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 :: list of goods taxed at 4% :: form 3cd :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: TDS :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: ACCOUNTING STANDARDS :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt
 
 
Direct Tax »
 Hopeful of meeting direct tax collection target for this financial year: CBDT
 Bengaluru tops in income tax probes after demonetisation
 Income Tax department rejects black money disclosures of over Rs 2 lakh crore
 CBDT urges people to protect bank accounts from 'unscrupulous elements'
 No change in gold seizure norms in proposed I-T Law amendments
 Direct tax collection will get a long-term boost, Franklin Templeton says
 I-T Act amendments upset calculations of cash hoarders
 Claim tax benefit on costs incurred to evict tenants
 The Integrated Goods And Services Tax Act, 2016
 Here’s what Income Tax Department did leading up to demonetisation
 I-T department asks IDS declarants to pay tax by November 30

Rangachary panel moots easier tax rules for IT sector
September, 26th 2012

A high-level panel appointed by Prime Minister Manmohan Singh and chaired by former CBDT chairman N Rangachary has recommended a liberal tax regime for the IT sector. CNBC-TV18's Aakansha Sethi reports.

There were a lot of concerns about how the clause on royalty and connectivity charges would be implemented retrospectively. CNBC-TV18 learns that the Rangachary committee may have suggested a prospective amendment for Section 917 -- that is on the royalty and the connectivity charges -- which will impact the IT sector.

The second thing is that they have recommended tax exemption for onsite services and distinction between pure body shopping and onsite services. The panel says the CBDT should issue a circular -- pure body shopping will be taxable but otherwise onsite services will be exempt from taxation.

There were concerns that after the sunset of the Software Technology Parks of India (STPI) scheme, the IT industry may move to the special economic zones (SEZs). However, the panel has suggested that Minimum Alternate Tax (MAT) on SEZs should continue.

They have also said for development centers that transfer pricing should be based on a simple cost plus method. The Prime Minister's Office (PMO), which had set up the Rangachary committee, specifically said that India has to compete with other developing nations for a pie in the share of setting up of development centers on contract basis for research and development purposes and hence they had highlighted the emphasis of this.

Rangachary committee has put to rest tax-related concerns of the IT sector. The reports have been submitted to the ministry of finance. However, it remains to be seen when it would be made public and when the finance ministry would actually accept these recommendations.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

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