ASSOCHAM suggests changes to CBDT in FTC rules
The Dollar Business Bureau As the government is in the process of fine-tuning the tax regime with the nations which already have double taxation avoidance agreement (DTAA) with India, the industry body ASSOCHAM has suggested Central Board of Direct Taxes (CBDT) to make some changes in the planned Foreign Tax Credit rules to ascertain the Indian tax payers are subjected to double taxation incidence on income. ASSOCHAM said in a statement “Difference in accounting practices followed by different countries would lead to a double taxation on the income of an Indian taxpayer.” Recently, ASSOCHAM had invited Rani Singh Nair, a member of the CBDT, and held a detailed discussion on the matter. CBDT has formed a committee to suggest the procedure for grant of Foreign ...
CBDT announces draft norms to determine POEM
The Dollar Business Bureau The CBDT clarified that a foreign company would not be considered a resident taxpayer even if it is fully owned by an Indian firm The Central Board of Direct Taxes (CBDT) on Wednesday released a set of draft principals for determination of Place of Effective Management (POEM) – a move aimed at tightening the tax regime for companies operating in India. As per the guidelines, POEM - an internationally recognised test to determine the residence of a company incorporated in a foreign jurisdiction - would mean a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are made. The draft stressed that the government ...
