Tax & Accounting

After GST, Services Sector Face New Challenges in India

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By Vasundhara Rastogi

The service sector is a key driver of economic growth in India, contributing to over 50 percent of the country’s overall Gross Domestic Product (GDP). Key services in terms of revenue generation include business activities such as trade, hotel and restaurants, real estate, logistics and warehousing, finance, and insurance.

The Goods and Services Tax (GST) launched on July 1, 2017 is likely to have a significant impact on the growth of these services. This is because it substantially affects the valuation of the service categories, their operations in each state via multiple returns filing, and stringent tax compliance.

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Impact of GST on Imports and Exports in India

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By Vasundhara Rastogi

GST on Imports and Exports in India

The new goods and services tax (GST), launched on July 1, 2017, will change how business is done in India. It is likely to have a significant impact on the international trade of goods through changes in the structure of import and export taxation, and the withdrawal of various indirect taxes and exemptions.

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GST Returns Filing in India: All You Need to Know

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By Vasundhara Rastogi

GST Returns In India

The Goods and Services Tax (GST) will come into effect from July 1, 2017.

Under the new indirect tax system, every business and professional entity in India with an annual turnover exceeding US$31,054 (Rs 20 lakh), and US$15,527 (Rs 10 lakh) in the north-eastern states of India, will be required to obtain GST registration. 

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Indian Government Notifies New Safe Harbor Rules

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By Vasundhara Rastogi

On June 7, 2017, the Central Board of Direct Taxes (CBDT) in India revamped safe harbor rules to align safe harbor margins with industry standards and enlarge the scope of international transactions under it. ‘Safe harbor’ in tax parlance refers to the circumstances under which income-tax authorities accept the transfer price declared by the company, at which it transacts with its subsidiaries or an associated company, without any question.

The new safe harbor rules come into effect from April 1, 2017, and will continue to remain in force for two years, up to the assessment year (AY) 2019-2020. 

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Capital Gains Tax in India: An Explainer

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By Vasundhara Rastogi

In India, any profit or gain arising from the sale of a capital asset is deemed as capital gains and is charged to tax under the Income-tax Act, 1961.  According to the Act, a capital asset is any kind of property held by an individual, such as buildings, lands, bonds, equities, debentures, and jewelry. It excludes stock-in-trade, agricultural land, and certain specified bonds.  

Profits arising from the sale of capital assets is classified as Short-Term Capital Gains (STCG) or Long-Term Capital Gains (LTCG), depending on the period for which the capital asset has been held. 

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Direct Taxes in India Explained

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By Vasundhara Rastogi

In India, there are two types of taxes levied by the government: Direct taxes and indirect taxes. Indirect taxes are levies imposed on goods and services, whereas direct taxes are levied on the income and profits of individuals and organizations. Direct taxes are directly paid to the government by the tax payer.

Income tax is a direct tax, paid on personal income by an individual or a company, to the federal government.

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India’s GST Rates for Goods and Services Released ahead of July 1 Implementation

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By Dezan Shira & Associates

With the Goods and Services Tax (GST) set to be rolled out on July 1, the GST Council finally released its tax schedule for goods and services.

During the Council’s 14th session held from May 18 to 19, 1,211 goods and various service categories were fitted into the tax slabs – 5, 12, 18, and 28 percent.

In addition, the GST Council finalized the goods and services that will be exempted from paying GST.

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Calculating Expatriate Income Tax in India

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By Dezan Shira & Associates

Editor: Tracie Sloop Frost

In India, an individual’s income is taxed at graduated rates, depending on his/her residential status in India and income level. Non-employment income is taxed at a variable rate according to income type. In this article, we outline the rates and calculation methods for both income sources, and summarize common deductions and inclusions in income for expatriates working in India.

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