Other Briefings
India to Consider Taxing Subsidiary Mergers
Sept. 15 – Government revenue authorities in New Delhi are considering taxing subsidiaries merging with their parent companies with a stamp duty ranging from 0.15 percent to 6 percent. This may mean that the Indian Stamps Act 1899 that exempts stamp duty when a subsidiary merges with its parent company risks being dissolved when the […]
Vodafone Tax Case Sets Landmark Precedent
Sept. 13 – The Mumbai High Court ruling on the Vodafone case is expected to set a landmark precedent for cross-border deals in the country. It marks the first time that an Indian court has ruled in favor of tax authorities, allowing them to charge a foreign company capital gains tax for a transaction that […]
Court Ruling: Overseas Payments Not Liable to Tax
Sept. 10 – India-based companies are not liable to deduct tax on overseas payments according to the latest Supreme Court on the subject. This overturns the income-tax department’s earlier decision on the contrary and is a huge relief for many local and foreign companies based in India. More importantly, it formally clarifies the tax law […]
India to Monitor Internet, Telecom User Data
Sept. 3 – Indian authorities are requiring communication service companies like Google and Skype to allow access to user data within two months as part of government efforts to tighten security. The news comes after authorities threatened to ban Blackberry use in India if Research In Motion did not give them the ability to monitor […]
New Tax Code Proposes Investment-Linked Incentives
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.
Commissioner of Service Tax Issues Notice on Online Registration
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 […]
India, Switzerland Agree to Change Tax Pact
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 […]
Direct Taxes Code Delayed to 2012
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 […]
