Exports from SEZs down 1.89% in Apr-Dec 2015
The Dollar Business Bureau India’s total exports originated from special economic zones (SEZs) fell by 1.89% to Rs.3.41 lakh crore during April-December 2015, Commerce Minister Nirmala Sitharaman said in a written reply to the Parliament on Monday. In the financial year 2014-15, exports from SEZ’s had fallen by 6.13% to Rs.4.63 lakh crore. “In order to boost exports from SEZs, the government periodically reviews the policy and operational framework of these zones and takes necessary steps to facilitate speedy and effective implementation of SEZs,” Sitharaman said on Monday. The commerce minister stressed that the Prime Minister Narendra Modi-led government has put a particular emphasis on developing India’s SEZs, as these economic zones hold immense potential to boost the country’s export segment. ...
Govt to amend law to exempt foreign firms from MAT
Source: PIB, Government of India After due consideration of the various aspects of the matter, the government of India has decided that with effect from 01.04.2001, the provisions of Section 115JB shall not be applicable to a foreign company if — The foreign company is a resident of a country having DTAA (Double Taxation Avoidance Agreement) with India and such foreign company does not have a permanent establishment within the definition of the term in the relevant DTAA, or The foreign company is a resident of a country which does not have a DTAA with India and such foreign company is not required to seek registration under Section 592 of the Companies Act 1956 or Section 380 of the Companies Act 2013. An appropriate amendment ...
Government mulls providing MAT relief to FIIs
Source: PTI In a big relief to foreign institutional investors (FIIs), a government-appointed committee has recommended that there was no case for imposing the controversial minimum alternate tax (MAT) on FIIs retrospectively, a suggestion that the government is said to be "favourably" considering. The A P Shah Committee, which was appointed by the government to go into question of levy of MAT on capital gains made by FIIs, submitted its report to the Finance Minister Arun Jaitley on July 24. The panel, a top source said, has recommended that there was no basis for levy of MAT on FIIs for period prior to April 1, 2015. The Committee saw no legal basis for levy of 20% MAT on past capital gains, ...
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 ...
I-T sleuths told to go easy on tax dues against foreign portfolio investors
The Dollar Business Bureau The Chairperson of CBDT, Anita Kapur (first on the right side) briefing the media, in New Delhi on June 16, 2015. Source: PIB, Government of India Amid concerns over outward movement of overseas funds from the Indian stock market after tax notices slapped on foreign portfolio investors (FPIs), the Income Tax department has said that it will not take coercive measures to recover tax dues from FPIs. A number of Foreign Portfolio Investors (FPIs) have challenged the tax recovery notices sent to them before April 2015. In the annual budget for the current financial year, the government has exempted FPIs from paying Minimum Alternate Tax (MAT) on their income occurred from trading in securities and stocks. According ...
Centre prepares draft to include range concept in transfer pricing
The Dollar Business Bureau In an effort to make international transactions more convenient, the finance ministry has proposed a new rule for determination of arm’s length prices of any goods or services exchanged between multi-national companies in India and their units abroad. The Income Tax department has already prepared a draft of the proposed rule which seeks to change the method used to calculate taxes on such transactions. The move came in the wake of a number of incidents of tax avoidance through manipulation of transfer pricing regime by companies having business in India and other countries. The Finance Ministry has sought comments and suggestions on the draft scheme of the proposed rules for computation of arm length price (ALP) ...
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 ...
High-level committee to deal with tax issues
The Dollar Business Bureau The Union Finance Minister, Arun Jaitley, on Monday, stressed on need for a non-adversarial taxation policy, as he made clear that the Government of India will not impose ‘retrospective’ taxes. “Our taxation process has to be simpler to increase tax buoyancy and the taxation policy has to be non-adversarial. The government does not intend to tax people retrospectively,” said Jaitley, addressing the D P Kohli Memorial Lecture in New Delhi. Further promising a business-friendly environment for the global investors, the Union Finance Minister called for a globally competitive corporate tax structure. He stated this in reference to the Union Budget 2015, where the government has proposed to reduce the corporate tax from 30 % to ...
