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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 ...

The Dollar Business Bureau The Union Cabinet has also approved the signing and ratification of an agreement with Maldives for the exchange of tax related information between the two countries  Union Cabinet on Wednesday approved signing of a protocol with Slovenia seeking amendments in the double taxation avoidance treaty (DTAT) between India and the European Union country. The move comes as part of the government’s efforts to prevent tax evasion and tax disputes related to multinational companies. “The amendment in the protocol will broaden the scope of the existing framework of exchange of tax related information which will help curb tax evasion and tax avoidance between the two countries and will also enable mutual assistance in collection of taxes,” Finance ...

The Dollar Business Bureau Fair trade regulator Competition Commission of India (CCI) will soon come out with changes in its rules to ease the process of mergers and acquisitions (M&As) and reduce the time for clearing such deals to 30 days. Experts are already working on a fresh set of regulations which is expected to be put in place by the end of December. “We are actively and quickly reviewing regulations, we have called for comments from some of the law firms which have been filing with us and I think before this year ends, which is in the next few days and 2016 starts, we will make further changes on things which have been bothering companies in terms of authorised ...

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 ...