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The Dollar Business Bureau India’s economy is likely to grow at 7.2% in the current financial year, showing signs of revival from an expected slowdown to 6.8% in the last fiscal, said World Bank in a report on Monday. “The revision of forecast reflects a combination of the impact of demonetisation and an investment recovery that has proven more protracted than expected,” it said in its May 2017 India Development Update report. The multilateral investment agency estimated India’s gross domestic product (GDP) growth at 7.7% in 2019-20 and 7.5% during 2018-19. “Growth is likely to slowdown in the financial year 2016-17 as the momentum of October-December quarter shifts to the last quarter of January-March,” the report said. The World Bank report comes prior to the release ...

The Dollar Business Bureau  Finance Minister Arun Jaitley will be travelling to Paris to sign the multilateral convention of Organisation for Economic Cooperation and Development (OECD), next week. The convention is aimed at checking cross-border evasion of taxes by multinational companies (MNCs).  During the 3-day visit beginning June 7, the Finance Minister will also join the Ministerial Council Meeting, which will be attended by ministers from OECD countries and other partner countries to deliberate upon issues of global importance.  Earlier this month, the Union Cabinet had given the approval for signing the OECD’s multilateral convention.  The convention is a result of the base erosion and profit shifting (BEPS) project between OECD and G-20, to tackle what is used by MNCs via tax planning strategies by abusing ...

By Stella Joseph and Ranjeet Mahtani By the proposals in the Union Budget of 2017, India has sought to adopt and introduce in its Income tax law provisions, what is popularly known as the Thin Capitalization Rule. The proposal is aligned to the Action Plan 4 of the Base Erosion of Profit Share (BEPS) project of the Organisation for Economic Co-operation and Development (“OECD”), under the initiative of G-20 countries (which includes India). The Final Report on Action Plan 4 was released in October 2015 and additional guidelines thereto have been released in December 2016. The Thin Capitalization Rule has been explicitly adopted by a number of economies including the United States, Russia, Indonesia, Canada, Australia and various European nations. The form which ...

 Source: PTI With India and other countries stepping up vigil against tax evasion, Paris-based OECD has prepared a standardised electronic format for information exchange to help tax authorities have a better understanding about the way multinational firms structure their operations. The move is part of larger efforts, agreed upon by G-20 countries, including India, to clamp down on activities that lead to Base Erosion and Profit Shifting (BEPS). The Organisation for Economic Cooperation and Development (OECD) on Tuesday released its standardised electronic format for the exchange of Country-by-Country (CbC) reports between jurisdictions -- CbC XML Schema along with the related user guide. "CbC reports, to be electronically transmitted between competent authorities in accordance with the CbC XML Schema, will assist ...

The Dollar Business Bureau A government appointed committee proposed an Equalization Levy of 6% - 8% on e-commerce transactions that cross Rs.1 lakh. This move is to bring the burgeoning e-commerce sector under the tax net. In its report to the Finance Ministry, the committee stressed, “that only payment exceeding Rs.1 lakh made by a resident Indian or a permanent establishment of a non-resident person to a non-resident enterprise be covered under this levy, which may be charged at a rate between 6% - 8% of the gross payment made for specified services.” This equalization levy could be imposed on a wide spectrum of digital services and facilities that included – cloud computing, website designing hosting and maintenance, online marketing and ...

Sai Nikesh | The Dollar Business BEPS project implementation would lead to higher tax payment in source countries like India, and multinationals will need to accept this reality , says Nilesh Kapadia, Chartered Accountant and partner at N M K & Co   The Finance Ministry is prioritising implementation of measures like Base Erosion and Profit Shifting (BEPS) mechanism in order to ease taxation norms for multinational companies. “Industry should start working towards BEPS readily, in order to keep up with the upcoming changes. The objective of the BEPS project is to prevent strategies to shift profits and review the whole system of international taxation. It is aimed at domestic resource mobilisation,” said Akhilesh Ranjan, Joint Secretary at the Central Board ...

Source: PIB, Government of India   Finance Minister Arun Jaitley has emphasized the need for common reporting standards on automatic exchange of information to be implemented globally to prevent international tax evasion and avoidance. Intervening in the 49th Annual Commonwealth Finance Ministers Meeting in Lima, Peru on Wednesday he welcomed the efforts of OECD in the Action Plan on Base Erosion and Profit Shifting (BEPS) Project and Automatic Exchange of Information which have important implications for commonwealth countries. He emphasized the need to ensure that the common reporting standards on automatic exchange of information are implemented globally on a fully reciprocal basis as this would be a key to prevent international tax evasion and avoidance. He noted that India has been ...

 The Dollar Business Bureau Stressing on the need to keep a check on tax evasion by multi-national companies (MNCs), India has asked the G20 members to expedite the implementation of a common reporting standard to ensure automatic exchange of information among countries. “There is a need to ensure that the common reporting standards on automatic exchange of information should be implemented on a fully reciprocal global basis and those countries which have not yet committed to the timeline of 2017 or 2018 should do it without any further delay. The problem of black money and illicit flow to offshore jurisdictions and tax havens can be addressed only if this is implemented at a global level,” Union Finance Minister Arun Jaitley ...