Jan. 29 – The Indian government has officially announced the delay of the implementation of the new Goods and Services Tax (GST) with the new roll out date to be decided in April 1.
The head of the empowered group of state finance ministers, Asim Dasgupta, said in a statement that the April 1 deadline would not be enforced because of a host of unresolved issues surrounding the GST. Continue reading
Jan. 28 – India’s Central Board of Direct Taxes has announced the extension income tax return verification form (ITR-V) forms filed electronically on or after April 1, 2009 to March 31, 2010 or within a period of 120 days from the date of uploading of the electronic return data, whichever is later.
This announcement is related to an earlier circular dated May 2009, which allows taxpayers to file their income tax returns via internet without digital signature to submit a signed ITR-V form within a period of 30 days via post. Continue reading
Jan. 27 – To encourage more hotels to open prior to the Commonwealth Games, India is giving a five-year tax holiday for new hotels completed in the national capital region before March 31.
The rule will apply to 2, 3 and 4 star hotels and exclude 5 star hotels. An estimated 100,000 tourists are expected to arrive in New Delhi when the Commonwealth Games start on October 3. Currently, the city only has 10,000 hotel rooms and will need 30,000 more for the games. Continue reading
Jan. 26 – Indian tax authorities have introduced new rules that require foreign remittances to be reported before payment.
Every recipient of income is now required to provide a Permanent Account Number (PAN) or tax registration number to the payer beginning April 1, 2010. Should the recipient fail to provide a PAN, the withholding tax rate, if applicable, would be higher at the following rates: Continue reading
Jan. 25 – India and Finland have signed a revised version of the Double Taxation Avoidance Agreement (DTAA).
The new agreement will cut withholding tax rates on dividends to 10 percent from 15 percent in addition to setting a 10 percent rate for royalties and fees for technical services. It will expand the scope of the article on Exchange of Information to make it easier for both to provide knowledge following current international standards. Continue reading
Jan. 22 – India is considering relaxing norms for foreign direct investment to require that only projects worth about US$217 million to US$326 million will need final approval from the Cabinet Committee on Economic Affairs (CCEA).
Currently, projects worth more than US$130 million need to cleared with the Finance Minister, the Foreign Investment Promotion Board and the CCEA. If the proposal is approved the new conditions will probably be enforced after the introduction of the consolidated FDI policy framework set for April and projects worth below the threshold will no longer be required to gain CCE approval. Continue reading
Jan. 21 – India’s Income Tax Department recently released a circular detailing the tax deduction rates on salaries for the financial year 2009-2010.
As per the Finance Act, 2009, income tax is required to be deducted under Section 192 of the Income Tax Act of 1961 from income chargeable for the financial year 2009-2010 (i.e. assessment year 2010-2011).
Released on January 11, Circular No.1/2010 contains the income tax rates for 2009-2010. The circular also explains certain related provisions to the Income-tax Act including how tax is calculated, who is responsible for deducting tax, what income is chargeable and how it will be calculated. Continue reading
Jan. 21 – The Maharashtra government will begin charging an entertainment tax worth up to 25 percent of all ticket sales for T20 matches organized by the Indian Premier League (IPL).
IPL matches played within municipal limits will be charged a 25 percent tax and matches held outside municipal limits will be levied a 20 percent entertainment tax. Continue reading