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Ease of doing business: reality check
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Ease of doing business: reality check
The Tax guys are running amuck. They send a notice making a huge retrospective claim on Cairn and blame it on UPA. In the last budget, the FM agreed that demanding MAT from FIIs is not right and exempts them, but the tax dept continues to legally pursue claims on earlier years. Harassment of companies with overseas operations over transfer pricing goes on unabated.
The most boneheaded proposal was this: ""The new measures are part of the government's effort to tackle black money in an non-obstrusive manner. The details will add to the taxman's knowledge about a particular assessee," a senior I-T officer said.
Somebody more sensible must have told the FM that he cant go gallivanting round the world spouting fantastic yarns about ease of doing business while his minions go around doing the exact opposite.
So exactly one day a humiliating climb down:
http://timesofindia.indiatimes.com/business/india-business/Facing-criticism-govt-puts-new-I-T-returns-form-on-hold/articleshow/46973163.cms
Modi fanboys, I finished saying my piece. You can now uncover your ears and stop going la-la-la-la...
The most boneheaded proposal was this: ""The new measures are part of the government's effort to tackle black money in an non-obstrusive manner. The details will add to the taxman's knowledge about a particular assessee," a senior I-T officer said.
Somebody more sensible must have told the FM that he cant go gallivanting round the world spouting fantastic yarns about ease of doing business while his minions go around doing the exact opposite.
So exactly one day a humiliating climb down:
http://timesofindia.indiatimes.com/business/india-business/Facing-criticism-govt-puts-new-I-T-returns-form-on-hold/articleshow/46973163.cms
Modi fanboys, I finished saying my piece. You can now uncover your ears and stop going la-la-la-la...
Merlot Daruwala- Posts : 5005
Join date : 2011-04-29
Re: Ease of doing business: reality check
confuzzled dude wrote:and this
https://such.forumotion.com/t31308-foreign-investors-cry-foul-over-indian-tax-surprise
http://www.wsj.com/articles/india-ends-a-retroactive-tax-raid-1441756517But early this year the Finance Ministry struck back. To everyone’s surprise, they sought to bill foreign investors for years of retroactive taxes under India’s Minimum Alternative Tax, which previously hadn’t applied to them. The MAT took effect in 1996 to ensure that companies with operations in India pay at least 20% tax on profits. In 2012 one tax body issued a nonbinding ruling that foreign investors without operations in India should pay, too. Based on that dubious and largely unnoticed move, officials moved to collect some $6.5 billion in retroactive levies.
Instead of stopping this shakedown, Finance Minister and Modi confidant Arun Jaitley embraced it, saying on television that he could “change the face of Indian irrigation” with the expected revenue. Only when foreign investors started withdrawing from Indian markets did Mr. Jaitley change his tune—a little. The tax dispute is unfortunate, he conceded, but it’s a judicial matter that is beyond his control. “If I waive off” the levy, he said in April, “we will be like a tax haven.”
one step forward and two steps back
confuzzled dude- Posts : 10205
Join date : 2011-05-08
Re: Ease of doing business: reality check
>>>This is not just two steps back. This is outright dumb if you are out trying to drum up business. It is killing the goose before it lays its first golden egg. Sounds like the central-planning mentality where everyone is expected to dance to your tune is alive and well, except in this case those are the folks whom you are looking at to be your saviors.confuzzled dude wrote:confuzzled dude wrote:and this
https://such.forumotion.com/t31308-foreign-investors-cry-foul-over-indian-tax-surprisehttp://www.wsj.com/articles/india-ends-a-retroactive-tax-raid-1441756517But early this year the Finance Ministry struck back. To everyone’s surprise, they sought to bill foreign investors for years of retroactive taxes under India’s Minimum Alternative Tax, which previously hadn’t applied to them. The MAT took effect in 1996 to ensure that companies with operations in India pay at least 20% tax on profits. In 2012 one tax body issued a nonbinding ruling that foreign investors without operations in India should pay, too. Based on that dubious and largely unnoticed move, officials moved to collect some $6.5 billion in retroactive levies.
Instead of stopping this shakedown, Finance Minister and Modi confidant Arun Jaitley embraced it, saying on television that he could “change the face of Indian irrigation” with the expected revenue. Only when foreign investors started withdrawing from Indian markets did Mr. Jaitley change his tune—a little. The tax dispute is unfortunate, he conceded, but it’s a judicial matter that is beyond his control. “If I waive off” the levy, he said in April, “we will be like a tax haven.”
one step forward and two steps back
Kris- Posts : 5460
Join date : 2011-04-28
Re: Ease of doing business: reality check
Kris wrote:>>>This is not just two steps back. This is outright dumb if you are out trying to drum up business. It is killing the goose before it lays its first golden egg. Sounds like the central-planning mentality where everyone is expected to dance to your tune is alive and well, except in this case those are the folks whom you are looking at to be your saviors.confuzzled dude wrote:confuzzled dude wrote:and this
https://such.forumotion.com/t31308-foreign-investors-cry-foul-over-indian-tax-surprisehttp://www.wsj.com/articles/india-ends-a-retroactive-tax-raid-1441756517But early this year the Finance Ministry struck back. To everyone’s surprise, they sought to bill foreign investors for years of retroactive taxes under India’s Minimum Alternative Tax, which previously hadn’t applied to them. The MAT took effect in 1996 to ensure that companies with operations in India pay at least 20% tax on profits. In 2012 one tax body issued a nonbinding ruling that foreign investors without operations in India should pay, too. Based on that dubious and largely unnoticed move, officials moved to collect some $6.5 billion in retroactive levies.
Instead of stopping this shakedown, Finance Minister and Modi confidant Arun Jaitley embraced it, saying on television that he could “change the face of Indian irrigation” with the expected revenue. Only when foreign investors started withdrawing from Indian markets did Mr. Jaitley change his tune—a little. The tax dispute is unfortunate, he conceded, but it’s a judicial matter that is beyond his control. “If I waive off” the levy, he said in April, “we will be like a tax haven.”
one step forward and two steps back
This is Swadeshi Jagran Manch (RSS) written all over.
Marathadi-Saamiyaar- Posts : 17675
Join date : 2011-04-30
Age : 110
Re: Ease of doing business: reality check
http://www.business-standard.com/article/companies/cairn-writes-to-modi-on-retrospective-tax-case-115122000099_1.html
confuzzled dude- Posts : 10205
Join date : 2011-05-08
Re: Ease of doing business: reality check
http://economictimes.indiatimes.com/industry/energy/oil-gas/will-seek-600-mn-from-india-in-damages-cairn-energy/articleshow/50639466.cmsLONDON: British oil firm Cairn Energy on Tuesday said it will seek from India over $600 million in damages for loss it suffered in value of its holding from a Rs 10,247-crore tax demand raised on its eight-year-old internal business recognition.
The Income Tax Department using a retrospective legislation had in January 2014 issued a draft tax assessment order on Cairn Energy over its 2006 internal business reorganisation and barred it from selling its 9.8 per cent stake in Cairn India.
Will this define the legacy of this administration?
confuzzled dude- Posts : 10205
Join date : 2011-05-08
Re: Ease of doing business: reality check
Merlot Daruwala wrote:The Tax guys are running amuck. They send a notice making a huge retrospective claim on Cairn and blame it on UPA. In the last budget, the FM agreed that demanding MAT from FIIs is not right and exempts them, but the tax dept continues to legally pursue claims on earlier years. Harassment of companies with overseas operations over transfer pricing goes on unabated.
The most boneheaded proposal was this: ""The new measures are part of the government's effort to tackle black money in an non-obstrusive manner. The details will add to the taxman's knowledge about a particular assessee," a senior I-T officer said.
Somebody more sensible must have told the FM that he cant go gallivanting round the world spouting fantastic yarns about ease of doing business while his minions go around doing the exact opposite.
So exactly one day a humiliating climb down:
http://timesofindia.indiatimes.com/business/india-business/Facing-criticism-govt-puts-new-I-T-returns-form-on-hold/articleshow/46973163.cms
Modi fanboys, I finished saying my piece. You can now uncover your ears and stop going la-la-la-la...
If by Retroactive Taxation you mean - Tax inspectors could go back seven years, according to Indian law, and could also charge interest and penalties. You should upgrade yourself with the Taxation laws of the US and other Developed Countries. US taxes entities and people for assets held, revenues generated, transactions done across the world even outside its own Tax jurisdiction boundaries. And Uncle Sam can come after you for the same 4 to 7 year tax periods to re-assess your numbers. Why do you think that India doesn't reserve this right. If the Government decided on not exercising its right on this then it is a privilege granted to give boost to a certain segment of economy or sector. This has nothing to do with Taxation being Right or Wrong as your snipped indicated above.
smArtha- Posts : 1229
Join date : 2013-07-29
Re: Ease of doing business: reality check
Unkil, you're barking up the wrong tree. This has nothing to do with the sovereign right to reassess past returns. This is about tax officers arbitrarily extending MAT applicability to FIIs who don't have any business establishment in India and whose capital gains are exempt from Indian taxation under the various tax treaties.
PS: Even such arbitrariness is perfectly fine - sovereign powers trump consistency and common sense too. Just don't go along tomtomming Ease of Doing Business as your greatest accomplishment and your objective while your tax guys go around creatively reinterpreting tax laws. That is hypocrisy.
PS: Even such arbitrariness is perfectly fine - sovereign powers trump consistency and common sense too. Just don't go along tomtomming Ease of Doing Business as your greatest accomplishment and your objective while your tax guys go around creatively reinterpreting tax laws. That is hypocrisy.
Merlot Daruwala- Posts : 5005
Join date : 2011-04-29
Re: Ease of doing business: reality check
...“The Belgian ‘excess profit’ tax scheme, applicable since 2005, allowed certain multinational group companies to pay substantially less tax in Belgium on the basis of tax rulings,”
Damn the Chaddis and RSS. 50-incher Modi should step down.
Marathadi-Saamiyaar- Posts : 17675
Join date : 2011-04-30
Age : 110
Re: Ease of doing business: reality check
....Google to pay back taxes from 2005..
Marathadi-Saamiyaar- Posts : 17675
Join date : 2011-04-30
Age : 110
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