/ Business

GST Could Trip Make In India For Smartphones

India’s success in making firms such as Samsung, Xiaomi, and Micromax to locally produce phones could become a cropper, once the Goods and Services Tax (GST) comes into effect, as the new expats taxation regime could neutralise the cost benefits to make these phones in India in taxation services for expatriates
Since the last two years, India has been able to attract 40 global smartphone makers in the country, after it tweaked norms that made cheaper to make phones in …

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/ Goods and Services Tax (GST)

Tax Experts Hope Goods And Services Tax Will Pep Up GDP Growth By 2%

Tax experts on Sunday said there will be a uniform andone-nation-one-tax in the form of Goods and Services Tax(GST) proposed from April 1. The experts guided CAs on GST during a regional tax conference held here jointly by the Nashik and Jalgaon branches of TheInstitute of Chartered Accountants of India (ICAI).
Bimal Jain, chairman, Indirect Tax Committee of PHD Chamber of Commerce, said, “The present indirect taxes in India have driven business to structure and model their supply chain and …

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/ Direct Taxation

Two More Advance Pricing Agreements Signed By The CBDT

The Central Board of Direct Taxes (CBDT) has closed the year 2016 by entering into two more unilateral Advance Pricing Agreements (APAs) today. The APA Scheme was introduced in the Income-tax Act in 2012 and the “Rollback” provisions were introduced in 2014. The scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and setting the prices of international transactions in advance in chartered accountant firms in mumbai. Since its …

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/ Business

Ordinance Likely to Amend Payment of Wages Act.

A mid currency crunch, the government is mulling over bringing in an ordinance to amend the payment of wages Act for allowing business and industrial establishments to pay salaries through Cheques or by electronic modes.
“The government may bring an ordinance to amend Payment of Wage Act, 1936, to nudge employers of certain industries to make payment through electronic modes and cheques,” a source said Direct foreign investment in India.
The source further said, “The bill for the purpose …

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/ Direct Taxation

More Online Services May Face Google Tax

The government is likely to expand the scope of the equalisation levy, the so-called “Google tax”, to bring more digital transactions into the tax net in the upcoming budget to curb tax avoidance by multinational chartered accountant firms in mumbai. Online sales of goods and services; downloading of software, songs, movies and books; and online consumption of news are among the services that the government may consider for the levy.
“Internationally the trend is to bring more digital transactions …

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/ Direct Taxation

Benami Property Transactions on I-T radar

With the validity date ended on Friday for normal exchange of old currency notes, the income tax (I-T) department is working on ‘property index cards’ featuring high value realty transactions in the past three years. They’ve also outlined stringent action against those reportedly having deposited unaccounted old currency in someone else’s bank account. Officials are believed to have directed property dealers and registration authorities to give lists of top property deals in descending order of valuation over three years in
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/ Direct Taxation

India, Singapore Revise Tax Treaty

The government signed a pact with its Singapore counterpart on 30th Dec, 2016, amending their decade-old tax treaty, gaining indirect taxation in India rights over capital gains. This is the third double taxation avoidance agreement (DTAA) amended so far this financial year with a zero or low tax jurisdiction. The other two were with Mauritius and Cyprus. According to tax consultants in India, Mauritius would be the most attractive source of investments into India for debt funds and Singapore …

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/ Business

It ministry asks Telcos for Cashless Action Plan

Ravi Shankar Prasad, minister of electronics and information technology, has given a week to mobile telephone service providers for a plan on how to increase cashless transactions, sources said. At a meeting on Friday, Prasad apparently met representatives from Jio, Airtel, Idea, Vodafone and BSNL, among others. Apart from promoting of digital payments, the minister asked them to find ways of making it possible for feature phones to pay and accept e-payments.“The service providers are on-board with the idea and
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/ Direct Taxation

Royalty Paid to AE wasn’t Capital Exp, as It was Paid for Use of Trademark and Not For Its Acquistion

Where assessee-company made payment of royalty to its AE for mere use of trademark, that too by means of non-exclusive licence, it was to be allowed as revenue expenditure while determining ALP.
Assessee-company (GKN Driveline (India) Ltd.) was engaged in business of manufacture and sale of Constant Velocity Joints (CVJ) – During relevant year, assessee made payment of royalty to AE for use of its trademark in respect of manufactured products – In transfer pricing proceedings, TPO taking a view …

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/ Business

Now Foreign Investors Can Invest in Unlisted Corporate Debt Securities

As announced in the Union Budget 2016-17, it has now been decided to expand the investment basket of eligible instruments for investment by FPIs under the corporate bond route to include the following:

(i) Unlisted corporate debt securities in the form of non-convertible debentures/bonds issued by public or private companies subject to minimum residual maturity of three years and end use-restriction on direct foreign investment in india real estate business, capital market and purchase of land. The expression ‘Real Estate …

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