Other Briefings
How Are Non-Residents Taxed on Royalties and Fees for Technical Services?
Mar. 29 – When a non-resident earns any income in India by way of royalties or fees for technical services, they are liable to pay the relevant taxes. The official definition of royalties and fees, as stipulated by Section 9 of the Income Tax Act 1961, can be found below.
Service Tax in India
By Himanshu Joshi, Accounts Associate, Dezan Shira & Associates Mar. 27 – Service taxes were first introduced to India through the Finance Act (1994) in the 1994-95 Union Budget, however the service tax rules have gone through various changes since their introduction. There was previously an exhaustive list of services that were subject to service tax, […]
India’s Double Taxation Avoidance Agreements
Mar. 26 – Double taxation avoidance agreements (DTAs or DTAAs) aim to prevent the same income from being taxed by two or more states, while also eliminating tax evasion and encouraging cross-border trade efficiency. DTAs prevent double taxation by allowing the tax paid in one of the two countries to be offset against tax payable […]
India Cuts Rates, Rupee Weakens
Mar. 19 – The central bank of India cut its main interest rate by 25 basis points today after its mid-quarter policy review. This is the second rate reduction this year as India attempts to jumpstart its slowing economy. The Reserve Bank of India (RBI) also said that its benchmark repo rate, the rate used […]
Dividend Distribution Tax in India
By Himanshu Joshi, Accounts Associate, Dezan Shira & Associates Mar. 14 – The provisions of Dividend Distribution Tax (DDT) are contained in section 115-O of the Income Tax Act. A domestic company, in addition to the income tax payable on its total income, shall pay tax on income distributed, declared or paid to it by […]
Presumptive Basis of Taxation for Small Business in India
By Himanshu Joshi, Accounts Associate, Dezan Shira & Associates Mar. 6 – In order to provide small business owners relief from the tedious work of book keeping, auditing and compliance, sections 44AD and 44AE of the Income Tax Act 1961 allows an assessee to determine their income on a presumptive basis. This allows income to […]
Can India Tax Itself to Prosperity?
By Chandrahas Choudhury Mar. 5 – India’s central and state governments are edging closer to an agreement on a design and deadline for the Goods and Services Tax, a comprehensive value-added tax that will replace many smaller taxes and levies and will make India a unified market. The proposed tax reform has been described as […]
Introduction to the Service Tax Partial Reverse Charge Mechanism
By Himanshu Joshi Feb. 28 – A new taxation scheme for the services sector that came into effect on July 1, 2012, states that both the service provider and the recipient of the service must now pay the requisite service taxes. Prior to this, the liability to pay such services tax was only born by […]
