sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Direct Tax »
 CBDT gets three new members
 Income Tax Returns (ITR) filing: Interest from PPF is tax exempt; but on NSC, it is taxable
 Gift of capital asset to spouse is not chargeable to tax
  Communication to the Central Excise/Service Tax Taxpayers on migration to GST
 Institutions will soon have to file I-T exemption application online: CBDT
 CBDT issues Advisory to file Returns by 31st October
  Income–tax (Dispute Resolution Panel) (First Amendment) Rules, 2018
 CBDT Notification 74/2018 Income Tax
 No Further Due Date Extension for Tax Audit, CBDT Confirms
 Here’s what could happen if you don’t file your income tax returns on time
 Income–tax (Dispute Resolution Panel) (First Amendment) Rules, 2018

CBDT draft notice on computing tax liability of foreign firms
June, 16th 2017

The Central Board of Direct Taxes (CBDT) has issued a draft notification detailing the computation process for various parameters involved in arriving at the tax liability of a foreign company, in case the company qualifies to becomes a resident in India for the first time under the rules of Place of Effective Management (PoEM).

The Central Board of Direct Taxes (CBDT) has issued a draft notification detailing the computation process for various parameters involved in arriving at the tax liability of a foreign company, in case the company qualifies to becomes a resident in India for the first time under the rules of Place of Effective Management (PoEM). Despite becoming a resident of India, the foreign company will continue to be treated as a foreign entity in the first year of the residency. This means that the tax rate in case of foreign company, which is 40%, will continue to ensure no revenue is lost. “The circular has dealt in details with the issues that a foreign company is likely to face in its first year of constituting a resident in India owing to its PoEM being in India,” Rakesh Nangia, managing partner, Nangia & Co, said. The notification details the methodology for arriving at total income, unabsorbed depreciation, set off or carry forward and set off of losses, collection and recovery and special provisions relating to avoidance of tax for such foreign entities.“CBDT has ensured that the computation provisions are in place to give a meaningful implementation to the provisions of PoEM, which will also help in avoiding unwarranted litigation on these issues,” Nangia added.

For instance, the tax record of such a company filed in its country of residence will be taken as the basis for arriving at the written down value (WDV) of the depreciable assets. However, if the company is not assessed to tax by the jurisdiction of its residence, the WDV will be the same as that in the company’s books.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions