Other Briefings
India to Revise Law on Global Audit Firm Accountability
Sept. 29 – The government is considering amending the laws to hold multinational audit firms accountable for negligence done by their affiliates in the country. “You (the global network) can’t say that you are not responsible,” said Corporate Affairs Minister Salman Khurshid. “If an associate firm does something wrong… will the liability rest with the […]
Income Returns Deadline Extended to October 15
Sept. 28 – India’s Central Board of Direct Taxes has extended the deadline for filing of income returns for assessment year 2010-11 to October 15 from September 30. The extension was made on account of “reports of disturbance of general life caused due to floods and heavy rains.” No mention has been made about extending […]
DIPP: Allow JVs with Small Foreign Stakes to Enter Restricted Sectors
Sept. 23 – The Department of Industrial Policy and Promotion is voicing its opposition to a new proposal that would forbid companies with small levels of foreign funding to be allowed to enter restricted sectors. The agency is urging the finance ministry to reconsider the proposed policy that would keep out companies with even the […]
Central Sales Tax to Remain Under New Tax Regime
Sept. 22 – Central government authorities have given their partial approval to the local government proposal that they be allowed to continue to charge Central Sales Tax (CST) on goods even under the new Goods and Services Tax (GST). If implemented, states will be able to levy and keep CST on goods outside the GST […]
New SEZ Applications to Begin Oct. 21
Sept. 21 – Authorities will be accepting new special economic zone applications beginning October 21. This month, Commerce Secretary Rahul Khullar went through the approval of 11 new SEZs. India’s SEZs have been instrumental in enticing investments and providing jobs although there are fears that this may change as the SEZ Act that allows generous […]
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 […]
