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: empanelment :: Central Excise rule to resale the machines to a new company :: cpt :: VAT Audit :: form 3cd :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: VAT RATES
 
 
General »
 Advance tax payout by top cos grows just 2% in Sept quarter
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension
 Exporters demand total exemption from GST
 Here's what you must know to stay clear of taxman

India targets foreign money with investment tax cut
May, 02nd 2013

India cut tax rates for foreign investors on interest income from investments in government and corporate debt, hoping to attract more funding to bridge its current account deficit and polish its reformist credentials.

The change in withholding tax, which a senior finance ministry official said would fall to 5 percent from 20 percent, delivered on a promise to foreign investors by Finance Minister P Chidambaram during a recent visit to North America.

The cut, welcomed by markets and part of a finance bill passed on Tuesday by the Lok Sabha amid an opposition boycott, would be effective for two years from June 1, the minister said.

Chidambaram has been a strong advocate within the government of fiscal reforms to attract increased levels of foreign investment, though many other Asian countries including Singapore do not tax such interest income at all.

The government relaxed ownership limits for the foreign investment community at the start of April, allowing it to hold up to $25 billion in government bonds and $51 billion in corporate bonds at any one time.

Foreigners have invested more than $11 billion in Indian equities and nearly $3 billion in debt so far this year.

"The cut in the tax rate for foreign investors should help Indian companies to raise more funds," said Pranav Sayta, tax partner at tax consultancy Ernst and Young.

Another finance ministry official said the government would soon ease rules on Indian shipping, telecom and real estate companies raising funds in overseas markets.

Chidambaram said a tax residency certificate issued by a foreign government would be an accepted proof of residency for foreign investors to avoid being taxed both in India and their home country.

In its budget proposals, the government had said that would be "(a) necessary but not a sufficient condition".

Hopes that Tuesday's reforms would increase capital inflows boosted Indian markets. The 10-year benchmark government bond yield fell as much as 3 basis points to 7.73 percent while the rupee closed up 0.8 percent against the dollar at 53.80.

"The regulators are gradually liberalising the debt markets," said Rohit Arora, emerging market rate strategist at Barclays Capital.

"Our estimate of $6-8 billion capital inflow in government bonds in 2013/14 fiscal year is at a upside risk following these measures."

Adverse investment flows have contributed to widening India's current account deficit, which reached 6.7 percent of economic output in December quarter - mainly driven by crude oil and gold imports - and is the government's biggest economic headache.

(Reporting by Manoj Kumar & Rajesh Singh; Writing by Subhadip Sircar; Additional reporting by Suvasree DeyChowdhury; Editing by Kim Coghill, John Stonestreet)

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

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