Dec. 8 – The vendor has to accumulate tax from the payer who has purchased the following items:
Dec. 5 – After depreciating to a record low of 52.73 against the U.S. dollar on November 22, the Indian rupee (INR) rose in value to 51.206 per dollar on Friday to complete the currency’s first weekly advance since October.
The Indian rupee is under great stress as overseas investors are paring their exposure to Asia’s third-largest economy amid international uncertainty and mounting worries over the domestic economy.
On November 21 alone, overseas funds sold more than US$500 million worth of Indian-listed shares over the five trading sessions, reducing net inflows for 2011 to under US$300 million – a tiny sum compared with the record investments of more than US$29 billion experienced in 2010. The rupee has lost more than 10 percent of its value this year, making it one of the worst performing currencies in Asia. Continue reading
Dec. 1 – The permanent account number (PAN) card, issued by the income tax authorities, is now broadly used in financial transactions and one of the most convenient proofs for identity. Therefore, it is essential to keep the PAN card updated to reflect your current details.
The tax information network, operated by the National Securities Depository Limited (NSDL), provides this update service. This operation permits you to update details such as photograph, address and signature, but not the number itself. The PAN change request form is available online. Continue reading
Nov. 29 – Because of the current market situation, it has been decided by the government of India that interest rates on non-resident external (NRE) rupee term deposits for one to three years maturity should not go above the LIBOR/SWAP rates plus 275 basis points, as on the last working day of the previous month, for U.S. dollar of corresponding maturities. The interest rates will also be valid to deposits with the maturity period beyond three years and to deposits renewed after their present maturity period.
The interest rate on NRE deposits had been LIBOR/SWAP rates plus 175 basis points since November 15, 2008. Continue reading
Nov. 23 – India’s Provident Fund (PF) is a clear payment arrangement – where each employee contributes 12 percent of their pay on a monthly basis and the individual’s employer is accountable for an equal contribution – out of which a part is remitted towards the pension fund.
The employee may choose to submit an additional voluntary contribution. Though, the total worker input may not exceed 20 percent of pay. The employee may also request the employer to limit the amount of “pay” for computations of PF to 6,500 per month. This type of planning will be done at the early stages of employment. Continue reading
Nov. 14 – The government of Maharashtra has decided to make amendments to the rules and regulations in the Value Added Tax Rules (2005), to dispense with the condition of the previous publication thereof under the proviso to sub-section (4) of section 83 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005).
Therefore, in exercise of the powers presented by sub-sections (1), (2) and (3) read with the proviso to sub-section (4) of section 83 of the said Act, and of all other powers enabling it in this behalf, the Government of Maharashtra has made the following amendments. Continue reading
Nov. 2 – India’s Income Tax Department has initiated a separate permanent account number (PAN) application form for non-residents in which NRIs, PIOs and organizations wanting to set up an entity in India will have to provide additional information to the Central Board of Direct Taxes.
The new form – 49A – will assist the department in collecting information on non-Indian entities and individuals, like persons of Indian origin (PIOs), politically exposed persons (PEPs), persons linked to PEPs, and those involved in activities like gambling, gaming and lottery. Continue reading
Oct. 31 – India’s Ministry of Finance (Department of Revenues) issued a circular stating that the rate of exchange for conversion of each of the foreign currencies listed in the tables below. Both Schedule I and Schedule II annexed hereto into Indian currency or vice versa shall, with effect from November 1, 2011 be the rate mentioned against it in the corresponding entry, for the purpose of the said section, relating to imported and exported goods. Continue reading
Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm, please contact one of our specialists at india@dezshira.com, download our corporate brochure or visit at us www.dezshira.com
