Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get 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) | 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
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: list of goods taxed at 4% :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: empanelment :: due date for vat payment :: VAT Audit :: articles on VAT and GST in India
 
 
Direct Tax »
 No escape from fair taxation for firms as info from countries pour in: CBDT
 Income tax department open to reducing withholding tax for companies
 The different ways in which you can verify your income tax return
 Finance Ministry asks taxmen to submit note on high-pitched assessments
 Businesses in a tizzy over tech glitches in filing GST returns
 Haryana tax department turns lens on shell companies
 CBDT denies data inconsistency over new taxpayers after note ban
 No inconsistency in number of tax payers: CBDT
 India will benefit from growing tax revenue in FY2018
 I-T plans to pursue property-holders who have never filed income tax returns
 Direct Tax Collections up to July, 2017 show Growth

What's the quantum of tax sought from foreign funds?
April, 25th 2015

Were the estimates of tax demands from foreign funds, raised by the Central Board of Direct Taxes (CBDT) towards capital gains made by them in the past, grossly exaggerated? It seems so from an answer given by Minister of State for Finance Jayant Sinha on Friday.

"Tax notices have been issued in 68 cases of overseas funds to bring to tax the book profits as per minimum alternate tax (MAT) provisions under Section 115JB of the Income Tax Act, 1961," the minister replied in writing to a question in the Lok Sabha.

"So far, total tax demand of Rs.608 crore has been raised," he said in reply to a question, that sought information on whether such notices were issued for tax evasion, adding that this was a legal issue and provisions were being applied accordingly.

Over the past week, however, estimate of the quantum of tax demand has been some Rs.40,000 crore (around $3-$4 billion) from some 50-150 foreign funds -- a matter that has been raised with the top brass of the finance ministry by all stakeholders and foreign investors.

The statement from the minister came even as the direct tax board on Friday wrote to all income tax principal chief commissioners, that cases where foreign funds have claimed tax benefits, using the treaties with other countries, must be dealt with fast.

"Since the issue involved is limited, such claims should be decided expeditiously. Accordingly, it has been decided that all cases of foreign institutional investors seeking treaty benefits under the provisions of tax treaties may be taken on such claims within a month."

Reacting to the development, Sunil Shah, a partner with consultants Deloitte Haskins and Sells, said the recent debate on tax demands on some foreign funds under minimum alternate tax, as also the reopening of cases pertaining to the past, needed government clarification.

"Otherwise it will need to be resolved by the courts," he said, adding there were several foreign portfolio investors who qualified for benefits under the double taxation avoidance treaties that India had entered into with other countries.

"This is a welcome step that will clear the uncertainty for some categories of foreign funds. For those who do not have treaty protection, the controversy would continue till it is settled either by the government or by the courts," Shah said referring to the tax board circular.

Minister of State for Finance Sinha has already assured foreign funds, during a meeting with them on Thursday, that the government was already considering some amendments to clarify its position on minimum alternate tax rules with retrospective effect for their benefit.

 
 
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