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: cpt :: VAT Audit :: articles on VAT and GST in India :: list of goods taxed at 4% :: VAT RATES :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: TDS :: form 3cd :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ACCOUNTING STANDARD
 
 
News Headlines »
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions

Tax cover on premium remittance set to go
September, 29th 2009

In what could be a double whammy for the general insurance industry, the finance ministry has ruled out any relaxation on tax deducted on premium remitted to reinsures overseas, a senior government official said. Under the current taxation norms, this amount will not be calculated as expenditure, which would lead to further taxation.

The total amount that general insurers may have to shell out can exceed Rs 3,000 crore since on an average a general insurance company remits Rs 1,000 crore to overseas insurers. Currently, 13 general insurers are operating in the country, including four public sector companies.

Earlier, the IT department had slapped notices on companies such as Cholamandalam, Bharti AXA, United India and Royal Sundaram for non-payment of taxes.

Foreign reinsures are not willing to share the burden. This will lead to an increase of 40% in my reinsurance cost, which well be forced to pass on to our customers. This anomaly should be addressed at the earliest so as to put us on a par with other industries, said M Ramadoss, CMD, Oriental Insurance.

With the current TDS rate around 40%, insurance regulator Irda has already raised this issue with the finance ministry. This is a unique practice and weve sought clarification and exemptions for general insurers, said an Irda official, who did not wish to be quoted.

The finance ministry, however, has ruled out any blanket cover since such relaxation would raise similar demands from other sectors such as export and IT.

Besides, this remittance will not be treated as expenditure under Sec 40 (a) (i) since insurance companies failed to follow the procedure under Sec 195 (3), said a senior finance ministry official who wished to remain anonymous.

As per Sec 195, if a person wants to make payments to a non-resident and those payments are not explicitly declared exempt by the provisions of the IT Act, the person making the payments has to deduct tax at source and can free himself of the liability only if he gets the concurrence of the assessing officer.

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

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