News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Direct Tax »
 A Step-By-Step Guide For Taxpayers How to Upload Your TDS Statement
  Notification No. 10/2020 Central Board Of Direct Taxes
 Pawan Kumar Dua C/o. RRA Tax India, D-28, South Extension, Part-1 Vs. ACIT Central Circle-28 New Delhi
 Harvansh Chawla, C-17, Nizamuddin East, Dekhi Vs. ACIT, Circle-5, Room No.362, E-2, ARA Centre, 3rd Floor, Jhandewalan Extn. New Delh
 CBDT notifies Form 10-IC and Form 10-ID for Concessional Corporate Taxationa
 9 things new parents need to know before filing their taxes in 2020
 Last Day To File Belated ITR With Less Penalty, E-Verify Return
 Notification No.05/2020 - Central Board Of Indirect Taxes And Customs
 CBDT says income tax shortfall 'non-neogtiable', instructs top brass to pull up their socks to meet FY20 target
 Are you really saving your taxes? Know your Tax slabs & review your investment plans now!
 Notification No.05/2020 Central Board Of Indirect Taxes And Customs

CBDT draft notice on computing tax liability of foreign firms
June, 16th 2017

The Central Board of Direct Taxes (CBDT) has issued a draft notification detailing the computation process for various parameters involved in arriving at the tax liability of a foreign company, in case the company qualifies to becomes a resident in India for the first time under the rules of Place of Effective Management (PoEM).

The Central Board of Direct Taxes (CBDT) has issued a draft notification detailing the computation process for various parameters involved in arriving at the tax liability of a foreign company, in case the company qualifies to becomes a resident in India for the first time under the rules of Place of Effective Management (PoEM). Despite becoming a resident of India, the foreign company will continue to be treated as a foreign entity in the first year of the residency. This means that the tax rate in case of foreign company, which is 40%, will continue to ensure no revenue is lost. “The circular has dealt in details with the issues that a foreign company is likely to face in its first year of constituting a resident in India owing to its PoEM being in India,” Rakesh Nangia, managing partner, Nangia & Co, said. The notification details the methodology for arriving at total income, unabsorbed depreciation, set off or carry forward and set off of losses, collection and recovery and special provisions relating to avoidance of tax for such foreign entities.“CBDT has ensured that the computation provisions are in place to give a meaningful implementation to the provisions of PoEM, which will also help in avoiding unwarranted litigation on these issues,” Nangia added.

For instance, the tax record of such a company filed in its country of residence will be taken as the basis for arriving at the written down value (WDV) of the depreciable assets. However, if the company is not assessed to tax by the jurisdiction of its residence, the WDV will be the same as that in the company’s books.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting