Certain provisions of the code would delay the negotiation process, increase the tax liabilities and introduce uncertainties due to the General Anti-Avoidance rules.
The government on Tuesday said it planned to introduce safeguards in the proposed General Anti Avoidance Rules to address the industry's concerns over misuse of the tax law provisions.
As many as 44 shareholders of Flipkart sold their holdings to Walmart. The income tax law requires the buyer to withhold tax while making payment to the sellers, in case they are not exempted from levy of capital gains tax.
According to sources close to development, the paper proposes four new concepts for making the taxation of foreign companies in India and foreign transaction of Indian companies, especially overseas mergers and acquisitions, more transparent.
Foreign investors made a net investment of Rs 1.1 lakh crore in equities in 2014-15.
Market participants attributed the robust inflows to positive investor sentiment
Analysts expect the inflows to accelerate further.
The Budget has relaxed a few safe harbour rules that aim to make it easier for fund managers overseeing offshore India-focused funds to relocate to the country.
While the situation Sitharaman finds herself in may not be that good, how does it stack up against her three immediate predecessors Pranab Mukherjee, P Chidambaram and the late Arun Jaitley?
India is often viewed as an aggressive tax jurisdiction by domestic and overseas taxpayers, and making the charter as part of the Act may help restore confidence among taxpayers.
The previous United Progressive Alliance government had undertaken some decisions, like introduction of retrospective tax amendments and GAAR, which had dented investor sentiments.
India can attract significant FDI, says experts.
A panel will draft direct tax legislation, keeping in mind the system in other countries, international best practices and economic needs of the country
Overseas funds have been spooked by several policy measures taken by the government in the past few years
FIIs fear short-term capital gains would give rise to tax uncertainty and make their operations difficult, reports Pavan Burugula from Mumbai.
On the telecom sector, he demanded auctioning of more spectrum.
A fundraising boom in the domestic market and tightening of the regulatory framework for overseas issues are responsible for this trend.
While for the consumers, there is some gain and some pain, for India Inc, it's all about compliance, consolidation and parity
Foreign Direct Investment inflows from Mauritius have almost halved during April-January period of last fiscal to $4.11 billion on fears of impact of GAAR and possible re-negotiation of the tax avoidance treaty.
HUFs are not used for tax evasion but for tax avoidance/to save the tax within the four corners of the law. Experts say that there will be little or almost insignificant change in tax revenues.
Overseas investors witnessed net inflow of Rs 24,563 cr in Feb
Even if a company does not invest, it will improve liquidity of banks.
Taxing SoftBank, the largest shareholder in Flipkart with a little over 20 per cent stake, however, will be easier.
It accounted for over a third of foreign direct investment flows into India between 2000 and 2015
Minimum taxes on foreign portfolio investors have been removed.
Ahead of the Economic Survey, industry body Ficci today lowered its GDP growth forecast for the current fiscal, pegging India's economic expansion rate at 5.3 per cent compared to its 5.5 per cent previous estimate.
Pitching for a non-adversarial tax environment, India Inc on Tuesday suggested reduction in tax rates on corporate as well as individuals to boost economic growth.
Amid tax treaty uncertainties, India's share of the number of investments made by global companies through Mauritius has almost halved in the past two years even as Africa's share has surged significantly.
The recommendation, if implemented, is likely to face opposition from the government's key support base among Hindu traders and businesspersons.
The 50-share NSE Nifty was trading lower by 24 points.
This time, the global appetite for risk is in favour of India.
A neutral Budget for media and entertainment sector.
Jaitley is expected to present a common man friendly Budget.
Besides Budget, markets will be driven by global events and the outcome of assembly elections.
Mauritius wanted extension of the benefits limitation clause in India's treaty with Singapore, which we were quite willing to extend, for our price
Portfolio investors based out of the US and other countries with which India does not have favourable tax treaties will have to pay a 15 per cent tax on their derivative transactions, after the Budget decided to classify income from all foreign portfolio investment as capital gains.
The Narendra Modi government's alacrity in promoting ease of tax administration, a critical component in the ease of doing business index, has set in motion several incremental policy and administrative reforms, says Mukesh Butani.
Arun Jaitley said he would put the DTC Bill in cold storage.
Common return for excise duty and service tax was envisaged when 119 services were taxed.
The behaviour of the foreign institutional investors is gauged from the numbers put out by the exchanges and regulators.
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