Tax on offshore income for an Indivdual

In todays era – its very common for an individual to have dual set of earnings. He can be a resident of one country, but earning income from other countries in a particular financial year. Such a situation is an indicator of progress and increased opportunities for an individual. However, at the same time issues and complexities surrounding taxation of such income in home country of the individual or at…

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Self Certification for FI Account holders

The income tax department has asked financial institutions (FIs) to ask their non-resident US-based account holders to provide self-certification of their 2014-15 (July-August) accounts by April 30. If norms under the Foreign Account Tax Compliance Act (FATCA) are violated, these accounts will be blocked till the self-certification is received. “The account holders may be informed that, in case self-certifications are not provided till April 30, 2017, the accounts will be…

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Scope of GOOGLE TAX to be enlarged?

Surprisingly there was no mention during the Budget 2017 on increasing the scope of equalisation levy. However, there is some indication that the government does plan to increase the scope of the levy. Under the new definition, the government is looking at a 6% tax levy on all online multinational companies that earn revenue from India. Equalisation levy, colloquially called Google tax, could soon ensnare the likes of IBM, Microsoft,…

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Tax agreement with India comes into force in Singapore

The third protocol amending the existing India-Singapore Double Taxation Avoidance Agreement (DTAA) entered into force on Monday, Singapore’s tax authorities have said. This would mean that the provisions provided in the third protocol — signed in December 2016 — have become law in the island country. Singapore was the largest foreign direct investor into India for the period April 2015 to March 2016, and one of the largest portfolio investors…

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NO POEM in case sales below INR 50 crores

In a clarificatory circular by the CBDT, POEM shall not be applicable to a company having a turnover or gross receipts of INR 50 crores or less in a financial year. Last month, the tax department had come out with the long-awaited Place of Effective Management (POEM) rules that will require foreign companies in India and Indian firms with overseas subsidiaries to pay local taxes based on where the business…

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Receipts towards data processing support not taxable as Royalty or FTS

The assessee is a non-resident company incorporated under the tax laws of Hong Kong. During the assessment year in question, the assessee had entered into a worldwide contract for provision of computing services and data process support to Standard Chartered Bank in 68 countries including India. As per the terms of the agreement, the assessee was responsible to ensure adequate systems, software, hardware and security at a standard facility in…

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Third Protocol Amending The India-Singapore Tax Treaty Signed

This article summarizes the key amendments proposed to the existing Double Tax Avoidance Agreement (DTAA) entered into between India and Singapore in 1994 (1994 DTAA) as amended by a protocol dated 18 July 2005 (2005 Protocol) and the second protocol dated 1 September 2011. The third protocol to amend the 1994 DTAA was signed on 30 December 2016 (the 2016 Protocol) followed by official announcements made by the Government of…

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