In Budget 2017, the finance minister has proposed a new provision to enable a ‘secondary’ transfer-pricing adjustment to be made to a taxpayers income under the Income Tax Act, 1961 (Act).
Window dressing by holding back refunds, appeal effects, etc, in the last quarter of the fiscal to achieve budgeted figures and postponing them to the first quarter of next fiscal are symptoms of the malady of unrealistic tax collection targets
The present regime is competitive and levels the playing field
Govt is duty-bound to discourage political parties from accessing and spending unaccounted income
Relevant laws should have been changed to tax anonymous donations to political parties as well
The income tax legislation has a separate chapter outlining the method and timelines for taxpayers to obtain an advance ruling regarding their tax liability arising from a transaction proposed to be undertaken by or with a non-resident.
It is important for ease of doing business that the tax year and accounting year for businesses remain totally aligned
The Indian tax administration has been proactive in the past few years in its attempts at reducing tax litigation.
Starting from 1951, governments announced at least one income tax voluntary disclosure or bond scheme each decade till the 1990s—the last one being the Voluntary Disclosure of Income Scheme (VDIS), in 1997. Compulsions like low tax collections or low foreign exchange reserves made these schemes essentially ones which were driven by government revenue needs. It […]
A practical implication of the levy could be higher taxation of Indian entities rather than of the non-resident service provider
A comprehensive discussion paper backed by statistical data is needed to revisit the EPF issue
When the Indian arm reimburses its foreign parent for the salary paid by the parent, Indian Revenue charges this payment to tax on the ground that the parent is rendering technical services to the Indian arm. Is this correct?
Similar aggregated income-range-wise data for individuals and for other entities is not available in the Revenue Forgone Statement
This must not be left to long-drawn litigation on the scope and interpretation of the I-T Act provisions
We can think of Controlled Foreign Company rules, which more effectively balance tax administration and taxpayer concerns.