Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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: due date for vat payment :: TDS :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ACCOUNTING STANDARD :: VAT Audit :: cpt :: form 3cd :: VAT RATES :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India
« Direct Tax »
 CBEC Issued 41 Notifications In A Day To Give Effect To GST Council Decisions In 22nd Meet
 CBEC Issued 41 Notifications In A Day To Give Effect To GST Council Decisions In 22nd Meet
 CBEC Issued 41 Notifications In A Day To Give Effect To GST Council Decisions In 22nd Meet
 CBDT seeks suggestions on framing of rules on country-by-country reporting
 Is it the end of the road for tax havens?
 Government Collects Rs 3.86 Lakh Crore as Direct Tax Till September
 TDS IS PART OF SUM PAYABLE TO PAYEE and is trading liability- interest paid for delayed deposit of TDS is allowable expenditure
 Deductions Under Section 10b Of Income Tax Act, 1961 To Export
 CBDT signs 2 more APAs with taxpayers in September
 PM Narendra Modi seeks simpler rules to raise direct tax share from '07 low
  E-filing income tax return: How individuals can upload any ITR using excel utility

Recommendations on GAAR, IT taxation may become part of DTC
August, 23rd 2012

The governments take on recommendations to be given by the Parthasarthi Shome Committee on the General Anti-Avoidance Rules (GAAR) and the N Rangachary panel on taxation on IT sectors may be incorporated in the proposed Direct Taxes Code (DTC).

The recommendations by both Shome and Rangachary panels are likely to come up as part of the DTC Bill, officials in the finance ministry told Business Standard.

Meanwhile, the DTC Bill was not likely to be tabled in the ongoing monsoon session of Parliament, the officials said. Parliaments standing committee on finance has already submitted its report on DTC.

Shome Panel recommendations on GAAR and Rangachary panel on IT taxation likely to come as part of DTC
DTC bill not being tabled in the ongoing monsoon session. Parliaments standing committees report submitted its report on DTC

Vast differences between the first draft on DTC initiated by then Finance Minister P Chidambaram and the Bill, tabled in Parliament by Pranab Mukherjee
First draft suggests 10% personal income tax on Rs 1.6-10 lakh of annual income, 20% on Rs 10-25 lakh, 30% on above Rs 25 lakh

DTC bill proposes 10% tax on Rs 2-5 lakh, 20% on Rs 5-10 lakh, 30% on more than Rs 10 lakh
Standing committee recommends 10% on Rs 3-10 lakh, 20% on Rs 10-20lakh, 30% on more than Rs 20 lakh
Officials, however, did not rule out some important income tax provisions coming up in the winter session of Parliament as well. The Monsoon session is slated to conclude on September 8.

Finance Minister P Chidambaram has already directed a review of retrospective amendments to the Income Tax Act. Besides, the terms of reference of the Shome panel has been extended to cover the impact of the retrospective amendments on foreign institutional investors (FIIs).

GAAR, announced in the Budget for 2012-13, was opposed by the industry. In fact, Mauritius Foreign Affairs and Trade Minister Arvin Bolell as well as Singapore Prime Minister Lee Hsien Loong pitched for predictability of laws. As such, Prime Minister Manmohan Singh, holding charge of the finance ministry portfolio after Pranab Mukherjee resigned to contest the Presidential fray, set up a panel under the chairmanship of tax expert Shome to review GAAR.

This was done, even as the Finance Ministry had come out with draft guidelines on GAAR. The draft guidelines had turned down foreign institutional investors demand that capital market transactions be exempted from the proposed GAAR, but tried to soften the blow by clarifying that non-resident investors among FIIs would not be taxed. It means that liability to pay tax would not fall on participatory notes holders, but on FIIs.

GAAR is basically aimed at taxing those business structures whose primary aim is not commercial but tax avoidance. It could even override tax treaties, a provision opposed by Mauritius.

The Shome Committee has been given time till August 31 to come out with the second draft on GAAR for the feedback from stakeholders.

Later, its ambit was enlarged to review the impact of retrospective amendments on FIIs. These amendments were carried out in the Finance Bill to bring overseas deals like Vodafone where underlying assets are in India under the tax net. The amendments were done after Supreme Court had ruled that the Income Tax department has no jurisdiction to tax Vodafone for its 11 billion dollar deal to buy stake in Hutchison Essar (now Vodafone India.)

After the industry objected to retrospective amendments as back as 1962, the government announced review of the amendments. But, that happened only after Pranab Mukherjee quit the Finance Ministry. The work on standing committees recommendations on DTC Bill has not started yet.

There are vast differences between the first draft bill initiated by Chidambaram and the bill tabled by then Finance Minister Pranab Mukherjee.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

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