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: articles on VAT and GST in India :: VAT RATES :: form 3cd :: VAT Audit :: empanelment :: list of goods taxed at 4% :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: cpt :: ACCOUNTING STANDARDS :: TDS
 
 
« Service Tax »
 CBEC to be renamed, reorganised for GST regime
  GST debate now continues on categorisation of products
 GST coming soon, but don’t expect quick benefits; rich valuation to stall stocks
 FM Arun Jaitley underlines urgency to pass GST bills in this Parliament session
 Government may table 4 GST bills in Parliament today
 Applicability Of Gst Law On Educational Institutions
 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

http://economictimes.indiatimes.com/news/economy/finance/business-trusts-to-get-tax-breaks-still-revenue-accretive-for-government/articleshow/39758048.cms
August, 07th 2014

As Sebi readies to introduce the concept of Real Estate and Infrastructure Investment Trusts in the country, the government has decided to provide significant tax benefits for these listed business trusts.

The proposed tax exemptions and benefits notwithstanding, these new investment instruments would still be 'revenue accretive' for the government in the form of additional taxes.

Among other exemptions, any capital gains tax on units of InvITs would be levied only at the time of ultimate disposal of the units of the sponsor under the new norms, sources said.

However, the sponsor would not be entitled the concessional STT-based capital gains tax regime at the time of ultimate disposal of the units of the business trust.

STT refers to Securities Transaction Tax, a small tax amount applicable to all transactions in securities markets.

In another benefit, any dividend would be tax exempt in the hands of the business trust and the dividend component of the income distributed by the business trust would also be exempt in the hands of unit holder.

The portfolio SPV distributing dividend to business trusts, however, will be subject to Dividend Distribution Tax.

The interest received by REITs or InvITs from portfolio SPV (Special Purpose Vehicle) would be given a complete tax pass-through, while the portfolio SPV would also be exempted from withholding tax on interest paid to the business trust.

Also, the interest from portfolio SPV would not be taxable in the hands of the business trust.

With regard to capital gains made by the business trust, it would be taxable on any capital gains earned by it on disposal of any assets, depending on whether the gains are short of long term in nature.

However, the capital gains component of the distributed income would be exempt in the hands of the unit holders.

The tax treatment for any transfer of listed units of the business trusts by investors on an exchange would be on the lines of the listed equity -- that is long term capital gains on such transfers would be exempt and the short-term capital gains would be taxable at the rate of 15 per cent, provided STT is paid on the transfer of such units.

For any external commercial borrowing by the business trust, a withholding tax of 5 per cent on interest payments to non-resident lenders would be levied.

To make REITs and InvITs more attractive, Sebi has already to incorporate many industry suggestions, including for reduction in the minimum asset size to Rs 500 crore and to allow foreign investors at IPO and later stages.

The final regulations are likely to be considered for approval by the Sebi board this Sunday.

The new norms would enable listing and trading of REITs and InvITs as any other security on stock exchanges and also help create new avenues for raising of funds by real estate and infrastructure companies, respectively.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

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