An Indian company that provides a bank guarantee (BG) against a loan taken by a subsidiary abroad will now have to pay tax here for standing guarantee for its associate.
The transfer pricing regime, which came into force in 2001 to check loss of revenue to the government during cross-border deals involving Indian firms, has raised the demand for Rs 10,000 crore.
Central Board of Direct Taxes (CBDT), the apex body that administers corporate and personal income-tax, expects a 10-15% year-on-year increase in collections by December 15, the last date for paying the third installment of advance tax, according to CBDT chairman SSN Moorthy.
In a decision that could impact companies with operations in the north-east, Jammu & Kashmir and Himachal Pradesh, a tax tribunal in Amritsar has ruled recently that such entities will be liable to pay tax on Central excise duty refunds.
Direct tax collections in the period April to November this fiscal grew by just 2.4% but the revenue department is now hoping to improve upon this given the better-than-expected growth in gross domestic product or GDP during the quarter to September 2009.
After telecom giant Vodafone, which was served a show-cause notice in October over its $11-bn acquisition of Hutch Essar, it’s now the turn of beer major SABMiller to face the heat from the Indian income-tax authority.
Indian spirit cos, who export IMFL brands to Dubai, are not overtly worried over the brewing fin crisis there. Who's who in Dubai's corp map | Full Coverage: Dubai crisis
To ensure impartiality in adjudication of transfer pricing disputes, the CBDT has decided that commissioners associated with transfer pricing orders will not be part of the alternate dispute resolution panel.
A recent tax tribunal order clarified that the exemption available for infrastructure development cannot be extended to contractors or sub-contractors.
The government plans to set up eight panels consisting of senior income-tax officials to quickly resolve disputes over cross-border taxation.
- No blogs yet have been written by the author, we’re sure the author will contribute one soon