Web Analytics
English
Home Search

Search results: CBDT

tax

Take the chains off business

Recent moves to decriminalize violations of corporate and tax law are welcome, writes Nitin Mittal With the Central Board of Direct Taxes (CBDT’s) recently introduced circular, on 9 September, which eases norms for initiating prosecution...
angel tax

Who is exempt from the angel tax?

Section 56 of the Income Tax Act, 1961 (ITA) seeks to tax “income from other sources” of a taxpayer. Section 56(2)(viib) levies tax on a private company on issuance of shares, if such shares...
profit

Tax body proposes new rules on profit attribution

The Central Board of Direct Taxes (CBDT) recommended significant amendments to the current rules on attribution of profits to permanent establishments (PEs) in a report issued on 18 April 2019. The report is based primarily...

CBDT issues final notification on securities tax exemption

The Finance Act, 2018, withdrew an exemption under section 10(38) of the Income Tax Act, 1961 (ITA), on long-term capital gains (LTCG) arising from the transfer of listed equity shares or units of an...
CBDT-amends-tax-audit-report-format

CBDT amends tax audit report format

The Central Board of Direct Taxes (CBDT) recently amended the format of the tax audit report that all auditable companies and professionals whose turnover exceeds the prescribed thresholds under section 44AB of the Income...

CBDT seeks input on secondary adjustments

The Central Board of Direct Taxes (CBDT) released a draft notification on 19 June for comments and suggestions in relation to amending rule 10CB, which prescribes the timelines for secondary adjustments. In order to...

CBDT amends income tax rules

The Central Board of Direct Taxes (CBDT) has amended the Income Tax Rules, 1962, by omitting the words “or an accountant” from rule 11UA(2)(b). Section 56(2)(viib) of the Income Tax Act, 1961 (ITA), provides...
CBDT-issues-draft-for-securities-tax-exemption

CBDT issues draft for securities tax exemption

The Central Board of Direct Taxes (CBDT) issued a draft notification specifying transactions that would not be subject to a securities transaction tax (STT) during acquisition to obtain a beneficial tax rate. The Finance Act,...
India-advance-pricing-agreements

CBDT enters into advance pricing agreements

Anotification from the Central Board of Direct Taxes (CBDT) on 3 April said it had entered into 14 unilateral advance pricing agreements (UAPAs) and two bilateral advance pricing agreements (BAPAs) in March. As per section...
taxation-due-date-india

Direct tax body clarifies due date

The Central Board of Direct Taxes (CBDT) on 23 March clarified the applicability of the “due date” for country-by-country reporting (CbCR) under section 286(4) of the Income Tax Act, 1961 (ITA). Section 286(2) of the...

Direct tax body clarifies indirect transfer provisions

The Central Board of Direct Taxes (CBDT) released a clarification via a circular on 7 November on the applicability of indirect transfer provisions (ITP) on non-resident investors on account of redemption/buyback of shares/interest held...

CBDT clarifies place of effective management guidelines

The Central Board of Direct Taxes (CBDT) issued a notification on 23 October to clarify the recent place of effective management (POEM) guidelines. The Finance Act, 2015, had amended section 6(3) of the Income...

Direct tax body issues draft notification

The Central Board of Direct Taxes (CBDT) issued a draft notification dated 6 October setting out the rules and guidelines for country by country reporting (CbCR) and maintaining/furnishing the master file (MF) inviting stakeholder...
Business Law Journal, letter to the editor

Virtual currencies – A regulatory conundrum

Dear Editor, I would like to highlight that the legal status of cryptocurrencies or virtual currencies (VCs) such as bitcoins continues to be debated as it remains unrecognized in India. Unlike the traditional form of...

Authority clarifies MAT calculations

The Central Board of Direct Taxes (CBDT) on 25 July released clarifications on computation of book profit for the purposes of levy of minimum alternate tax (MAT) for companies that comply with Indian Accounting...
Extent of amendment's application clarified

Extent of amendment’s application clarified

A notification from the Central Board of Direct Taxes (CBDT) on 5 June said that barring a few exceptions transactions of acquisition of listed equity shares on or after October 2004 which are not...
April deadline for FATCA compliance

April deadline for FATCA compliance

The Central Board of Direct Taxes (CBDT) has set 30 April 2017 as the deadline for account holders to provide self-certifications to financial institutions with respect to rule 114H(8) relating to the US Foreign...
Patent box regime modified

Patent box regime modified

Through a notification on 31 March, the Central Board of Direct Taxes (CBDT) introduced changes to the patent box regime. The CBDT notified rule 5G of the Income Tax Rules, 1962, and form 3CFA...
Applicability of general anti-avoidance rules clarified

Applicability of general anti-avoidance rules clarified

The Central Board of Direct Taxes (CBDT) recently released a circular providing clarifications in response to queries raised by stakeholders on the implementation of general anti-avoidance rules (GAAR). The GAAR provisions, which were introduced in the...
AIFs not subject to capital gains exception

AIFs not subject to capital gains exception

On 2 May 2016, the Central Board of Direct Taxes issued an instruction clarifying that income from the transfer of unlisted shares shall be considered under “capital gains”, irrespective of the period of holding...

Authorities to reconsider indirect transfer provision

On 21 December 2016, the Central Board of Direct Taxes (CBDT) released a circular containing responses to questions raised by foreign portfolio investors (FPIs), private equity and venture capital investors and other stakeholders on...
bld4tax

CBDT issues draft rules for buyback tax

Under section 115-Q of the Income Tax Act, 1961, a buyback tax at the rate of 20% is levied on distributed income arising out of a buyback of unlisted shares of a company. The...

Valuing indirect transfers: New rules introduced

By Ranjeet Mahtani and Hardik Choksi, Economic Laws Practice
A US$11 billion deal between Vodafone and Hutchison Group brought the taxability of indirect transfers of Indian assets into the limelight. The Supreme Court of India in 2012 held that Hutchinson’s sale of shares...
employment

Working group to examine India-Mauritius tax issues

The CBDT has constituted a working group to examine issues arising out of the amendment to the India-Mauritius double taxation avoidance agreement. The working group consists of government officials, industry representatives and stakeholders. The...

Rules for tax on indirect transfers notified

The Central Board of Direct Taxes (CBDT) recently notified rules to determine whether a share or interest in a foreign company or entity derives its value substantially from assets located in India. Under section 9...

TARC leads the way on taxation reform

By Karthik Sundaram and Karthik Nair, Economic Laws Practice
In an attempt to radically reform the tax administration in India, the central government appointed the Tax Administration Reform Commission (TARC), with Dr Parthasarathi Shome at its helm. Since its inception in August 2013,...
Studying_business_provisions,_document

CBDT notifies safe harbour rules for fund managers

On 15 March, the Central Board of Direct Taxes (CBDT) notified the Income Tax (5th Amendment) Rules, 2016. Under the rules, where investment in a fund has been made directly by an institutional entity,...

Special Valuation Branch: The new road ahead

By Karthik Sundaram and Rajat Chhabra, Economic Laws Practice
Under customs laws, the Special Valuation Branch (SVB) specializes in investigation and assessment of transactions involving special relationships between buyer and seller and certain special features surrounding the sale of imported goods having influence...

The need of the hour

India must overhaul its machinery for resolving tax disputes, writes Aseem Chawla at MPC Legal The efficiency of a tax administration system depends to a great extent upon the credibility of its dispute resolution mechanism,...
India's annual budget and goods and services tax

India’s annual budget and goods and services tax

India’s annual budget included a mixed bag of tax measures, but not the hoped-for repeal of retrospective tax amendments Rohan Shah and Anay Banhatti report The finance minister’s presentation of India’s annual budget generally draws an...

Cyprus notified as non-cooperative jurisdiction

On 1 November 2013, the Central Board of Direct Taxes (CBDT) issued a press release notifying Cyprus as a non-cooperative jurisdiction for failure to provide information that was requested under the exchange of information...
Soap_manufacture,_research_and_development

Central Board of Direct Taxes issues circulars on R&D 

The Central Board of Direct Taxes (CBDT) recently issued two circulars: Circular 2/2013, on the application of the profit split method (PSM); and Circular 3/2013, on conditions relevant to identify development centres engaged in...

Tax residency certificate: Is the devil in the details?

By Pranay Bhatia and Janhavi Sharma, Economic Laws Practice
Atax residency certificate (TRC) is important for claiming tax treaty benefits. Some source countries are cautious about providing tax benefits to non-residents, especially to corporations from low tax jurisdictions which have a favourable tax...

Expenses for prohibited gifts cannot be deducted

Ruling in Confederation of Indian Pharmaceutical Industry v Central Board of Direct Taxes & Ors, a two-judge bench of Himachal Pradesh High Court held that a Central Board of Direct Taxes (CBDT) circular denying...

Board clarifies tax obligations under QFI regime

The Central Board of Direct Taxes (CBDT) has issued clarifications on tax-related issues that have been plaguing qualified foreign investors (QFIs), in particular on their withholding obligations and their ability to use tax treaty...
Ajit Tolani and Ashish Bhatnagar, Economic Laws Practice

Advance pricing agreements: the Indian situation outlined

By Ajit Tolani and Ashish Bhatnagar, Economic Laws Practice
The introduction of advance pricing agreements (APAs) in the Union Budget 2012-13, which is now part of the Finance Act, 2012, was a significant development in the Indian transfer pricing (TP) administration. An APA...
Pranay Bhatia,Vidushi Maheshwari,Economic Laws Practice

Direct Tax Code and impact on non-residents

By Pranay Bhatia and Vidushi Maheshwari, Economic Laws Practice
The draft Direct Tax Code (DTC) released by the Finance Ministry in August 2009 posed certain challenges for taxation of non-residents. In order to clarify the concerns and issues raised by taxpayers, the Central...

Happy end to the E*Trade Mauritius saga

In a happy ending to the latest twist in the case of E*Trade Mauritius (ETM), the Authority for Advance Rulings (AAR) has ruled that the company is entitled to the beneficial capital gains tax...
Pranay Bhatia,Balaji Balasubramanian,Economic Laws Practice

Tax withholding judgment poses dilemma for businesses

By Pranay Bhatia and Balaji Balasubramanian, Economic Laws Practice
Withholding tax on payments to non-residents has been a bone of contention between the taxpayer community and the tax department. Until recently, the controversy related to whether income in the hands of a non-resident...

New valuation rules for taxation of perquisites

On 18 December 2009 the Central Board of Direct Taxes (CBDT) issued its long-awaited rules for the valuation of perquisites, which will take effect on 1 April 2010. In accordance with the amendment made...

Tax rules for non- resident business income withdrawn

Increasing the uncertainty within India’s tax environment, the Indian Central Board of Direct Taxes (CBDT) recently withdrew Circular 23 of 1969, which laid out limitations on the taxability of non-resident business income in India....

Payments for offshore contracts not taxable

In the case of Hyosung Corporation (the applicant), which involved off-shore and on-shore contracts among three entities, the Authority for Advance Ruling (AAR) held that amounts paid to non-residents for off-shore contracts taking place...
Central board clarifies tax credit rules

Central board clarifies tax credit rules

The Central Board of Direct Taxes (CBDT) has recently clarified who will be able to benefit from tax deducted at source (TDS) in cases where income is assessable in the hands of an individual...