Sept. 2 - The Direct Taxes Code (DTC) Bill is suggesting that profit-linked incentives can be replaced with investment-linked incentives for businesses that currently enjoy tax cuts.
If the proposal is approved, this may change incentives for special economic zone developers and businesses dealing with power, infrastructure, food processing, hotels and hospitals. Read the rest of this entry »
Sept. 1 - India’s Commissioner of Service Tax announced last month that online registrations for service tax assessees must be filed along with hard copies of the required documents.
The agency said that non-compliance of document requirements have led to delayed registrations with more than 1,000 cases not even making the effort to submit any kind of document at all. Read the rest of this entry »
Sept. 1 - Switzerland and India have agreed to make changes to their double taxation agreement (DTA).
The revisions will allow Indian authorities more access to specific information that will serve to cut down tax evasion. “The revised DTA contains provisions on the exchange of information in accordance with the Organization for Economic Cooperation and Development (OECD) standard, which were negotiated in line with the parameters decided by the Federal Council,” according to an official release from the Swiss Embassy. Read the rest of this entry »
Aug. 31 - The Indian government has decided to delay the implementation of the Direct Taxes Code (DTC) from April 1, 2011 to April 1, 2012 as part of efforts to improve preparations for the major change.
“The issue that the operation has been put on hold for a year is to allow all three categories [tax practitioner, taxpayer, and tax administrator] enough time to become adequately familiar with the new provisions in the DTC,” Revenue Secretary Sunil Mitra said in a statement. Read the rest of this entry »
Aug. 30 - India has decided to extend the tax rebate scheme available for exporters from the end of this year until June 30, 2011 while also adding other benefits to boost trade.
The new incentives will cost the government an estimated US$214 million with tax rebates to cover textiles, leather and jute exporters. Exporters will be able to continue applying for rebates on selected import taxes following the Duty Entitlement Passbook Scheme. Read the rest of this entry »
Aug. 30 - Special economic zone incentives will be exempted from the new direct tax code (DTC) until 2014 although there is a proposed 20 percent minimum alternative tax based on a version approved by the Cabinet last Thursday.
Despite the assurance, investors are still nervous about the changes and developers are unsure whether zones will attract enough investors despite the changes made to the DTC. The bill may still undergo revisions when it reaches Parliament for approval.
Aug. 27 - India’s Cabinet approved the Direct Taxes Code Bill yesterday, part of the government’s efforts to simplify procedures and cut taxes.
The DTC bill proposes decreasing tax rates while also cutting down on tax exemptions. Personal income tax exemption limits will be raised for employees earning up to Rs. 200,000 from the previous Rs. 160,000. Read the rest of this entry »
Aug. 25 – A rural business process outsourcing (BPO) policy was announced last Wednesday by the Tamil Nadu government that would give economic incentives for BPOs opening in rural areas.
“Tamil Nadu being a major Information and Communication Technology (ICT) Hub and with the ICT industry now expanding to Tier II, Tier III cities, and towns and indeed into villages in Tamil Nadu, it is indispensable to have a comprehensive Rural BPO policy to increase employment in the rural areas of state,” the government said in a statement. Read the rest of this entry »
Aug. 18 – India’s Income Tax Department has released new regulations on registering digital signatures for filing income tax returns effective beginning today.
The department has made revisions on its Digital Signature Certificate (DSC) registration process. The authorized signatory for the DSC has the option to follow the existing procedure or the new procedure highlighted below:
Aug. 12 - The Reserve Bank of India has released a discussion paper that talks about possibly opening the private banking sector to new players.
“The RBI clearly expresses its intent to expand the banking reach in the country while focusing on maintaining financial stability,” said CII director-general Chandrajit Banerjee. This will make bank capital requirements and intent now open to other competition. Read the rest of this entry »
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