Wednesday, June 15, 2016

Draft tax rule for avoiding Vodafone-type cases

Budget 2015-16 says indirect transfer overseas would be taxable in India if Indian assets are more than Rs 10 crore and represent at least 50% of the value of all global assets owned by the company concerned. The much-criticized retrospective amendment to the Income Tax Act had made these transfers taxable in India if transfer derives substantial value from Indian assets. CBDT comes out with rules to measure fair market value of shares and assets. Provisions made in the Finance Act, 2015, are prospective.

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