Doing Business in India - RSM Austria

More documents

Recommendations

Info

7.3 Advance Rulings The Indian government has constituted an “Authority for Advance Ruling”. Nonresident taxpayers can obtain rulings in advance from the said authority on questions of law or fact, in relation to a transaction undertaken or proposed. A time limit of six months has been provided for the pronouncement of an advance ruling. The advance ruling once pronounced is binding on the applicant and on the income tax authorities in respect of the specific transaction for which advance ruling was sought. The advance ruling is not appealable. From 1 October 1998, the concept of advance ruling is extended to a resident in India falling within such class or category of persons as the Central government may by notification in the Official Gazette, specify in this behalf. The authority shall give a decision in relation to an assessment which is pending before any income-tax authority, or the Tribunal in case of resident applicant. The decision shall include the decision on question of law or fact arising out of the orders of assessment in respect of which application has been made by resident applicant. 8.0 OTHER DIRECT TAXES 8.1 Securities Transaction Tax (STT) Sr. No. STT shall apply to taxable securities transactions entered into on or after 1 October 2004 entered into through recognized stock exchanges in India. The taxable securities transaction shall attract STT with effect from 1 June 2006 at the rates specified below Type of transactions 1. Delivery based on purchase of an equity share in a company or a unit of an equity oriented fund, entered in a recognized stock exchange 2. Non-delivery based on sale of an equity share in a company or a unit of an equity oriented fund entered in a recognized stock exchange Payable by buyer / seller Both buyer & seller STT rate 0.125% Seller 0.025% 3. a. Sale of an option in securities b. Sale of an option in securities, where option is exercised c. Sale of futures in securities 4. Sale of units of an equity oriented fund to the mutual fund Seller Purchaser Seller Seller 0.017% on option premium 0.125% on the settlement price 0.017% 0.25% “Taxable securities transaction” means a transaction of (a) purchase or sale of an equity share in a company or a derivative or a unit of an equity oriented fund, 126 DOING BUSINESS IN INDIA
entered into in a recognized stock exchange; or (b) sale of a unit of an equity oriented fund of specified mutual fund. The value of taxable securities transaction shall be: i. the aggregate of the strike price and the option premium, in case of taxable securities transaction relating to derivative being “option in securities”; ii. the price at which “futures” is traded, in case of taxable securities transaction relating to derivative being “futures”; and iii. the price at which securities are purchased or sold, in case of any other taxable securities transaction. Every recognized stock exchange shall collect the securities transaction tax from every person being a purchaser or a seller who enters into a taxable securities transaction in that stock exchange. 8.2 Wealth Tax Wealth-tax in India under the Wealth-tax Act is payable each year on the taxable wealth and depends upon residential status and on citizenship. Taxable wealth includes residential house (other than residential house let out for a minimum period of 300 days during the year) and farm houses, motor cars, jewellery, bullion, yachts, aircrafts, urban land, cash exceeding specified limits as reduced by debts owed and incurred in relation to such assets. However, exemption is available to individuals and HUFs for one house or part of a house or plot of a land comprising an area of five hundred square meters or less. A resident Indian citizen pays tax on his global wealth. If he is a “resident but not ordinarily resident” or a non-resident or a foreign citizen, then his Indian wealth is charged to tax at normal rates and foreign wealth is totally exempt. Wealth-tax in case of individual and companies for the financial year 2009-10 will be charged @ 1% of the net taxable wealth exceeding Rs. 30,00,000. The due dates for filing wealth-tax returns are same as for filing Income-tax returns. 8.3 Gift Tax Gift tax has been abolished with effect from 1 October 1998. 8.4 Estate Duty Estate duty has been abolished since 16 March 1985. 8.5 Interest Tax Interest-tax has been abolished with effect from 1 April 2000. DOING BUSINESS IN INDIA 127
Page 1:
International global excellence in
Page 4 and 5:
Doing business in India
Page 6 and 7:
Marine Drive, Mumbai
Page 8 and 9:
Contents Hawa Mahal, Jaipur
Page 10 and 11:
Education .........................
Page 12 and 13:
SIGNIFICANT COMPANY LAW REGULATIONS
Page 14 and 15:
ANNEXURE 1 Sectors Prohibited for F
Page 16 and 17:
Chapter 1 India - A Profile Golden
Page 18 and 19:
2.2 Language India is a land of man
Page 20 and 21:
5.2 Communication The Indian teleph
Page 22 and 23:
7.5 Public Holidays The statutory p
Page 24 and 25:
CHAPTER 2 INDIAN BUSINESS AND INVES
Page 26 and 27:
This resulted in a fall in the Bomb
Page 28 and 29:
4.3.3 Designs After expiry of three
Page 30 and 31:
non-banking finance activities viz.
Page 32 and 33:
trading in derivative based on BSE
Page 34 and 35:
same as those where concessional fi
Page 36 and 37:
10.3 Low Research and Development C
Page 38 and 39:
CHAPTER 3 BUSINESS ENTITIES 1.0 FOR
Page 40 and 41:
Sr. No. Criteria Requirements 1 Tra
Page 42 and 43:
The project is funded by inward rem
Page 44 and 45:
cause the disassociation of the par
Page 46 and 47:
2.1.2 MOA 2.1.3 AOA Companies for r
Page 48 and 49:
paid up equity capital can be less
Page 50 and 51:
The requirements for public and pri
Page 52 and 53:
3.0. STATUTORY REQUIREMENTS FOR COM
Page 54 and 55:
3.4 Online Filing System Ministry o
Page 56 and 57:
Section Nature of default 168 Defau
Page 58 and 59:
4.0 SIGNIFICANT COMPANY LAW REGULAT
Page 60 and 61:
4.7 Audit Committees For better cor
Page 62 and 63:
The meetings of the board are requi
Page 64 and 65:
Chapter 4 Human Resources Kathakali
Page 66 and 67:
Employee benefit What is it? Applic
Page 68 and 69:
Employee benefit D e p o s i t L i
Page 70 and 71:
2.5 The Equal Remuneration Act, 197
Page 72 and 73:
The Factories Act safeguards agains
Page 74 and 75:
CHAPTER 5 FOREIGN INVESTMENT IN IND
Page 76 and 77:
2.3 Prohibition on investments 2.3.
Page 78 and 79:
ii. Subject to compliance with the
Page 80 and 81:
ii. iii. iv. The NRI investor has t
Page 82 and 83:
ii. On repatriation basis An NRI ca
Page 84 and 85:
Indian company can issue ESOPs to e
Page 86 and 87:
ii. iii. iv. The foreign equity aft
Page 88 and 89:
vi. Branch Offices have to submit A
Page 90 and 91:
ii. ECB up to US$ 20 million or equ
Page 92 and 93: 3.2 Approval Route 3.2.1 Eligible B
Page 94 and 95: 3.2.6 End Use not permitted i. Util
Page 96 and 97: issued by Reserve Bank from time to
Page 98 and 99: Sr. No. Sector/Activity FDI Cap / E
Page 100 and 101: Sr. No. II C POWER Sector/Activity
Page 106 and 107: Sr. No. 29. Sector/Activity Telecom
Page 108 and 109: Chapter 6 Taxation System India Gat
Page 110 and 111: Entity Domestic Company Financial y
Page 112 and 113: **** Mutual funds, other than equit
Page 114 and 115: interest deductible is restricted t
Page 116 and 117: 2.4 Tax Relief In order to encourag
Page 118 and 119: Section Details of Exemption / Dedu
Page 120 and 121: Section 35 DDA 54G 54GA 54EC 10(34)
Page 122 and 123: Sr. No. Nature of activity and loca
Page 128 and 129: Sr. No. xviii Nature of activity an
Page 130 and 131: No deduction under 80IA, 80IB, 80IA
Page 132 and 133: Tax is payable in advance on income
Page 134 and 135: 3.1.2 Other Non-corporate Entities
Page 136 and 137: the Finance Act 2010, 'bullion' is
Page 138 and 139: Rs. 40,00,000. The scheme is applic
Page 140 and 141: 4.5 Income of Offshore Funds Income
Page 144 and 145: 9.0 INDIRECT TAXES 9.1 Goods and Se
Page 146 and 147: on goods manufactured and vice vers
Page 148 and 149: Annexure I Double Taxation Avoidanc
Page 150 and 151: Sr. No. Country Dividend [Note 1] T
Page 156 and 157: ANNEXURE II: TAX DEDUCTION AT SOURC
Page 158 and 159: NOTES 142 DOING BUSINESS IN INDIA
Page 164: RSM International Executive Office,
show all

Doing Business in India - RSM Austria

Create successful ePaper yourself

Delete template?

Save as template?