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 INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: VAT Audit :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: due date for vat payment :: list of goods taxed at 4% :: form 3cd :: empanelment :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: VAT RATES :: Central Excise rule to resale the machines to a new company
 
 
« News Headlines »
 8 benefits you must know about this tax-saving mutual fund
 10 most important income-tax changes which will apply from April 1
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 Income Tax Rules That Will Change From April. See Details Herea
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax

Foreign NGOs may face fringe benefit tax
September, 29th 2006
The Indian Authority for Advance Rulings (AAR) has decided in a recent case that a foreign non-governmental organisation (NGO) is liable to pay fringe benefit tax (FBT) in India. The FBT will be payable even if there is no income tax payable on its total income in the country. NGOs by their nature are non-profit organisations and do not generate any income as defined by the Income Tax Act (ITA). AARs ruling means that a non-resident, whose income is not taxable under the ITA, is liable to pay FBT in India. Any NGO, which has not obtained tax exempt status in India, would be liable to pay FBT, irrespective of whether it is set up as a liaison office or a branch or a chapter in India and is tax exempt in its home country. While the ruling is specific to one case, it will set precedent for similar entities in the country. Foreign NGOs will have to seek a specific tax exempt status from the commissioner of income tax and will have to be registered with them. The registration requires the NGO to meet certain criteria like 85% of their corpus needs to be invested in development activities, etc, Archana Rajaram, associate at legal firm Nishith Desai & Associates, said. AAR has given a ruling in a case presented by the Population Council, a US NGO which works in the area of family planning and population control. The NGO enjoys tax exemption in the US under the Internal Revenue Code. The NGO claims that its activities in India fall within the approved objects for the purpose of granting exemption in the US. It has a regional office and a country head office India. Population Inc does not have exemption from income tax in India under Sections 10 (23C) or 12AA of the ITA. The NGO voluntarily sought a ruling from the AAR on whether it is required to pay FBT in India. The ruling seems to be discriminating against foreign NGOs and seems unfair in nature, if Indian NGOs are exempt then foreign NGOs should also be treated similarly, T P Ostwal, senior chartered accountant, said.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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