Skip to main content

FinMin to issue rules fo rnorms under BEPS

By
The finance ministry will issue rules and guidance to address some concerns and ambiguity over mandatory reporting norms with respect to transfer pricing formultinational companies whose consolidated annual revenue is over Rs.5,000crore.
The government is also steppingup administrative systems to plug possible data leakage,said a senior tax office rata conference on Friday.
These rules and guidance will aimat clarity on the extensive data reporting and document ation required under the Base Erosion and Profit Shifting (BEPS)measures unveiled by the Paris-based OECD grouping in October last year,to address tax avoidance by MNCs.OECD is Organization for Economic Cooperation and Development.
The concerns are on confidentiality of the data shared by companies with the tax author ities of various jurisdictions, beside the difference in accounting years and rules in differentcountries.The matter was discussed at the conference on Friday.
Akhilesh Ranjan,a senior income tax officer,said:"The concerns on accounting years, joint ventures and permanent establishment are genuine and a guidance note is under preparation.That and the rules will be issued in a couple of months." He was responding to Mohd Haroon Qureshi,head of tax, Asia-Pacific,atGenpact,who raised a slew of concerns.
"There are concerns that are yet to be addressed.There will be so much data.There is going to beamis match of countries with respect to their accounting rules, currencies and the accounting years be ingused," said Qureshi.
He noted that tax officers may even ask for reconciliation documents,though BEPS does not ask for it.Called the new world order in taxation, BEPS will require Indian companies with foreign presence and consolidated annual revenue of overRs.5,000 crore in the previous year to furnish country-by-country reports (CBCR) to the Indian tax department,a master file and local file directly to the tax authorities of each country of operation.
Business Standard New Delhi,15th October 2016

Comments

Post a Comment

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

By
  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6
Post a Comment
Read more

Jaitley plans to cut MSME tax rate to 25%

By
Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem
1 comment
Read more

Don't forget to verify your income tax return in August: Here's the process

By
  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s
Post a Comment
Read more