DELOITTE EXPERT AMONG TOP 10 INDIRECT TAX ADVISORS IN INDIA

Thesynegyonline Economic Bureau

NEW DELHI, MAY 19 : INDIA Quarterly, a publication of Euromoney Legal Media Group & International Tax Review, announced Deloitte expert- Prashant Deshpande as one of the most admired tax advisors in India in the field of indirect tax. This poll was conducted in a space of two quarters, where over 150 Indian tax payers participated.

The survey was done in early 2011 and more than 150 taxpayers were contacted to highlight the country’s leading indirect tax professionals. The outcome was a list of most prominent tax experts in indirect tax.

Prashant heads the Indirect Tax practice of Deloitte in India and has 28 years of post-qualification experience, of which 14 years were in industry, including a stint as head of Indirect Tax of a large multinational company and the other 14 years in the profession of Indirect Tax consulting.

International Tax Review is a publication and online resource for corporate, policymakers and practitioners around the world.

Thesynergyonline Economic Bureau

NEW DELHI, MAY 17 :
VARIOUS tax and audit experts have called for the transfer pricing system to have inbuilt mechanisms for smooth negotiation and conflict resolution as radical changes are underway with the Direct Tax Code (DTC) most likely coming into effect from April 1, 2012.

There is no formal mechanism for mediation under the law at present, said director general of income tax R N. Dash.

Addressing a conference organised by the apex chamber ASSOCHAM, he said transfer pricing cases will now be subject to audit by the Comptroller and Auditor General (CAG) of India.

Transfer price refers to the amount used in accounting for transfer of goods or services from one responsibility centre to another or from one company to another which belongs to the same group. It is a mechanism for distributing revenue between different divisions which jointly develop, manufacture and market products and services.

Indian authorities are currently examining various models to form new rules and formats aligned with best international practices so that they can be put in place when the DTC is implemented from next financial year, said Mr Dash.

He added that advance price agreement mechanisms will reduce litigations in future.

Mr Rahul Mitra, national head of PricewaterhouseCoopers (PwC) India, said fiscal demands aggravated by downturn place significant pressure on governments to raise revenue and prevent tax base erosion. On the other hand, multinational enterprises face constant competitive pressure to structure global operations effectively and efficiently by achieving lower costs.

This results in substantial increase in number and size of audits, adjustments and disputes. Nearly 70 per cent of global transfer pricing litigation emanates from India, said Mr Mitra.

Senior advocate O P Vaish said transfer prices are significant for both taxpayers and tax administrations because they determine in large part the income and expenses, and therefore taxable profits, of associated enterprises in different tax jurisdictions.

Robust documentation and analysis around potential CUPs (comparable uncontrolled prices) will become increasingly essential as compliance parameters are followed vigorously.

Thesynergyonline Economic Bureau  

NEW DELHI,MAY 13 : INDIA on Friday signed a Double Taxation Avoidance Agreement (DTAA) with the Republic of Colombia for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income.

The DTAA provides that business profits will be taxable in the source State if the activities of an enterprise constitute a permanent establishment in the source State. Examples of permanent establishment include a branch, factory etc.

Profits of a construction, assembly or installation projects will be taxed in the State of source if the project continues in that State for more than six months.

Profits derived by an enterprise from the operation of ships or aircraft in international traffic shall be taxable in India of residence of the enterprise.

Dividends, interest and royalty income will be taxed both in the country of residence and in the country of source.

However, the maximum rate of tax to be charged in the country of source will not exceed 5 percent in the case of dividends and 10 percent in the case of interest and royalties. Capital gains from the sale of shares will be taxable in the country of source.

The agreement further incorporates provisions for effective exchange of information and assistance in collection of taxes between tax authorities of the two countries in line with internationally accepted standards including exchange of banking information and incorporates anti-abuse provisions to ensure that the benefits of the agreement are availed of by the genuine residents of the two countries.

The agreement will provide tax stability to the residents of India and Colombia and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between India and Colombia.