Other Briefings
Foreign Companies Now Allowed to Appeal Transfer Pricing Taxes
Feb. 1 – Multinational companies asked to pay additional transfer pricing taxes for overseas transactions will be given the choice to appeal their case to the conventional forum of Commissioner or the Dispute Resolution Panel (DRP). Previously, a tax order coming from of a transfer pricing officer (TPO) was considered the final decision but now […]
Income Tax Verification Form Filing Extended to End of March
Jan. 28 – India’s Central Board of Direct Taxes has announced the extension income tax return verification form (ITR-V) forms filed electronically on or after April 1, 2009 to March 31, 2010 or within a period of 120 days from the date of uploading of the electronic return data, whichever is later. This announcement is […]
New Hotels to be Given 5 Year Tax Holiday
Jan. 27 – To encourage more hotels to open prior to the Commonwealth Games, India is giving a five-year tax holiday for new hotels completed in the national capital region before March 31. The rule will apply to 2, 3 and 4 star hotels and exclude 5 star hotels. An estimated 100,000 tourists are expected […]
New Remittance Rule for Foreign Companies Introduced
Jan. 26 – Indian tax authorities have introduced new rules that require foreign remittances to be reported before payment. Every recipient of income is now required to provide a Permanent Account Number (PAN) or tax registration number to the payer beginning April 1, 2010. Should the recipient fail to provide a PAN, the withholding tax […]
India Signs Revised Double Taxation Treaty with Finland
Jan. 25 – India and Finland have signed a revised version of the Double Taxation Avoidance Agreement (DTAA). The new agreement will cut withholding tax rates on dividends to 10 percent from 15 percent in addition to setting a 10 percent rate for royalties and fees for technical services. It will expand the scope of […]
India Releases Income Tax Deduction Rates for 2009-2010
Jan. 21 – India’s Income Tax Department recently released a circular detailing the tax deduction rates on salaries for the financial year 2009-2010. As per the Finance Act, 2009, income tax is required to be deducted under Section 192 of the Income Tax Act of 1961 from income chargeable for the financial year 2009-2010 (i.e. […]
Maharashtra to Charge Entertainment Tax for IPL Matches
Jan. 21 – The Maharashtra government will begin charging an entertainment tax worth up to 25 percent of all ticket sales for T20 matches organized by the Indian Premier League (IPL). IPL matches played within municipal limits will be charged a 25 percent tax and matches held outside municipal limits will be levied a 20 […]
Transfer Pricing Issues in India
Jan. 20 – Transfer pricing in India was first implemented beginning 2001 and since then the regulation has served well to lift the quality of audits in the country and become a source of additional revenue for the government. The following emerged as common adjustment issues for companies undergoing transfer pricing audits: – tax authorities […]
