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: ACCOUNTING STANDARDS :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: VAT Audit :: TDS :: VAT RATES :: cpt :: empanelment
« Indirect Tax »
 Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016
 Tax department circular on indirect transfer put on hold
 Rising share of indirect taxes a step back to regressive era
 Double-digit Increase in Direct, Indirect Tax Collection, Says Arun Jaitley
 What is Direct tax?
 Indirect tax mop-up rate slows after note ban, Jaitley dismisses slowdown
 Tax buoyancy improves, thanks to indirect levy
 FM may unveil GST timeline, state compensation corpus on Feb 1
 Direct and indirect tax collection to exceed budget estimates this fiscal: Jaitley
 Startups brace up for legal war with Income Tax department
 Which investment is best suited for you to save tax

Shome committee to examine indirect transfer of Indian assets by non-resident tax payers
September, 03rd 2012

The government on Saturday has expanded the scope of the Parthasarathi Shome committee, enabling it to look into tax treatment of cases that involve indirect transfer of Indian assets such as the Vodafone-Hutchison deal in 2007.

The move came after a parliamentary panel blamed the retrospective amendments to the Income-Tax Act, along with the General Anti-Avoidance Rules (GAAR), for affecting investors sentiments.

Earlier, the prime minister had constituted the Shome panel to examine GAAR, proposed to be made effective from April 1, 2013, in the budget.
On August 6, the committee was also asked to examine taxation of non-resident transfer of assets where the underlying asset is in India, in the context of foreign institutional investors (FIIs) operating in India purely for portfolio investment. The Finance Ministry on Saturday announced expanding the terms of reference of the committee to include all non-resident tax payers instead of only FIIs.

Shome committee draft CBDT draft

The Standing Committee on Finance has presented its report on Current Economic Situation and Policy Options to Parliament on August 30. The Committee has inter alia found that the investment climate in the country has suffered a serious setback and investors confidence has been hit mainly because of the concerns over the impact of retrospective tax laws and new GAAR, the ministry said in a statement.

In the Finance Act, 2012, the government had made an amendment to bring indirect transfer of shares, wherever the underlying asset was in India, under the purview of taxation. The clarificatory amendment came into effect retrospectively from 1961 when the Income-Tax Act was enacted.

This amendment, along with a validation clause, empowered the government to revalidate a tax demand in cases like Vodafone where the Supreme Court had already decided in favour of the company. The tax department, however, has not yet sent a tax notice to Vodafone restoring its tax demand of about Rs 12,500 crore.

Finance Minister P Chidambaram had last month said the government would relook at retrospective amendments to the Income-Tax Act and corrective measures to regain the confidence of stakeholders.

I have also directed a review of tax provisions that have a retrospective effect in order to find fair and reasonable solutions to pending as well as likely disputes between the tax departments and the assesses concerned, he had told a press conference.

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

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