Mar. 10 - When India adopts the International Financial Reporting Standards (IFRS) in 2011, many changes will need to be made including ensuring that company staff are properly trained to apply the new rules.
Financial assets defined as a financial asset of one entity and a financial liability or equity instrument of another entity including cash, equity shares and a contractual right to receive cash or another financial asset will be computed for differently under the new IFRS. Read the rest of this entry »
Mar. 9 - A proposal to implement a construction tax under the new services tax will invariably hike prices for real estate projects still under construction or pending approval from authorities.
The tax would apply to the construction of complex service or commercial or industrial construction services as well as services offering premium prices based on a flat’s location in a multi-storey building. Read the rest of this entry »
Mar. 8 - The following are highlights of tax proposals submitted for the Karnataka State Budget 2010 -11 ranging from commercial taxes to luxury tax and entry tax.
Value added tax
- VAT exemption on paddy, rice, wheat, pulses and products of rice and wheat extended for one more year beginning January 4, 2010
- Tax on masala powder mixtures, macaroni, sports trophies, shields and medals, scrap metal, electric generators of less than 15 KVA, railway concrete sleepers, school bags costing up to Rs 200, reduced from 12.5 percent to 5 percent Read the rest of this entry »
Mar. 5 - There are several options available to the foreign investor when it comes to establishing a Representative style office in India. Listed below are three separate scenarios, which are dependent upon the type of business model you wish to run. Businesses looking at invoicing for services, import export or manufacturing in India are advised to look at private limited company formations (wholly foreign-owned) which we shall cover next week. However, for sourcing or certain other service industries, and for projects and short term manufacturing contracts, these structures will suffice as explained: Read the rest of this entry »
MUMBAI, Mar. 5 – India will soon adopt the International Financial Reporting Standards (IFRS) system with the government requiring that all companies shift to the new standards beginning April 1, 2011.
This is a radical change that companies will have to prepare for by making sure that their accountants are adequately trained with the new system. The system is expected to be adopted by India’s top listed companies by the set deadline and eventually by all companies in India by 2013. Read the rest of this entry »
Mar. 4 - Telecommunications companies with 3G services will no longer be allowed to avail of tax breaks found under Section 80 IA of the Income Tax Act.
The tax breaks under Section 80 IA are given to companies building infrastructure. In the telecommunications sector, companies can choose a 10 year period out of the first 15 years of operations to qualify for the tax benefits. Read the rest of this entry »
Mar. 1 - The budget finance bill that Indian Finance Minister Pranab Mukherjee presented on Friday to the India Parliament set out three objectives: move the country back on the path of high GDP growth of 9 percent with the aim of increasing towards double digit growth; consolidate recent gains in making the country’s development more inclusive; and address weaknesses in the government bureaucracy.
Mr. Mukhurjee stood by his commitment to tax reforms and to put in place by April 1, 2011, a new direct tax code. He also committed to introduce the long awaited goods and services tax from April 1, 2011. Below, we look at some of the changes to the tax code. Read the rest of this entry »
Feb. 25 - India’s Central Board of Excise and Customs (CBEC) has proposed widening the scope for service tax to include the entertainment business for the upcoming Union Budget 2010-11.
Currently, entertainment is separately taxed by states and as a service tax by the central government with no prevailing uniformity on taxation since taxes are paid on a case-to-case basis. Read the rest of this entry »
Feb. 24 - Foreign companies doing business in India will be levied tax on dividends, royalty and technical fees.
According to India’s Income Tax Department, income-tax payable shall be aggregate of:
- The amount of income-tax calculated on the amount of income by way of dividends 20a[other than dividends referred to in section 115-O], if any, included in the total income, at the rate of twenty percent Read the rest of this entry »
Feb. 23 - India’s credit rating may be raised from junk if finance minister Pranab Mukherjee provides a comprehensive plan to roll back the fiscal stimulus and cut the budget deficit this week, said Moody’s Investors Service.
“If we think the exit path is well articulated and well executed, the local currency rating could be upgraded,” Aninda Mitra, a Singapore-based sovereign analyst at Moody’s, said in a telephone interview with The Economic Times. Read the rest of this entry »
