Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: VAT RATES :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: VAT Audit :: TDS
 
 
« Direct Tax »
 CBDT gameplan to enhance TDS collection
 Don't curry political favours for transfers, CBDT tells taxmen
 CBDT: GST not to be added for TDS computation
 Five interest incomes you are likely to forget to include in your tax return
 GST not to be added for TDS computation
 GST not to be added for TDS computation
 Income Tax Return (ITR) Filing: Common Mistakes That Could Get You A Tax Notice
 Income Tax department asks tax practitioners to register entities separately
 Last Date To File Income Tax Return. Here Are The Details
 New tax regime will deliver a mixed bag with some items turning costly
 New members at CBEC, CBDT

Direct tax code needs overhaul: Experts
September, 22nd 2009

A raft of tax experts and professional bodies including chambers of commerce across the country thinks virtually every line of the new direct tax code may have to be rewritten to shield domestic companies and their operations, both in India and overseas.

The new code will have an effect on Indias IT companies, especially those with business operations abroad, said Himanshu Patel, senior tax expert with Deloitte, at a meeting organised by the Eastern Regional Council of the Institute of Company Secretaries of India (ICSI- EIRC).

According to Mr Patel, the transfer pricing mechanism provisions will have a negative impact on international transactions unless these are revised sufficiently to deal with some of the crucial issues like period of agreement and threshold equity limits.

Stock market stalwarts like Rakesh Jhunjhunwala and Shankar Sharma too have expressed their fear about outflows of foreign funds by the end of the current financial year if the new Tax Code sought to be in place by April 2011 is not revised, a tax expert pointed out.

ICSI-EIRC chairman Ashok Pareek thinks that the draft direct tax code, which is doing the rounds across the length and breadth of the country, is likely to take time before it is finalised.

Views and comments from various sections will have to be taken into account by the ministry before they can introduce the final version in Parliament, he added.

The code has, for the first time, introduced the advance pricing agreement in which the definition of associated enterprises has been made more stringent by lowering some of the important threshold limits currently existing under the scope of transfer pricing regulations. While voting power thresholds have been lowered to 10% from 26% earlier, loan threshold has been reduced to 26% compared to 51% prescribed earlier to qualify entities as associated enterprises.

Indeed, the previous threshold limits on shareholding, loan, directorship etc, Mr Patel explained, was linked to a reasonable control over a business entity.

For instance, an equity holding of 26% gives the shareholder power to block special resolutions. A 10% holding in a foreign entity may not give a shareholder even minimum control over its activities.

To consider such an entity as an associated enterprise for the purpose of taxation under transfer pricing regulations, is certainly unfair, he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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