Other Briefings
Minimum Alternate Tax Not Applicable to Companies with No Establishment in India
Aug. 11 – A verdict made by the Authority for Advance Ruling (AAR) in July has confirmed that minimum alternate tax (MAT) is not applicable to foreign companies with no permanent establishment in the country. The verdict was made regarding the case of Mauritius-based Praxair Pacific when it wanted to verify with AAR if the […]
India to Resolve Stalled South Korean Steelmaker Project
Aug. 10 – Authorities have committed to help solve the stalled South Korean Posco project due to violations of the Forest Rights Act. The US$12 billion steel project located in eastern India’s Jagatsinghpur, Orissa is the largest foreign direct investment project made in the country to date. Work on the project was temporarily stopped after […]
India’s Tax Treaty with Mauritius Leading to Revenue Losses
Aug. 9 – India’s tax treaty with Mauritius is leading to revenue losses amounting to at least Rs. 20 billion annually. Under India’s Double Taxation Avoidance Agreement (DTAA) with Mauritius, capital gains from the sale of shares will be taxed in the investor’s country of residence. This works in favor of companies based in Mauritius […]
New Rule to Require Shareholder Disclosure Before Listing
Aug. 9 – The Securities and Exchange Board of India (Sebi) announced a new rule that will require companies to disclose shareholding details one day before listing to give investors more information and improve transparency. Changes were also made regarding how depository receipts are reported by specifying if holdings are “promoter/promoter group” and “non-promoter.” “The […]
Japanese Conglomerate to Invest in SEZ, Steel Plant in Gujarat
Aug. 6 – Japanese conglomerate Mitsui and Co. Ltd. and Indian industrial conglomerate Ruchi Group have announced plans to establish a special economic zone that will include a US$1 billion steel complex in western India’s Tagdi village in Kutch, Gujarat. The joint venture, Indian Steel Corp. Ltd. (ISC), aims to expand steel service centers around […]
India Service Tax to be Levied at Invoicing
Aug. 6 – As part of India’s new Goods and Services Tax (GST), India is considering switching to a time of supply system that will allow service tax to be levied at the point of raising invoice instead of when the amount is received. “There will be a change from cash system to accrual system. […]
India Sets US$25,000 Minimum Wage for Foreign IT Hires
Aug. 5 – Authorities have revised minimum wage requirements for foreign employees hired in the IT sector to US$25,000 a year or about US$2,083 a month. “Foreigners can apply for jobs in the IT sector provided Indian firms pay each of them a minimum annual salary of US$25,000,” a senior home ministry official told Mint. […]
Court Ruling Says Payment in Kind Also Subject to Tax
Aug. 4 – A recent Supreme Court decision has ruled that payment made in kind will also be subject to taxes in India. This was based on an appeal made in court by local company Kanchanganga Sea Foods regarding its payment in kind to Hong Kong-based company Eastwide Shipping for lending the use of vessels […]
