Foreign companies whose place of effective control are in India will have to shell out 40 per cent corporation tax against 30 per cent levied on domestic firms. The Central Board of Direct Taxes has come out with clarifications for place of effective management (PoeM)...
Direct Taxation
Ecomm Cos may Need to Prepare for Withholding Tax in 2 Months
India Inc, in particular ecommerce platforms such as Amazon and Flipkart, may need to prepare for withholding tax provisions in two months under the goods and services tax (GST). The tax deducted at source (TDS) and tax collected at source (TCS) provisions had been...
Start-ups get partial exemption from angel tax
Since a start-up gets high investment because of its idea, applying Section 56(2)(viib) to recover the tax on pretext of inflated valuation would be prejudicial to the interest of the start-up. Startups to file new Form-1 and Form-2 in order to claim tax incentives....
LTCG tax benefits for unlisted stocks
The Lok Sabha on Wednesday passed the Finance Bill 2018, allowing the benefit of inflation adjustments to stocks that were unlisted till January 31 while levying long-term capital gains (LTCG) tax. The move might provide tax benefits to shareholders of the National...
Pre-2016 Startups may Get Breather from Angel Tax
India could shield startups floated prior to 2016 from the socalled angel tax to boost entrepreneurship in the country. The finance ministry has started discussions with the Department of Industrial Policy and Promotion (DIPP) on the certification of genuine startups...
CBDT Signs Bilateral APA With Japanese Firm
The Central Board of Direct Taxes has signed a bilateral Advance Pricing Agreement (APA) with the subsidiary of a Japanese company as it looks to reduce litigations by providing certainty in transfer pricing. The total number of bilateral APAs signed with various...
Cash Transaction Limit Lowered To Rs 2 lakh.
The Rs 3-lakh limit proposed for cash payments in the Budget for 2017-18 would be brought down to Rs 2 lakh as part of an unprecedented 40 amendments to the Finance Bill. Finance Minister Arun Jaitley moved the amendments in the lower House on Tuesday. This is aimed...
Tax Free Limit For Qraturity Hiked To Rs. 2 Million
Formal sector workers may soon be eligible for up to Rs 2 million tax-free gratuity as central trade unions have agreed on the proposal in a tripartite consultation with the Labour Ministry. The central trade unions have agreed on doubling gratuity amount ceiling as...
Poem Rules Only For COS Earning Over Rs 50 CR.
The Central Board of Direct Taxes, the apex direct taxes body, has issued a circular clarifying that the provisions relating to place of effective management (POEM) will apply to companies with over Rs. 50-crore turnover. The clarificatory circular comes after a CBDT...