Technoglitch
Core Member
The scheme provides an opportunity for settlement of cases emanating from retrospective amendment of tax laws, by asking companies to pay the basic tax demand and get waiver on interest and penalty.
Experts view the scheme as a big step towards tax reform and hope that it would act as a breather for companies like Vodafone and Cairn, which have been facing multi-billion dollar tax liability following retrospective tax amendments made in 2012.
The one-time tax dispute resolution scheme “shall come into force on June 1, 2016 and declarations under this scheme may be made on or before December 31,” said a finance ministry statement, adding that the Central Board of direct Taxes (CBDT) has notified the rules and forms on May 26.
As regards Equalisation Levy, it will apply at 6 per cent on services pertaining to cross border digital transactions.
The levy will only apply to business to business transactions.
At present, equalisation levy is applicable only on payments relating to online advertisements, said C A Gupta, Partner, Deloitte Haskins and Sells.
In order to tap tax on income accruing to foreign e-commerce companies from India, the Finance Act 2016 said a person making payment to a non-resident (who does not have a permanent establishment) exceeding in aggregate Rs 1 lakh in a year will withhold tax at 6 per cent of gross amount paid, as equalisation levy.
Tax dispute resolution scheme to be effective from June 1 - The Hindu
Experts view the scheme as a big step towards tax reform and hope that it would act as a breather for companies like Vodafone and Cairn, which have been facing multi-billion dollar tax liability following retrospective tax amendments made in 2012.
The one-time tax dispute resolution scheme “shall come into force on June 1, 2016 and declarations under this scheme may be made on or before December 31,” said a finance ministry statement, adding that the Central Board of direct Taxes (CBDT) has notified the rules and forms on May 26.
As regards Equalisation Levy, it will apply at 6 per cent on services pertaining to cross border digital transactions.
The levy will only apply to business to business transactions.
At present, equalisation levy is applicable only on payments relating to online advertisements, said C A Gupta, Partner, Deloitte Haskins and Sells.
In order to tap tax on income accruing to foreign e-commerce companies from India, the Finance Act 2016 said a person making payment to a non-resident (who does not have a permanent establishment) exceeding in aggregate Rs 1 lakh in a year will withhold tax at 6 per cent of gross amount paid, as equalisation levy.
Tax dispute resolution scheme to be effective from June 1 - The Hindu
