Apr. 24 – The professional services firm Dezan Shira & Associates, taking advantage of recent regulatory changes, have registered an LLP in Mumbai, increased staff, and confirmed that the founder of the practice, Chris Devonshire-Ellis, will become the firm’s managing partner in India. Devonshire-Ellis, who resigned from the firm’s China practice in February, will formally[…..]
Apr. 22 – The Reserve Bank of India (RBI) cut basis points on interest rates by 25 basis points yesterday, with interest loans for homes, cars and consumer goods set to drop further. Other banks are expected to follow. The RBI also cut it’s repo rate or the rate at which it lends to other[…..]
Commentary: Chris Devonshire-Ellis Apr. 14 – The ability for Indian chartered accountants, cost accountants and company secretarial practices to obtain limited liability partnership status will take some time, even though the government has initiated the process. Despite the government approval, the three regulators concerned, the Chartered Accountants of India (ICAI), the Institute of Cost and[…..]
Apr. 7 – Foreign companies and non-resident individuals that need to send funds to foreign countries will need to notify the Income Tax authorities according to a new regulation by the Central Board of Direct Taxes. According to the new regulation 37BB, the company or individual that sends the money abroad will have to notify the income tax authorities before remitting money outside India so that the Indian tax authorities can keep a tab on the taxes paid on the remittances.
Apr. 3 – The Indian government is working towards making service tax payments within Special Economic Zones simpler and less bureaucratic. The Finance Ministry has written to the Election Commission seeking approval to eliminate the lengthy procedure which involves companies within SEZ’s paying service tax and then claiming refunds. Nonetheless, taxes will have to be paid for services rendered outside SEZ’s.
Mar. 31 – Indian financial policymakers have decided to adopt a reciprocity model for allowing foreign banks to set up branches or subsidiaries in India. They will also want foreign banks to list on the Indian bourses in order to have a presence in the Indian market.
Mar. 26 – The Supreme Court of India has ruled that a foreign company registered and situated abroad is liable to deduct tax on salary paid in the home country to their employees working in India, the Economic Times reported. Until now, the ruling held that TDS provisions could not extend beyond borders.
Mar. 9 – The Delhi bench of the Income Tax Appellate Tribunal (ITAT) ruled on Monday that an expatriate responsible for operations of a company in India as well as other countries in the region need not pay taxes on his salary earned outside India if he can prove the work conducted out of India had nothing to do with his Indian operations. According to the ITAT ruling, if the expatriate fulfils the requirements, he will not be taxed on his salary for the days that he hasn’t been in India.
Tax liability in India is governed by the residential status of the individual during that tax year. Individuals are considered residents if they are in India for more than 182 days or more during the fiscal year or if they are in India for 60 days or more in a year provided that they have also been in India for an aggregate of 365 days or more in the preceding four tax years.