The present corporate tax rate in India and dividend distribution tax (DDT) together account for around 46%—50% of the effective tax rate for domestic companies. With the recent amendment to US tax laws, resulting in the reduction of corporate tax from 35% to 21%, India may be under greater pressure to reduce the tax burden … More Budget 2018: DDT – Will it be abolished?
Like every other year, there are a number of “asks” the country (both individuals and corporates) may have from the Finance Minister this Budget — reducing corporate tax rates, doing away with dividend distribution tax and increasing the tax exemption limit to name a few. And as budgets go, something or someone may have to … More Will the Government’s “digital” agenda fund the much-anticipated tax cuts in this Budget?
The Finance Minister is in an unenviable position of having to meet multiple expectations ranging from that of corporates or businesses seeking “relief” after GST implementation The country is abuzz with discussions around the upcoming National Budget to be presented by the finance minister (FM) on February 1, 2018. Since we Indians are an opinionated … More Expecting a populist Budget 2018? FM’s hands could be tied by fiscal constraints
Till a few years ago, the Union Finance Budget used to be the country’s signature tax event of the year. However, the recent past has seen tax-related changes roll in through the year, so much so that every month has taxpayers understanding and debating new developments, thereby consigning the Budget to a lower pedestal. The … More Transfer pricing in 2017 and what it means for the future
The latest National Income estimates from the CSO released on 5 January 2018 indicate a recovery in economic growth beginning 2QFY18 after a fall in the growth rate for five consecutive quarters. This recovery augers well for the fiscal prospects for the latter half of FY18 and for FY19. The World Bank has also estimated … More Budget FY19: A macro-fiscal perspective
Determination of tax residence based on the Place of Effective Management (PoEM) has been in force in India since April 2016, with guidance and clarification from tax authorities issued in January 2017. The guidance has shed more light on cases that the Government intends to cover within the ambit of the PoEM regulations. However, as … More Place of Effective Management – Decoding UK’s Development Securities decision in the Indian context
Recently, OECD released an update to the OECD model convention and commentary (“2017 update”). The 2017 update largely consists of amendments agreed upon as part of the BEPS project and follow up work thereon. In addition, it incorporates certain other changes that were released for public comments previously and finalized now. It also contains the … More India’s position on the “2017 OECD update”: Deviating from an international consensus?