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: VAT Audit :: articles on VAT and GST in India :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: VAT RATES :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment
 
 
Direct Tax »
 No change in gold seizure norms in proposed I-T Law amendments
 Direct tax collection will get a long-term boost, Franklin Templeton says
 I-T Act amendments upset calculations of cash hoarders
 Claim tax benefit on costs incurred to evict tenants
 The Integrated Goods And Services Tax Act, 2016
 Here’s what Income Tax Department did leading up to demonetisation
 I-T department asks IDS declarants to pay tax by November 30
 Cash trove tax drive dilemma
  CBDT halves Income Tax refunds issue timeline to 15 days for this fiscal
 CBDT signs four unilateral advance pricing agreements
 Central Board of Direct Taxes allowed Rs 4,500 crore of irregular benefits to infrastructure companies: CAG

Retrospective tax: I-T dept not to reopen cases prior to Apr 1, 2012, says Pranab Mukherjee
June, 06th 2012

Providing comfort to worried foreign investors, Finance Minister Pranab Mukherjee today said the Income Tax Department will not re-open cases where assessment proceedings had been finalised before April 1, 2012.

"I gave a commitment in Parliament with regard to retrospective amendments that CBDT ( Central Board of Direct Taxes) will issue a policy circular to clarify that in cases where assessment proceedings have become final before first day of April 2012... such cases shall not be reopened. Now CBDT has issued a circular in this regard", he said while inaugurating Pratyaksh Kar Bhawan here.

Mukherjee, in the Budget 2012-13, proposed to amend the Income Tax, 1961 with retrospective effect to tax Vodafone- type merger and acquisition deals done overseas that involve domestic assets.

These amendments, which came into effect with the President giving assent to the Finance Bill, 2012, had raised concerns among investors about re-opening of the old cases.

Referring to issues concerning transfer pricing, Mukherjee said he had constituted an advisory group to deal with international taxation, especially multi-level tax deduction at source (TDS) on software companies.

"I have constituted an advisory group to resolve various issues in the area of transfer pricing and international taxation. The group has held its first meeting on May 25.

"On advise of group and Nasscom, I have approved issuance of a circular to avoid multi-level TDS on software under section 194 J (of the Income Tax Act). This will remove hardship in case of software distributors," Mukherjee added.

Section 194-J of the I-T Act deals with fees for professional and technical services and covers royalty and non-competence fees.

Multinational companies resort to transfer pricing to shift profits from high-tax countries to low-tax jurisdictions with a view to reducing overall tax liability.

Talking about the economic issues, Mukherjee said, India is also confronting the same problems as the world economy and underlined the need for fiscal consolidation.

At the bottom of the global crisis is tendency to spend more than the capacity to spend, he said.

"As individual is expected to live within its means, the state is also expected to live within its means... There comes the question of fiscal consolidation to maintain the fiscal discipline through proper revenue realisation to disburse it judiciously and of course spend it judiciously," he added.

In the Budget 2012-13, Mukherjee had proposed to bring down the fiscal deficit to 5.1 per cent of the Gross Domestic Product (GDP) from 5.9 per cent during the previous fiscal.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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