Other Briefings
India Cuts Tax Relief on Commercial Rentals
Apr. 24 – The Delhi High Court has announced that it would abolish service tax on commercial rentals, cutting central government earnings by Rs 8,000 crore annually. The regulation will help realtors, specially companies like retailers and call centers. Ernst & Young associate director Bipin Sapra told The Economic Times: “The high court order is […]
Dezan Shira & Associates Reorganizes Mumbai Office
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 […]
Reserve Bank of India Cuts Rates By 25 Points
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 […]
Indian LLP Status for Accountancy Practices Being Implemented
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 […]
Tax Authorities to Scrutinize Foreign Remittances
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.
Service Tax Within SEZ’s to be Exempt
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.
Foreign Banks Face Tough Entry / Expansion Route
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.
Foreign Cos Can Deduct Tax on Salaries Paid in India
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.
