Digital companies want more certainty and guidance on tax and royalty charges for India-based operations as they become increasingly embroiled in court disputes with authorities. Recent rulings from the Indian courts and tax departments have sent contradictory messages to digital companies, creating uncertainty about what they consider to be royalty payments that are taxable.
Shailesh Kumar, Director shares his views on aforementioned story for Bloomberg BNA .
The last date for filing returns for AY17 and AY18 was 31 March 2018. According to the income tax department, there is substantial increase in the numbers of registered users on its e-filing portal, which has translated into more returns filed. As on 30 April 2018, there were about 73.9 million registered users on the e-filing portal and about 67.5 million people e-filed their returns during financial year (FY) 2017-18.
Shailesh Kumar, Director shares his views on Five income tax notices you can get and what they mean for
As per public information, in proposed deal, shares of holding company Flipkart Singapore (i.e. a foreign company) would be transferred to Walmart. Generally, any gain arising from sale of shares of a foreign company is not liable to income tax in India. However, pursuant to Vodafone controversy, ‘indirect transfer’ provisions were introduced under domestic tax laws, providing that gains from transfer of shares of foreign company could be taxed in India, if such shares derive its value substantially from assets situated in India, which would be apparently satisfied in Flipkart’s case, since entire business of Flipkart is situated in India.
It is one of the top leading Tax advisory firm in India. The firm takes pride in its expertise in dealing with wide range of corporate issues across various service lines with respect to diverse industries like Oil & Gas, Hospitality, Tele-communications and Health Care etc.
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