the taxpayer identification number for partnerships is abbreviated as: TIN Taxpayer Identification Number Definition & Example India Dictionary

Section 111A of the Act provides that short-term capital gains on sale of shares of listed companies or units of equity oriented fund should be taxed at 15%. Further, there might be a situation where, the specified assets are not available during the said period of six months. Also, it may be possible that the price/ rate/ cost at which the specified asset is available during the stipulated period may not be viable for the taxpayer to invest. Sub-Section provided that in the year of restructuring deduction will not be allowable to the transferor entity but same will be allowed to the transferee entity as it would have been allowed, had the restructuring not taken place.

Power is the critical infrastructure on which the socio-economic development of any country depends. So a clear and stable tax regime is bare minimum requirement of the investors/developers engaged in development of power plants. The companies engaged in development of power plants were eligible for deduction under section 80-IA of the Act. The Finance Act 2016 has allowed investment linked deduction for the capital expenditure incurred on “infrastructure facility” by inserting provision in section 35AD of the Act. However, the definition of ‘infrastructure facility’ as per section 35AD of the Act does not include power sector and hence companies in the power sector will be deprived of any such benefit under section 35AD of the Act. The definition of ‘infrastructure facility’ specifically includes road, railways, housing, water supply project, port, airport, inland waterway etc. hitherto being eligible for deduction under section section 80-IA of the Act.

Income Tax

These companies can entice their EMS providers, who have already shown inclination to relocate to India if the benefits being made available for domestic manufacturing on populated PCBs along with existing demand for their products. It is accordingly recommended that PCB assemblies of non-ITA-1 items should be subjected to minimum customs duty. This would ensure that the basic customs duty becomes a cost in the import of PCBA which would create duty differentiation between imports and domestic manufacture.

Further, ICDS merely results in multiplicity of accounting methods, increased compliance burden of multiple records, etc. which outweigh the benefits to be gained by application of ICDS. As per the Companies Act, capital reserves cannot be utilized for distribution of dividend by a company. This leads to controversies as to whether capital reserves should form part of accumulated reserves for the purpose of Section 2 of the Act. Illustratively, genuine loans and advances, given on current market rate of interest and which are re-paid during the year, should be excluded from the scope of deemed dividend as these are not a subterfuge for payment of dividend. The tax is attracted, notwithstanding that the loan may be advanced at a fair commercial rate of interest and notwithstanding that preponderant majority of persons owning the concern which received the loan are not even shareholders of the lending company.

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Sub-Section of section 80-IA provided that in the year of restructuring deduction will not be allowable to the transferor entity but same will be allowed to the transferee entity as it would have been allowed, had the restructuring not taken place. However, sub-section was inserted in Section 80-IA of the Act with effect from 1st April, 2008 to provide that nothing contained in sub-Section shall apply to reorganization post 1st April, 2007. A view is expressed that post insertion of sub Section , benefit of deduction under Section 80-IA of the Act will not be available to the amalgamated/resulting entity. Although customs duty on lead metal is pegged at 5% since January 2007, in view of the multiple preferential trade agreements, the effective duty on lead metal is now Nil, especially when imported from South Korea and marginal when imported from Japan. At the same time, the customs duty on raw material is 2.5%, leading to a clear inverted duty structure.

The intention behind beneficial tax regime is to promote Oil and Gas industry by encouraging foreign companies providing services in connection with Oil exploration activities. The essence of the transaction remains unaltered even if these foreign companies are engaged by Indian Contractors for provision of offshore services and not directly by the oil production/processing industry. It is therefore suggested that suitable amendment be made in section 44BB of the Act to provide clearly the applicability of the beneficial tax regime under section 44BB of the Act to sub-contractors. As per provisions of Section 2 of the CGST Act, 2017, non- taxable supply means a supply of goods or services or both which is not leviable to tax under CGST Act, 2017 or IGST Act, 2017.

Tax & Statutory Compliance Calendar for February 2023

However, the https://1investing.in/ of the Act per se do not provide for the mechanism in which foreign reinsurers are required to offer their income to tax in India. Insurance Regulatory and Development Authority allows policyholders to cancel the policy during the free look period . In case of cancellations during free look period, the commission income accrued/paid to agents needs to be reversed/ recovered. A plain reading of section 194D of the Act suggests that TDS has to be deducted on the entire amount credited to the agent’s account and not to the net amount (i.e. agent’s commission adjusted with subsequent debits such as for free look/ cancellation of any policy). CBDT Circular No.120 dated 8 October 1973 clarifies that TDS has to be effected on the gross credit/payment and adjustment is not permissible. In such cases, it is a loss of funds to the insurer if the same is not allowed to be adjusted in the subsequent Tax Deducted at Source payments of Insurer or he is not allowed to claim the same as refund.

Section 47 provides exemption only if the shares of foreign company derive substantial value from shares of an Indian company. Due to this inconsistency in the language of Section 47 vis-à-vis Explanation 5 to Section 9, transfer of shares of a foreign company which derives its value predominantly from assets located in India under a scheme of demerger may be deprived of the aforesaid exemption. It is suggested that GAAR provisions should not be made applicable to abusive transactions (in the case on MNE’s) which are subjected to anti-abuse provisions under the tax treaty pursuant to adoption of the MLI provisions. Once the anti-abuse provisions are inserted in the respective tax treaties through the MLI, the government could then assess the situation and examine if GAAR provisions should be made applicable in the case of the said nonresident taxpayers’ (MNE’s). This would also pave the way for a conducive economic environment and persuade the global multinationals to establish their foot print in India with a clarity on the domestic tax laws prevalent in the country.

Abandonment and site restoration of the taxpayer identification number for partnerships is abbreviated as installations are significant part of the project life cycle in the E&P sector. Section 33ABA of the Act provides for tax deduction on contribution to the Site Restoration Fund subject to a ceiling of 20% of the profits from the business. This ceiling could result in a situation where the assesse is unable to claim full deduction for the amount deposited in the SRF in the absence of sufficient profits. It is, therefore, recommended that the deduction should be based on full contribution without any ceiling on profits. In view of the above, section 44BB of the Act should be amended to provide that statutory taxes and dues recovered by the non-resident service provider from the Indian residents would not form part of gross receipts for computing deemed income under the Section. The Indian entities are apprehensive of stretched application of laws like ‘Right to Use of Goods’, rules of barter etc. and thereby hesitant to freely carry out loan/borrow of in tank LNG so as to enable transfer of goods to that entity which has the demand orders in hand.

FICCI Pre- Budget Memorandum 2018-2019- Suggestions on Tax Issues

Both the above amendments are hindering the ability of tax payers to set-off speculative losses incurred under the erstwhile provisions of the law against the income of the same business which is now treated as non-speculative due to the amendments. Section 80TTA was inserted by the Finance Act, 2012 to provide deduction of up to ₹ 10,000/- in the hands of individuals and HUFs in respect of interest on savings account with banks, post offices and co-operative societies carrying on business of banking. However, it is unlikely that individuals would keep their entire savings in a savings bank account, which earns a much lower rate of interest as compared to term deposits.

The permission has been granted subject to the condition that a tank-wise regular account shall be maintained about the receipt and discharge of duty paid and nonduty paid stocks of ATF. It is suggested that the same facility allowing mixed storage of bonded and duty paid ATF be extended to the intermediate storage tanks. Segregation of the duty paid and bonded ATF can be maintained through accounting records. Even though the same is cenvatable, it can be set off only against payment of NCCD, making the CENVAT credit virtually Nil both to the producer and consumer of crude. For the purpose of transportation, natural gas is liquefied to -160 Degrees for ease of handling. This liquefied natural gas or LNG is transported and stored in special vessels and storage tanks that are heavily insulated in order to maintain the temperature of LNG.

Promote trade receivables and discounting systems amongst MSMEs through planned marketing campaign. The government should alsoconsider divesting its stake in the public-sector banks to enable banks to raise capital from the market.Government can look at having 26% share as a floor and bring in the concept of a golden share to exercise control over critical decisions. It shouldcontinue to address all pending issues related to implementation of GST, especially to ease the compliance requirements related to GST for MSMEs. GST will create a unified market making Indian industry more competitive and will contribute significantly to growth of economy in the medium to long term. Further, India’s foreign exchange reserves stood at an all time high of USD 400.7 billion at end of November, 2017 – providing an import cover for about 12 months.

Hence, given the above, it may be provided that transactions of the above nature be excluded from the definition of “royalty”. Provide a simple reporting obligation which shall comprise of base information such as details of transferor, transferee, subject matter of transfer and its valuation . Further, the current Circular deals only with sale of unlisted shares and the same should be extended to all unlisted securities such as debentures and bonds of public and private limited companies. Tax Identification Number of the deductee in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the deductee is identified by the Government of that country or the specified territory of which he claims to be a resident.

In order to encourage enterprises to formalize, the government mayconsider replacing penalty / fines in case of first non-compliance with training and workshops. Work towardsgreater integration of various digital platforms, by allowing interoperability amongst banks, card networks, and non-banks payment systems. Various parallel regulatory approval processes by multiple regulators should be minimizedto ensure that business activities are not hindered due to lack of coordination between various regulators or cumbersome procedural formalities. Currently, several regulatory agencies have over-lapping jurisdiction, leading to duplication and over-regulation. A regulatory review with consultation and co-operation from commerce and industry associations should be done to avoid duplication and over-regulation. Government can also considercreating aninsurancescheme for receivables financed on TReDS.

• In line with the vision “Make in India” of Hon’ble Prime Minister, the paperboards industry has, for the first time in the country set up a state of art BCTMP manufacturing facility which is operational since March 2017.
• It is believed that there is a need to review the documentation and compliance related processes by the Government and make suitable changes after due consultation with the stakeholders.
• This would enable a non-resident service provider to claim credit of Equalisation Levy paid in India against corporate Income-tax to be paid in the country of residence of such non-resident, subject to the domestic law provisions of the non-resident country.

Making an accounting entry may have an impact on ‘Book Profit’ for calculations under section 115JB of the Act in the year of passing of such entry and may have some further implications if the taxpayer’s Minimum Alternate Tax liability exceeds the computation under normal tax provisions. Similar to provision of section 72A of the Act, carried forward interest expenditure should be allowed for set off in hands of transferee company in case of business organisation such as amalgamation, demerger or slump sale. Appropriate provisions be introduced in the Act to provide that the amount of unabsorbed interest amount shall be available for carry forward to the successor entity in case of business reorganization. For claiming tax neutrality, it is provided that accumulated profits of the company as on the date of conversion should not be paid to the partners of the LLP for a period of three years from date of conversion. Under the Act, LLP is considered akin to a partnership firm and there is no restriction on distribution of the profits of the partnership firm.

As per few studies, India needs to have one AWS at very 5 km and one ARG at every 2 km or one AWS in every village. Cap the fee payable on inter-State transactions on e-NAM at 1% to incentivize large buyers to get onto the platform. Aiming at the betterment of farming community of the country, bringing-in new technologies will ensure this objective. Government is requested to develop usage guidelines as to identify the areas/places where drones should not be used, and promote its usage for the betterment of the agriculture dependent communities at the earliest. The HSN code 8467 is for any kind of mechanical tool which may be used in any industry as there are separate codes for agricultural purpose and in this description, agriculture, horticulture or forestry is not mentioned.