Other Briefings
Special Economic Zone Incentives to Continue Until 2014
Aug. 30 – Special economic zone incentives will be exempted from the new direct tax code (DTC) until 2014 although there is a proposed 20 percent minimum alternative tax based on a version approved by the Cabinet last Thursday. Despite the assurance, investors are still nervous about the changes and developers are unsure whether zones […]
Approved Direct Tax Code Bill Cuts Rates
Aug. 27 – India’s Cabinet approved the Direct Taxes Code Bill yesterday, part of the government’s efforts to simplify procedures and cut taxes. The DTC bill proposes decreasing tax rates while also cutting down on tax exemptions. Personal income tax exemption limits will be raised for employees earning up to Rs. 200,000 from the previous […]
New Incentives Available for Outsourcing Companies in Rural Areas
Aug. 25 – A rural business process outsourcing (BPO) policy was announced last Wednesday by the Tamil Nadu government that would give economic incentives for BPOs opening in rural areas. “Tamil Nadu being a major Information and Communication Technology (ICT) Hub and with the ICT industry now expanding to Tier II, Tier III cities, and […]
New Regulations on Digital Signature Registration Released
Aug. 18 – India’s Income Tax Department has released new regulations on registering digital signatures for filing income tax returns effective beginning today. The department has made revisions on its Digital Signature Certificate (DSC) registration process. The authorized signatory for the DSC has the option to follow the existing procedure or the new procedure highlighted […]
India Considers Opening the Private Banking Sector
Aug. 12 – The Reserve Bank of India has released a discussion paper that talks about possibly opening the private banking sector to new players. “The RBI clearly expresses its intent to expand the banking reach in the country while focusing on maintaining financial stability,” said CII director-general Chandrajit Banerjee. This will make bank capital […]
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’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 […]
Income Tax Return Deadline Extended
Aug. 2 – India’s Central Board of Direct Taxes announced it would extend income tax return filing from July 31 to August 4. All returns, whether done electronically or not, as long as it is given on or before August 4 will be considered on time. The extension was announced after reports that the e-filing […]
