Just in:
Andertoons by Mark Anderson for Thu, 28 Mar 2024 // French Leaders Gather for Interfaith Iftar Dinner // Sunshine’s Debut Features Leave Tech World Scratching Its Head // TUMI Hosts Global Launch Event in Singapore to Unveil Women’s Asra Collection and Announce Global Ambassador, Mun Ka Young // Global Audience to Witness Thrill of Dubai World Cup // 2024 Lok Sabha Elections Will Be The Costliest One Till Now In The Whole World // CABSAT 2024 Ushers in 30 Years of Media Innovation // Sharpening the Focus: Sharjah Health Department Refines Evaluation Criteria for “Healthy Schools Programme” // Hope for Respite as UAE Endorses UN Plea for Gaza Truce // Ajman Celebrates Conclusion of Ramadan Activities with Grand Ceremony // Emirati Aid Reaches Ukraine as Food Shortages Bite // Ingdan Announces 2023 Annual Results // Sharjah Chamber Breaks Ground on Final Expansion with New HQ Pact // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // German Job Market Resilience Bodes Well for Economic Recovery // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // Infineon and HD Korea Shipbuilding & Offshore Engineering jointly develop ship electrification technology // Melco Style Presents “SANRIO CHARACTERS STUDIO CITY CARNIVAL” – Explore a SANRIO World of Unlimited Love and Cuteness // Arvind Kejriwal Was Used By BJP In 2011 Movement To Take On The Congress // First-Ever Fortune Innovation Forum Draws Top Global Leaders to Hong Kong, Promoting Agendas On Collective Cross-Sector Advancement //
HomeEconomyNew India tax plan targets foreign firms, rich

New India tax plan targets foreign firms, rich

A cashier counts Indian rupee currency notes inside a bank in MumbaiCompanies with as little as 20 percent of their global assets in India could find themselves facing tax bills in deals involving their domestic units under changes to the tax code that the government proposed on Tuesday.

The government’s Direct Taxes Code 2013 recommended the change along with a new income tax bracket that would require rich people to pay higher taxes.

A previous recommendation in 2010 said that indirect transfers should be taxed in India if the companies involved have at least 50 percent of their assets located in the country.

ADVERTISEMENT

“This (50 percent) threshold is too high. There could be a situation that a company has 33.33 percent assets in three countries but it will not get taxed anywhere,” said the document, available on the Income Tax Department’s website.

Ketan Dalal, joint tax leader at PwC India, told India Insight that the “new threshold of 20 percent is very low”.

The move seems aimed at making sure India gets its due when foreign companies buy and sell subsidiaries or units that are based in India. For instance, Vodafone, which entered India in 2007 via the Hutchison Whampoa deal, is contesting a tax bill of about 112 billion rupees ($1.86 billion) relating to the acquisition. The Indian Supreme Court ruled in 2012 that Vodafone was not liable to pay any tax over the transaction, but the government changed the rules allowing it to make retroactive tax claims on completed deals.

Separately, the tax code proposal also recommends collecting more tax money from people whose income exceeds 100 million rupees ($1.6 million) annually. The new tax rate would be 35 percent rather than the current highest bracket of 30 percent.

Though the new code proposes to relax the age of “senior citizens” for taxation purposes from 65 years to 60 years, it rejected a panel’s recommendation to revise personal income tax brackets for other age groups as it could result in significant revenue losses of 600 billion rupees ($10 billion).

Out of the 190 recommendations made by the Standing Committee on Finance, 153 were proposed to be accepted wholly or with modifications. The government decided to present the DTC as a fresh bill as incorporating the amendments in the DTC Bill 2010 would make it incomprehensible, the document said.-Reuters

ADVERTISEMENT

ADVERTISEMENT
Just in:
Konica Minolta is named ASEAN 2023 Market Leader in Colour Light and Mid Digital Production Printers // Global Audience to Witness Thrill of Dubai World Cup // No running of govt from jail, says Delhi Lt Governor // Infineon and HD Korea Shipbuilding & Offshore Engineering jointly develop ship electrification technology // Hope for Respite as UAE Endorses UN Plea for Gaza Truce // Sharjah Chamber Breaks Ground on Final Expansion with New HQ Pact // Following the Money Trail: US and UK Investigate $20 Billion in USDT Transfers Tied to Sanctioned Russian Exchange // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // Universal Language for Healthcare: General Authority Embraces Global Coding System // French Leaders Gather for Interfaith Iftar Dinner // Sharpening the Focus: Sharjah Health Department Refines Evaluation Criteria for “Healthy Schools Programme” // First-Ever Fortune Innovation Forum Draws Top Global Leaders to Hong Kong, Promoting Agendas On Collective Cross-Sector Advancement // Emirati Aid Reaches Ukraine as Food Shortages Bite // New Nylon Constant Torque Hinge From Southco Provides Position Control In A Compact Package // Andertoons by Mark Anderson for Thu, 28 Mar 2024 // Ingdan Announces 2023 Annual Results // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // Melco Style Presents “SANRIO CHARACTERS STUDIO CITY CARNIVAL” – Explore a SANRIO World of Unlimited Love and Cuteness // Experience Ultimate Shopping Freedom at 4.4 Shopee Spree: Don’t Worry, Shop Shopee! // 2024 Lok Sabha Elections Will Be The Costliest One Till Now In The Whole World //