Hope this newsletter finds you in good health.
We are pleased to share with you a copy of our latest publication – GST Café, a briefing on the extension of the Foreign Trade Policy 2015-20 and incentives thereunder on account of the COVID-19 pandemic.
To read the GST Cafe, click at Download Newsletter.
We trust that you will find the same useful.
For any details and clarifications, please contact to:
Mr. Shammi Kapoor at [email protected]
We are pleased to share with you a copy of our latest publication – GST Café, a briefing on recent relief given by the Ministry of Finance under indirect tax laws in view of the pandemic COVID-19.
To read the GST Cafe, click at Download Newsletter.
We trust that you will find the same useful.
For any details and clarifications, please contact to:
Mr. Shammi Kapoor at [email protected]
The existing regime of taxation of dividend in India is provided in Section 115-O of the Indian Income Tax Act, 1961 (the Act), which is a special provision for the levy of additional income tax on such distributed profits, commonly referred to as dividend distribution tax (DDT), on the amount of dividends declared or distributed or paid by the Indian company. The dividend received is consequently treated as exempt in the hands of the recipient shareholder.
The existing regime of taxation of dividends has led to a debate as to whether the lower rate as provided in the Double Taxation Avoidance Agreement (the treaty) could be applied for taxation of dividends paid by an Indian company to nonresident shareholders.
The DDT, under the present law, has been treated by the Indian Revenue Service (IRS) as the tax imposed in the hands of the Indian company paying dividends and not a liability of the nonresident shareholder, and for that reason the benefit of tax treaty is denied by the tax authorities in India.
The existing regime of taxation of dividends is an obstruction for foreign investors, who in most countries are not able to claim credit for the tax paid on dividends in India.
To read the complete article, click at Download Newsletter.
Article by: Mr. Neeraj Jain and Ms. Shaily Gupta
The requirement to file a tax return in India is provided under Section 139(1) of the Indian Income-tax Act, 1961 (the Act), whereby all companies are required to furnish an income tax return irrespective whether the income earned by them (which has territorial nexus with India) is chargeable to tax in India or not (see Castlet on Investment Ltd and XYZ/ABC Equity Fund for such obligation on foreign companies).
Section 115A(5) of the Act provides relief to nonresident taxpayers who derive dividend and/or interest income from the requirement to furnish a tax return in India, subject to the condition that the tax has been with-held by the Indian payer in terms of the provisions of the Act.
At present, no such exemption is available to nonresidents deriving income by way of ‘‘royalty’’ or ‘‘fees for technical services’’ (FTS), subject to tax in India under clause (b) of sub-section (1) of Section 115A of the Act. In the Finance Bill, 2020, which was tabled in the Lower House of the Parliament on February 1, 2020, provisions of Section 115A of the Act are proposed to be amended to extend the exemption from the requirement to furnish tax returns in India to nonresidents deriving income by way of royalty or FTS, where tax has been withheld at source.
To read the article please click at the Download Newsletter.
The 39th GST Council Meeting was held on 14th March, 2020 at New Delhi. The GST Council has made various recommendations on procedure as well as law, including in respect of (i) Aadhaar authentication, (ii) entities undergoing corporate insolvency resolution, (iii) disbursal of refunds on account of zero-rated supplies, (iv) deferment of e-invoicing and QR code requirements, among others.
Pursuant to this, the Department has recently issued appropriate notifications and circulars. The relevant changes have been summarised in this Tax Alert.
To read more about the updates, please download the newsletter.
We are pleased to share with you the copy of our latest edition of “TaxBuzz…”, wherein we have analysed the recent ruling of the Bombay High Court (Goa Bench) in the case of Sesa Goa Ltd., wherein the Court has upheld the claim of the assessee regarding allowability of deduction under section 40(a)(ii) of the Income tax Act, 1961 on account of ‘education cess and secondary and higher education cess’ paid during the year while computing the income from ‘profits and gains from business or profession’.
The question of allowability of deduction on account of ‘education cess’ is currently one of the contentious issues under the Income Tax Law with rulings from the Tribunal and a few High Courts, in favour of both the assessee as well as the Revenue.
It is these varying dimensions and conflicting arguments which are sought to be analysed and laid out in this edition of “TaxBuzz…”.
To know more info, please download newsletter.
