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: due date for vat payment :: empanelment :: ACCOUNTING STANDARD :: VAT Audit :: ACCOUNTING STANDARDS :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: TDS :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« Service Tax »
 Cabinet clears 4 Bills, GST likely to roll out by July 1
 GST may also impact income tax collections: Experts
 Companies, consultants grope in the dark to meet GST deadline
 Cabinet approves GST, e-commerce cos to pay up to 1% tax
 Cabinet approves supporting GST legislations ahead of 1 July roll-out
 GST: Centralized assessment for service-oriented industries likely
 Tax department to calculate GST’s impact on inflation
 Entrepreneurs are all set to give a red carpet welcome to GST
 GST success depends on preparedness of businesses
 GST few steps away from becoming reality, but what’s in it for Dalal Street?
 Input tax credit - Matching / Mismatching Concept in Present Tax Laws vis-à-vis GST Laws

Now, services to attract 10 per cent tax under revised DTAA
May, 16th 2016

The amended India-Mauritius tax treaty has inserted a new clause allowing source-based taxation at 10 per cent on fees paid for technical and consultancy services .

Besides, services-based permanent establishment has been introduced under which the business income of an employee of a foreign company in India will be taxable if he or she spends 90 days in India in the past 12 months.

The revision provides for 10 per cent tax on gross basis for fees for technical services ( FTS ) in the source state, according to the text of the treaty amendment signed on Tuesday.

So far, a company or entity was deemed to have a permanent establishment (PE) in India if it had a place of business or site or office building or factory workshop.

Tax experts said that now if a company's employees spend 90 man days in India, then the companies' business income in India will be taxable at 40 per cent.

"Through the inclusion of the services PE clause, the tax net has been widened," an expert said, adding that tax credit can be obtained.

The tax will be at the highest applicable rate between the two countries.

As per the protocol, the definition of PE has been enlarged to include "furnishing of services, including consultancy services, by an enterprise through employees or other personnel" for more than 90 days within any 12 months.

The amendment to the more than three-decade old treaty that aims to plug a loophole which allowed investors to use the Mauritius route to evade taxes on capital gains in India also gives right to the source country to levy 7.5 per cent tax on interest earned.

The original treaty of August 1983 provided exemption on interest received by banks in the source state when they are residents of the other country.

The amendment removes this exemption, as per the text of the revised protocol.

However, exemption would continue to be granted in the case of interest arising from debt claims existing on or before March 31, 2017 provided it is derived and beneficially owned by any bank resident of the other country carrying on bonafide banking business in the source state.

The amendment, which give India the right to tax short-term capital gains from April 1, 2017, also inserts a new article allows the two nations to lend assistance to each other in collection of taxes.

The protocol inserts new clause allowing source-based taxation of capital gains on alienation of shares. Companies routing funds into India through Mauritius from the next fiscal will have to pay short-term capital gains tax at half the rate prevailing during a two-year transition period. The levy is currently at 15 per cent.

 
 
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