2Mar

Union Budget 2015-16 India Update : GAAR to incorporate OECD initiative norms on tax avoidance

Government proposes to come out with a modified General Anti-Avoidance Rules by incorporating provisions of the OECD’s BEPS project so as to effectively deal with the problem of tax avoidance by MNCs.

The BEPS initiative aims to ensure that taxes are paid where profits are made. Multinational companies use a wide range of cross border tax planning techniques that result in little or tax liability and such results are referred to as ‘Base Erosion and Profit Shifting’. India has been at the forefront in raising the issues concerning tax avoidance and automatic exchange of information with a view to curbing tax evasion. Finance Minister Arun Jaitley in his Budget for 2015-16 on Saturday had postponed by two years to April 1, 2017 the implementation of the controversial GAAR. It said: “The report on various aspects of BEPS and recommendations regarding the measures to counter it are awaited.

It would, therefore, be proper that GAAR provisions are implemented as part of a comprehensive regime to deal with BEPS and aggressive tax avoidance.” The implementation of GAAR provisions has been reviewed and concerns have been expressed regarding certain aspects. Besides, the BEPS under the Organisation of Economic Cooperation and Development (OECD) is continuing and India is an active participant in the project.

The government had earlier proposed imposing the GAAR from April 1, 2015, for those claiming tax benefit of over Rs 3 crore. The rules are aimed at minimising tax avoidance for investments made by entities based in tax havens. Jaitley had said that general rules of avoidance have now been redefined globally. “Now the new rules of interpretation have been completely done away with this distinction of tax avoidance and tax evasion.

And it is that rule which will have to be applied,” Jaitley had said. The leaders of 20 developing and developed countries at their summit in Brisbane in November 2014 had endorsed the action plan to tackle BEPS, to make sure companies pay their fair share of tax. The G20 action plan on BEPS is expected to be finalised by 2015. The G20 countries include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russian Federation, Saudi Arabia, South Africa, Turkey, United Kingdom, United States and the European Union.

2Mar

Union Budget 2015-16 India Update : What goes up, what comes down

Finance minister Arun Jaitley presented the first General Budget of Prime Minister Narendra Modi’s government on Saturday. The various measures announced by the finance minister has resulted in hike in prices of some commodities and reduction in some. Here is the list:

Service/commodities whose prices will rise:

1) Home

2) Eating out

3) Cold drinks and other aerated beverages

4) Mineral water

5) Internet services

6) Cable/DTH services

7) Laptop

8) Cigarette

9) Tobacco products

10) Mobile phone

11) Commercial vehicles

12) Movies

13) Courier services

14) Healthcare services

15) Laundry services

16) Beauty parlour

17) Air travel

18) ​Imported hazel nuts

19) ​Precious stones

20) ​Branded apparels

21) ​Gym services

22) Gold

Service/commodities whose prices will fall:

1) Leather goods

2) Footwear

3) Agarbattis

4) Pacemaker

5) Tablet PCs

6) Small LCD TV

Stay updated on the go with Epic Research‬ Investment Adviser.

2Mar

Union Budget 2015-16 India Update : Arun Jaitley says corporate tax rate to be cut from 30 pct to 25 pct over 4 yrs

budget 15-16

 

Finance Minister Arun Jaitley presented in Parliament the Union Budget; we present here the best of the Union Budget 2015 in a short and succinct manner:

* Individual tax payers to get income tax benefit of Rs 4,44,200 in a year. 

* Income Tax exemptions to individual tax payers to continue: FM.

* Income Tax reduction from 25 per cent to 10 per cent on royalty for providing technical services: FM

* Service tax rate increased from 12%, plus education cesses to 14%

* Direct tax proposals to lead to Rs 8315 cr revenue loss; indirect tax proposals to yield Rs 23,383 cr

* Negative list in service tax has been pruned by bringing some services under tax net: FM.

* Transport allowance exemption increased from Rs 800 to Rs 1,600

* Addl deduction of Rs 50,000 for contribution in NPS

* Increase in health insurance premium tax benefit from Rs 15,000 to Rs 25,000 and for Sr citizens Rs 30,000

* Wealth tax abolished, addl 2% surcharge on super-rich

* GAAR deferred by 2 years

* PAN quoting to be mandatory for sale over Rs 1 lakh

* Non-filing or wrong filing of tax returns related to foreign assets will lead to prosecution

* To enact a comprehensive law on black money, bill in this session

* Corp tax rate to be reduced from 30% to 25% in next 4 years

Check tax calculator:

* Corp tax exemptions to be phased out from next year

* GST to be implemented from next year

* Non tax revenues in FY16 to be 2,21,733 cr

* Fiscal deficit of 3.9% for FY 16

* Exclusive commercial divisions in high courts to be set up

* Defence allocation for FY16 raised to Rs 2,46, 727 cr

* Spl assistance for Bihar and West Bengal

* IIT in Karnataka and IIMs in J&K and Andhra

* AIIMS in Punjab, J&K, Tamil Nadu, HP and Assam this year

* Set up a fully IT based student aid and loan facility through PM scheme

* Launch national skills mission soon

* Introduce a regulatory reform law for infra

* Parliament needs to take a look at the need to have a procurement law

* Visa on arrival facility to be extended to 150 countries

* To allow foreign investment in alternate investment funds

* Will introduce sovereign gold bonds

* Will introduce gold monetisation scheme

* Employees must be allowed to opt for EPF or NPS

* Public debt management agency to be set up this year

*FMC to be merged with Sebi

* Five ultra mega power projects, each of 5,ooo MW coming, this will bring Rs 1 lakh cr investment

* Ports in public sector will be allowed to be corporatised

* Tax-free bonds in Rail and roads

* Infra investment to go up by Rs 70,000 cr in FY 16

* Atal Pension Yojana for defined pension

* Universal social security system for all Indians to be launched

* Fiscal deficit targets for next 3 years will be 3.9% for FY16, 3.5% for FY17 and 3% for FY18

* We need a well targetted system of subsidies

* Rs 34,699 cr allocation for MGNREGA in FY16; addl 5K cr can be given in MNREGA if there is tax buoyancy

* Will bring comprehensive bankruptcy code in FY16

* We inherited a sense of gloom and doom

* 3 achievements of NDA govt: 1. Jan Dhan Yojana, 2. Coal Auctoions, 3. Swachch Bharat Abhiyaan

* Targetting CPI inflation close to 5% by end of year

* Aiming for a double-digit growth seems feasible very soon

* At least 1 member of every family should have jobs

* Will meet 4.1% fiscal deficit target for FY15

* Cabinet approves Union Budget for 2015-16.

2Mar

Union Budget 2015-16 India Update : All You Need to Know About The Budget

Economic Survey_7

Ahead of the presentation of the Union Budget 2015-16, on Saturday, the Economic Survey 2014 has hinted at some policy proposals of the PM Narendra Modi govt, will it lead to something bigger?

Take a look:

Fiscal deficit: Target of 4.1 % of the GDP retained in FY15, gross deficit of Centre and states may be new norm

CVD: Eliminate all exemptions to countervailing duties to boost ‘make in India’ and end teh negative protection of Indian manufacturers

Gold imports: with improved CAD, “opportune time” to withdraw restrictions on gold imports, cut import duty

Multi-brand Retail: Livberalisation of FDI in retail can help meet investment nd infra deficit which results in supply chain inefficiencies

Infra: Restructure framework for public parivate partnership (PPP) to evaluate risk and financing

Trade: Become a part of the global integrated market by joining Trans-Pacific Partnership or RCEP

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