 3cd
 
 
« General »
 Tax Department To Launch 2nd Phase Of Bank Accounts' Scrutiny Next Month
 How to claim tax benefit on tuition fees under Section 80C
 Online Income Tax grievance redressal facility launched at 60 offices
 Demonetisation impact on government tax revenue marginal; direct tax personal income grew at above budget estimates
 ICAI seeks more accountability, transparency in defence sector
 Will Budget help double farmers’ income?
 Verify online deposits made post demonetisation, income tax department asks taxpayers
 Union Budget 2017: Best budget is do not change anything, do no harm, implement well
 Why salaried class deserves standard deduction
 3 new taxes that Modi government could introduce, but won't
 Tax gains may showcase demonetisation windfall

Tax Residency Certificates likely to be deferred by two yrs
April, 17th 2013

The finance ministry may defer tax residency certificates by two years to soften the tax blow, which could be positive news for foreign investors reports CNBC-TV18’s Aakansha Sethi.

According to Budget 2013, tax residency certificates (TRCs) are not sufficient to claim tax treaty benefits. Though General Anti-Avoidance Rule (GAAR) and Tax Residency Certificate (TRC) are two separate things, it had caused a lot of concern because the finance ministry had brought into the Act what was till last year only in the explanatory memorandum. The provision said that TRC was a necessary condition, but it was not a sufficient condition and one would need other documents to prove beneficial ownership in order to get the benefits of a treaty.

In terms of Mauritius, where most of the money comes from, capital gains are not included under this but it had still caused a lot of concern amongst investors. A day after that the finance ministry said that Circular 789 in terms of Mauritius stands and hence capital gains would not be charged on transactions from Mauritius from where most of the investments come.

Sources now say that a few days before the Finance Bill is going to be tabled in parliament, finance ministry is contemplating whether they should defer TRC by two years and are evaluating the pros and cons of doing so. However, there is no final decision on this. The other option is to rewrite that because the Finance Minister himself had said that the TRC provision was very clumsily written.

While the question of 789 had been answered, it had left questions like those of participatory notes (P-Notes) unanswered. So, it would make sense for the finance ministry to defer TRC by two years, which is when GAAR also comes in and to look at both of those together.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

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