India and Cyprus complete negotiations on DTAA
The Dollar Business Bureau India and Cyprus had signed a DTAA (double taxation avoidance agreements) in 1994. Since then the little island nation has become one of India's seventh largest source of FDI into the country accounting for Rs 42,680.76 crore between 2000 and 2016. During fiscal 2015-16, FDI inflows from Cyprus aggregated around Rs 3,317 crore making Cyprus the 8th largest FDI contributing-country to India. However in November 2013, a fallout between the two countries regarding non-disclosure of tax-related information led India to place Cyprus under the 'Notified Jurisdictional Area' simply put ,blacklisting it This meant a higher withholding of tax in India for Cypriot resident investors of atleast 30% against the more beneficial rates of 10% as prescribed in the India-Cyprus tax ...
ASSOCHAM suggests changes to CBDT in FTC rules
The Dollar Business Bureau As the government is in the process of fine-tuning the tax regime with the nations which already have double taxation avoidance agreement (DTAA) with India, the industry body ASSOCHAM has suggested Central Board of Direct Taxes (CBDT) to make some changes in the planned Foreign Tax Credit rules to ascertain the Indian tax payers are subjected to double taxation incidence on income. ASSOCHAM said in a statement “Difference in accounting practices followed by different countries would lead to a double taxation on the income of an Indian taxpayer.” Recently, ASSOCHAM had invited Rani Singh Nair, a member of the CBDT, and held a detailed discussion on the matter. CBDT has formed a committee to suggest the procedure for grant of Foreign ...
CBDT to expeditiously process MAT exemption claims of FIIs
Source: PTI Government on Friday said the tax department will expeditiously process the cases where FIIs have claimed exemption from minimum alternate tax (MAT) as a benefit under the bilateral tax treaties. "The CBDT (Central Board of Direct Taxes) has directed its officers to expeditiously process the cases where the Foreign Institutional Investors (FIIs) have claimed treaty benefits under the Double taxation Avoidance Agreements (DTAA)," Minister of State for Finance Jayant Sinha said. The Income Tax Department has sent notices in 68 cases to FIIs for payment of dues totalling Rs 602.83 crore towards MAT. In a written reply to a question in the Lok Sabha, Sinha said the CBDT has directed that issuance of fresh notices for reopening of cases ...
Tax authorities advised to go slow on FIIs over MAT
The Dollar Business Bureau As foreign investors eagerly wait for the contents of the ‘Committee’ headed by Justice A. P. Shah that is looking into the issue of mimimum alternate tax (MAT) on foreign institutional investors (FIIs), officers of the Central Board of Direct Taxes (CBDT) dealing with international taxes have been advised not to take any co-ercive action against FIIs for recovery of demand already raised by invoking provisions of MAT. Issue of fresh notices for reopening of cases as also completion of assessment should also be put on hold unless the case is getting barred by limitation, said the government, reported a PIB release. Recently, CBDT has issued a notification saying “It has come to the notice ...
Foreign investors under tax treaty benefits to be exempted from MAT
Sai Nikesh | The Dollar Business In a move to address concerns of Foreign Institutional Investors (FIIs), the government, on Friday, assured that FIIs will be able to avail tax benefits wherever possible in accordance to the Minimum Alternate Tax (MAT) cases. The Central Board of Direct Taxes (CBDT) has released a notification to this effect and asked tax officials to resolve issues pertaining to tax claims involving FIIs. The CBDT has asked tax officers to expedite ruling on whether an investor can qualify for the tax treaty benefit and hence will be exempted from MAT. Welcoming the move, Adish C Aggarwala, Chairman, All India Bar Association, told The Dollar Business, “Exempting FIIs, belonging to the countries having tax ...
