Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<keyword id="1895647" type="ORGANIZATION" weightage="20" keywordseo="RBI-Governor-Raghuram-Rajan">RBI Governor Raghuram Rajan</keyword> hit back at MNCs and criticised them for bad corporate behaviour. 
 MNCs have often complained about excessive <keyword id="6383566" type="PERSON" weightage="20" keywordseo="Taxation">taxation</keyword>. To this, Rajan said companies weave structures to avoid billions in taxes. 
 "It is also true that MNCs across the world tend to find tax avoidance and sometimes tax evasion as appropriate techniques. Some corporations find that all their <keyword id="388837" type="UNKNOWN" weightage="20" keywordseo="intellectual-property">intellectual property</keyword> is manufactured in Cayman Islands. I haven't seen a lot of smart scientists sitting in Cayman Islands,'' said Rajan. 
 Companies like Vodafone, Shell, etc complain about India's <keyword id="990219" type="UNKNOWN" weightage="20" keywordseo="retrospective-taxation">retrospective taxation</keyword> and claims the tax department makes. 
 
"We have to create tens of millions.. crores of jobs every year. We need to create those jobs because a good job is the best form of inclusion. 
There is tremendous pressure on the political system, and on the regulatory system to deliver those jobs. This is where democracy works through the democratic process coming out as a move towards easing way to growth and easing the way towards making it easier to open businesses,” said Rajan.

MNCs who complain about Indian tax structure, here’s what RBI’s Rajan has to say to you

<ul class="p-rich_text_list p-rich_text_list__bullet"><li>India has decided to do away with a 2012 law that allowed the government to tax profits from earlier years even though theywere not taxable at the time.</li><li>This brings to end a decade-long tussle with foreign companies that saw the law as a deterrent to investments in India.</li><li>Finance Minister Nirmala Sitharaman introduced 'The Taxation Laws (Amendment) Bill, 2021' which will undo the damage from the 2012 law.</li><li>The bill also proposes to refund the amount paid so far, in these cases, without any interest thereon.</li></ul>In a bid to bury the ghost of retrospective taxation, the government on Thursday brought a bill in the Lok Sabha to withdraw all back tax demands on companies such as Cairn Energy and Vodafone and said it will refund the money collected to enforce such levies. Finance Minister Nirmala Sitharaman introduced 'The Taxation Laws (Amendment) Bill, 2021' in the Lok Sabha that seeks to withdraw tax demands made using a 2012 retrospective legislation to tax the indirect transfer of Indian assets. The bill provides for the withdrawal of tax demand made on "indirect transfer of Indian assets if the transaction was undertaken before May 28, 2012 (i.e. the day the <keyword id="996979" type="PERSON" weightage="20" keywordseo="retrospective-tax">retrospective tax</keyword> legislation came into being)." "It is also proposed to refund the amount paid in these cases without any interest thereon," it said. The bill has a direct bearing on long-running tax disputes with British firms Cairn Energy Plc and Vodafone Group. The Indian government has lost two separate arbitrations brought by the two companies against the levy of retrospective taxes. While the government has virtually no liability in the Vodafone case, it has to refund USD 1.2 billion to Cairn Energy for the shares of the company it had sold, tax refund withheld and dividends confiscated. The bill states that the issue of taxability of gains arising from the transfer of assets located in India through the transfer of shares of a foreign company (indirect transfer of Indian assets) was a subject matter of protracted litigation. The Supreme Court in 2012 had given a verdict that gains arising from indirect transfer of Indian assets are not taxable under the extant provisions of the Act. But to circumvent this, the provisions of the Income Tax Act, 1961 were amended by the Finance Act, 2012 with retrospective effect, to clarify that gains arising from the sale of shares of a foreign company is taxable in India if such shares, directly or indirectly, derive their value substantially from assets located in India. "Pursuant thereto, income-tax demand had been raised in 17 cases. In two cases assessments are pending due to stay granted by High Court," the objects of the Bill said. Out of the 17 cases, arbitration under Bilateral Investment Protection Treaty with the United Kingdom and the Netherlands had been invoked in four cases. "In two cases, the Arbitration Tribunal ruled in favour of the taxpayer and against the Income Tax Department," it said in a reference to arbitration awards won by Cairn and Vodafone. "The said clarificatory amendments made by the Finance Act, 2012 invited criticism from stakeholders mainly with respect to the retrospective effect given to the amendments. It is argued that such retrospective amendments militate against the principle of tax certainty and damage India's reputation as an attractive destination," it said. While the government has in the past few years brought major reforms in the financial and infrastructure sector to create a positive environment for investment in the country, "the retrospective clarificatory amendment and consequent demand created in a few cases continue to be a sore point with potential investors," it said. The country today stands at a juncture when quick recovery of the economy after the COVID-19 pandemic is the need of the hour and foreign investment has an important role to play in promoting faster economic growth and employment. "The Bill proposes to amend the Income-tax Act, 1961 so as to provide that no tax demand shall be raised in future on the basis of the said retrospective amendment for any indirect transfer of Indian assets if the transaction was undertaken before 28th May 2012 (i.e., the date on which the Finance Bill, 2012 received the assent of the President)," it said. It further proposed to provide that the demand raised for indirect transfer of Indian assets made before May 28, 2012 shall be nullified on fulfilment of specified conditions such as withdrawal or furnishing of undertaking for withdrawal of pending litigation and furnishing of an undertaking to the effect that no claim for cost, damages, interest, etc shall be filed. It also proposed to "refund the amount paid in these cases without any interest thereon," it said. The bill proposes to amend the Finance Act, 2012 so as to provide that the validation of demand under section 119 of the Finance Act, 2012 shall cease to apply on fulfilment of specified conditions such as withdrawal of pending litigation and furnishing of an undertaking that no claim for cost, damages, interest, etc shall be filed. SEE ALSO <a href="https://www.businessinsider.in/tech/news/google-is-now-using-chrome-as-another-security-layer-for-account-sign-ins/articleshow/84975356.cms">Google is now using Chrome as an added security layer for account sign-ins</a> <a href="https://www.businessinsider.in/stock-market/news/how-to-check-allotment-status-of-glenmark-life-sciences-ipo/articleshow/84978486.cms">Glenmark Life Sciences IPO: How to check allotment status, listing date and more</a>

Indian government brings in a bill to bury the infamous retrospective tax that haunted Cairn and Vodafone for nearly a decade

<keyword id="6355261" type="POSITION" weightage="100" keywordseo="Finance-minister">Finance Minister</keyword> Arun Jaitey is busy presenting the <keyword id="3206186" type="UNKNOWN" weightage="100" keywordseo="Union-Budget-2016">Union Budget 2016</keyword> in the parliament, and people are waiting with bated breaths for the tax announcements to be made. 
 
If reports are to be believed, Finance Ministry wants to remove certain unwanted discretions so that the taxation structure can be streamlined and India can come out as an attractive investment destination. 
 By removing these unwanted discretions, the finance ministry aims at making taxation guidelines clear, so that controversies pertaining to retrospective amendment of tax laws can be prevented. In doing so, the ministry will be stressing on transparency, predictability and stability in the <keyword id="3264804" type="UNKNOWN" weightage="100" keywordseo="indian-taxation-system">Indian taxation system</keyword>. 
 
Last year, Jaitley had announced phased reduction in corporate tax to 25% and elimination of tax exemptions to companies in what was his second speech as the Finance Minister. 
 
<a href="http://i0.wp.com/www.tkbsen.in/wp-content/uploads/2016/02/Arun-Jaitley-21022016.jpg?resize=800%2C600">Image source</a>

Budget 2016: Finance Ministry aims to remove unwanted discretion from the Indian taxation system

With retrospective <a href="http://www.businessinsider.in/budget-2016/tax">taxation</a> continuing to rile foreign investors, the Budget tomorrow may look to address their concerns with a view to resolving the legacy issues. 
 Chief Economic Advisor <keyword id="6355547" type="PERSON" weightage="20" keywordseo="Arvind-Subramanian">Arvind Subramanian</keyword> said that the present government is taking "consistent steps" to deal with the legacy tax issues to regain investor confidence. 
 
"Slowly, slowly they (government) are cleaning up the legacy issue. I think they will continue to do so going forward and hopefully so in the Budget. It's a long drawn agenda that we need to clean up tax system," he said. 
The continuation of multi-billion dollar tax liability imposed by the previous UPA government using a retrospective legislation, has been a matter of concern for foreign investors who had hoped that the BJP government will quickly resolve them. 
 
 
Earlier this month, the tax department took the unusual step of sending a reminder notice to Vodafone for payment of Rs 14,200 crore of taxes on an issue that is under arbitration. 
 
Even after two years, the arbitration in the <a href="http://www.businessinsider.in/searchresult.cms?query=Vodafone+">Vodafone</a> case has not yet started in absence of appointment of a presiding judge on a three member arbitration panel. 
 
The Rs 10,247 crore tax issue of Cairn Energy Plc of UK could manage to get a full panel constituted, even though the process started much later than Vodafone, only after the issue was brought to the notice of Prime Minister's Office. 
 Both Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword> and Finance Minister <a href="http://www.businessinsider.in/searchresult.cms?query=Arun+Jaitley+">Arun Jaitley</a> have repeatedly stated that no new tax liability would be created using the retrospective law, the lingering of the disputes has not gone down well with foreign investors. Many of them had hoped that the government may use the A P Shah panel that had sorted out the contentious issue of levy of <keyword id="73398" type="ORGANIZATION" weightage="20" keywordseo="MAT">MAT</keyword> on capital gains made by FPIs and FIIs, to resolve these legacy issues. 
 
A top executive at a foreign company the easiest way to resolve these issues is to refer the pending cases to the Shah panel as they had done in the MAT issue and implement its recommendations. 
 
Subramanian said the government had proactively resolved the MAT issue and is working to do so for the remaining legacy issues.

Budget
2016 may address retrospective tax concerns, says Chief Economic Advisor Arvind Subramanian

The tax department gave a huge respite to Foreign Portfolio Investors (<keyword id="2005494" type="UNKNOWN" weightage="20" keywordseo="FPIs">FPIs</keyword>) after it put its circular on indirect transfer of shares on hold. 
 
FPIs feared multiple taxations after the Central Board of Direct Taxes (CBDT) came out with a notification giving 19 illustrations with regard to how the indirect transfer regulations would kick in and the tax impact. 
 After receiving several representations from various FPIs, FIIs, Venture Capital Funds and other stakeholders who said that the circular does not address the issue of possible multiple <keyword id="6383566" type="PERSON" weightage="20" keywordseo="Taxation">taxation</keyword> of the same income. 
 
"The representations made by the stakeholders are currently under consideration and examination. Pending a decision in the matter the operation of the above mentioned circular is kept in abeyance for the time being," CBDT said. 
 
Nangia &amp; Co Partner Amit Agarwal said FII/FPIs are highly sensitive breed of investments and the circular had brought in more apprehensions than clarity. 
 
"The withdrawal of the circular is indeed welcome. The consultative process adopted by the government too deserves appreciation," Agarwal said. 
 
The December 21 circular contained responses to questions raised by various stakeholders in the context of the applicability of the indirect transfer provisions under the Indian I-T Act. 
 
While the circular was intended to provide clarity on the circumstances in which the indirect transfer provisions are to be applied, it fails to address the concerns of various stakeholders, chiefly FPIs, with regard to issues like potential double and triple taxation, onerous compliance requirements, and lack of tax neutral foreign corporate restructuring. 
 
Section 9(1) of the I-T Act was amended by Finance Act 2012 with retrospective effect to provide for taxing the gains arising out of transfer of an asset, even if registered or incorporated outside India, which derives its value, directly or indirectly, substantially from an asset situated in India. 
 
(Image: Thinkstock)

Big relief for foreign portfolio investors! Tax dept holds circular on multiple taxations

<keyword id="15492" type="CITY" weightage="100" keywordseo="Vodafone">Vodafone</keyword> India is facing <keyword id="45031" type="PERSON" weightage="100" keywordseo="Tax">tax</keyword> liability and interest amounting to more than Rs 27,000 crore, the company said in its annual report. Vodafone said its Indian subsidiary had received a letter in January 2013, reminding it of the tax demand of Rs 14,200 crore regarding the dispute over acquisition of Hutchinson in 2007. 
 
The company faces tax demand following the retrospective tax amendment brought about in 2012. 
 The report said, “Vodafone International Holdings BV (VIHBV) has not received any formal demand for taxation following the <keyword id="6374292" type="UNKNOWN" weightage="100" keywordseo="Finance-Act">Finance Act</keyword>, 2012, but it did receive a letter on January 3, 2013, reminding it of the tax demand raised prior to the Indian Supreme Court’s judgment and purporting to update the interest element of that demand in a total amount of Rs 142 billion.” 
 
Besides, the UK-based telecom company is also facing tax liability of more than £1billion. These claims pertain to transfer pricing and value-added tax. 
 
According to the report, “Vodafone India (VIL) and Vodafone India Services Pvt Ltd (VISPL) are involved in a number of tax cases with total claims exceeding £1 billion plus interest and penalties of up to 300% of the principal.” 
 
At current rate, £1 billion is worth Rs 9,900 crore. 
 
The Supreme Court had ruled in favour of Vodafone. However, the government of India amended the law with retrospective effect in 2012.

Vodafone India Faces Tax Liability Of More Than Rs
27,000 Crore

New Delhi, Mar 10 () British oil explorer Cairn Energy Plc expects an international arbitral tribunal to give a decree by the summer of 2020 on its challenge to the Indian government seeking Rs 10,247 crore in retrospective taxes. The three-member tribunal, which had in December 2018 completed main court hearings in the British company's challenge to the Indian government using a retrospective legislation to seek Rs 10,247 crore in taxes, was supposed to give an award by February 2019, but in March 2019, it delayed it to 2019-end and then to the summer of 2020. "All formal hearings and submissions have now been made and the tribunal is in the process of drafting its award. The tribunal has indicated that it expects to be in a position to issue the award in the summer of 2020," Cairn said in its half-yearly earnings announcement on Tuesday. No reason was given by the tribunal for the delay in the award. Cairn said it is seeking full restitution for losses totalling more than USD 1.4 billion resulting from government expropriation of its investments in India in 2014. The company, which gave the country its biggest oil discovery, received a notice from the income tax department in January 2014, requesting information related to the group reorganisation done in 2006. Alongside, the department attached the company's near 10 per cent shareholding in its erstwhile subsidiary, Cairn India. In March 2015, the tax department sought Rs 10,247 crore in taxes on alleged capital gains made by the company in the internal reorganisation. Cairn Energy had in 2010-11 sold Cairn India to Vedanta. Following the merger of Cairn India and Vedanta in April 2017, the UK firm's shareholding in Cairn India was replaced by a shareholding of about 5 per cent in Vedanta issued together with preference shares. In addition to attaching its shares in Vedanta, the tax department seized dividends totalling Rs 1,140 crore due to it from those shareholdings, and set off a Rs 1,590-crore tax refund against the demand. Cairn Energy in 2015 initiated an international arbitration to challenge retrospective taxation. Pending final award, the tax department sold Cairn Energy's shares in Vedanta to recover part of the tax demand. "The Indian income tax department holds Cairn UK Holdings Ltd (a direct subsidiary of Cairn Energy) as an assessee in default in respect of tax demanded on the 2006 transactions, and as such has pursued enforcement against CUHL's assets in India. "To date, these enforcement actions have included attachment of CUHL's shareholding in Vedanta Ltd and sale of 181,764,297 shares and seizure of the proceeds, seizure of the proceeds from the redemption of the preference shares, seizure of the USD 159.8 million dividends due to CUHL, and offset of a USD 222.8 million tax refund due to CUHL in respect of another matter," the statement said. To date, 99 per cent of Cairn UK Holdings Ltd's (CUHL) shareholding has been liquidated by the tax department, it said. The assessment by the tax department of principal tax due on the 2006 transactions is Rs 10,267 crore, plus applicable interest and penalties. "Interest is currently being charged on the principal at a rate of 12 per cent per annum from February 2017, although this is potentially subject to the tax department's Indian court appeal that interest should be back-dated to 2007," it said. "Penalties are currently assessed as 100 per cent of the principal tax due, although this is subject to appeal by CUHL that penalties should not be charged given the retrospective nature of the tax levied." Cairn said it has got legal advice confirming that the maximum amount that could ultimately be recovered from the company by the tax department, in excess of the assets already seized, is limited to the value of CUHL's assets, principally the remaining ordinary shares in Vedanta Ltd. "In March 2015, Cairn filed a Notice of Dispute under the UK-India Bilateral Investment Treaty in order to protect its legal position and seek restitution of the value effectively seized by the Indian income tax department (IITD) in and since January 2014. "Cairn's principal claims are that the assurance of fair and equitable treatment and protection against expropriation afforded by the treaty have been breached by the actions of the IITD, which is seeking to apply retrospective taxes to historical transactions already closely scrutinised and approved by the Government of India. The IITD has attached and seized assets to try to enforce such taxation," it said. Cairn is pleading that the effects of the tax assessment should be nullified and that the company should receive recompense from the government for the loss of value resulting from the 2014 attachment of CUHL's shares in Cairn India Ltd and the withholding of the tax refund, which together total about USD 1.4 billion, according to the statement. "The treaty proceedings formally commenced in January 2016 following an agreement between Cairn and the Republic of India on the appointment of a panel of three international arbitrators under the terms of the treaty. Cairn's statement of claim was submitted to the arbitral tribunal in June 2016 and the Republic of India submitted its statement of defence in February 2017. "Further submissions and document production took place in 2017 and 2018. The main evidentiary hearing of Cairn's claim under the Treaty took place in August 2018 in The Hague with a final hearing in December 2018. All formal hearings and submissions have now been made and the tribunal is in the process of drafting its award. The tribunal has indicated that it expects to be in a position to issue the award in the summer of 2020," it said. Based on detailed legal advice, Cairn said it remains confident that it will be successful in this arbitration and, accordingly, no provision has been made for any of the tax or penalties assessed by the IITD. It had previously stated that the arbitration panel is expected to issue a binding and internationally-enforceable award. ANZ HRS

Cairn expects arbitration award in retro tax case by this summer

<keyword id="64469" type="General" weightage="100" keywordseo="cairn" source="Orion">Cairn</keyword> Energy and <keyword id="2573" type="General" weightage="20" keywordseo="Air-India" source="Orion">Air India</keyword> have jointly asked a New York federal court to stay further proceedings in the British firm's <keyword id="174117" type="General" weightage="20" keywordseo="US-lawsuit" source="Orion">US lawsuit</keyword> targeting the airline for enforcement of a USD 1.2-billion arbitral award. The move follows the government enacting a law to scrap retrospective taxation in the country, which in effect will result in withdrawal of the Rs 10,247 crore tax demand on Cairn, according to court documents reviewed by PTI. The British company had won an international arbitration award against levy of such taxes and sought to take over Air <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword> assets when the government refused to honour the award and pay it USD 1.2 billion-plus interest and penalty. But, last month, the government enacted the Taxation Laws (Amendment) Act, 2021, that scraps all such retrospective tax demands and has agreed to refund Rs 7,900 crore it had seized from Cairn to enforce such demand. Cairn has indicated that the refund, without interest and penalty, was acceptable to it - opening an avenue to settle the seven-year-old dispute. Cairn and Air India in a joint request to US District Judge Paul Gardephe on September 13 stated that a stay on proceedings would give them "additional time to evaluate the effects and implications" of legislation that repealed the retroactive tax. In return for the Rs 7,900 crore, Cairn would drop lawsuits threatening court-ordered seizures of Indian government property abroad. One of those suits was filed in May against state-owned Air India Ltd, which Cairn has said should be considered alter ego of the Indian government. "The implementing regulations are in the rulemaking process and will take some time," the two said in the petition seeking extension of the October 21 deadline for the presentation of case papers and initial pretrial conference on October 28. They requested the court to "stay any further proceedings in this matter through October 31, 2021, and reschedule the initial pretrial conference and, respectively, the deadline for the parties to submit their Joint Pretrial Letter and Proposed Case Management Plan, for new dates in November 2021." "The Parties have conferred and agreed that the stay will facilitate the efficient resolution of the dispute, conserve the Court's and Parties' resources, and is not intended to obstruct or delay," they added. Cairn had on May 14 brought a lawsuit in the New York district court to hold Air India liable as the alter ego of the Republic of India for the obligations the government owes under a foreign arbitral award. The firm separately filed a petition before the District Court for the District of Columbia to recognise and enforce the arbitration award against India on February 12, 2021. Seeking to repair India's damaged reputation as an investment destination, the government last month enacted new legislation to drop Rs 1.1 lakh crore in outstanding claims against multinationals such as telecom group Vodafone, pharmaceuticals company Sanofi and brewer SABMiller, now owned by AB InBev, and Cairn. About Rs 8,100 crore collected from companies under the scrapped tax provision are to be refunded if the firms agreed to drop outstanding litigation, including claims for interest and penalties. Of this, Rs 7,900 crore is due only to Cairn. An international arbitration tribunal in December overturned a levy of Rs 10,247 crore in taxes on a 2006 reorganisation of Cairn's India business prior to its listing. It also asked the Indian government to return the value of shares seized and sold, dividend confiscated and tax refund withheld. This totalled USD 1.2 billion-plus interest and penalty. The government initially refused to honour the award, forcing Cairn to identify USD 70 billion of Indian assets from the US to Singapore to enforce the ruling, including taking flag carrier Air India Ltd to a US court in May. A French court in July paved the way for Cairn to seize real estate belonging to the Indian government in Paris. All these litigations will be dropped once Rs 7,900 crore is paid, Cairn CEO Simon Thomson had told PTI earlier this month. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/bitcoin-mining-isnt-just-consuming-energy-its-also-generating-272-grams-of-e-waste-with-every-transaction/articleshow/86228818.cms">Bitcoin mining isn't just consuming energy, it's also generating 272 grams of e-waste with every transaction</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/ami-organics-ipo-rewarded-investors-with-12288-profit-on-the-second-day-of-listing/articleshow/86228819.cms">Investors who had put money in this IPO made over ₹12,000 profit in 2 days</a>

Cairn Energy and Air India seek stay on New York court proceedings

<ul><li>The <keyword id="6557524" type="ORGANIZATION" weightage="20" keywordseo="central-board-for-indirect-taxes-and-customs">Central Board for Indirect Taxes and Customs</keyword> is proposing to tax earnings from cryptocurrency transactions at 18%. </li><li>Under the regulator’s proposal cryptocurrencies are to be designated as “intangible goods”. </li><li>This should a welcome relief for <keyword id="6354947" type="UNKNOWN" weightage="20" keywordseo="bitcoin">Bitcoin</keyword> traders and miners. By bringing digital currencies into the tax net, the government is legitimising trade in them. </li></ul>After months of confusion over their legal status, it seems the Indian government is planning to regulate the trading of digital currencies like Bitcoin and Ethereum under the Goods and Services Tax (GST) regime. The logic is simple - if people are making money from it, it is a taxable event. Anonymous sources told Bloomberg that profits from digital currency transactions could soon fall <a href="https://www.bloombergquint.com/gst/2018/05/23/india-mulls-gst-on-trading-of-virtual-currencies#gs.aaNCbqA">under the 18% tax slab</a> - the same rate as software and electrical devices - if the Central Board for Indirect Taxes and Customs (CBITC) has its way. This is a little less than the tax rate in the US, where traders are expected to pay 20% on their earnings if they’ve held their digital currency for longer than a year. Barring the tax level, details on how the trade of these currencies would be regulated in India weren’t revealed. And there is no clarity on their status as legal tender. However, the CBITC’s draft framework contained a number of key proposals. Firstly, cryptocurrencies are to be designated as “intangible goods” while the processes involving their mining, storage and transfer will be designated “services”. As a result, cryptocurrency exchanges will have to pay taxes on commissions earned. Secondly, the value of a cryptocurrency will primarily be denominated in rupees. Thirdly, transactions that involve a party outside India will designated as imports in the case of a purchase and exports in case of a sale. Finally, trading profits could be liable for retrospective <keyword id="6383566" type="UNKNOWN" weightage="20" keywordseo="taxation">taxation</keyword> from the date of the GST’s implementation - July 1st, 2017. This could result in quite a revenue haul for the government. In January, Reuters reported that trading volumes in India were increasing by about <a href="https://www.reuters.com/article/us-markets-bitcoin-india-taxes/india-sends-tax-notices-to-cryptocurrency-investors-as-trading-hits-3-5-billion-idUSKBN1F8190?utm_campaign=trueAnthem:+Trending+Content&amp;utm_content=5a63607f04d3013aee752148&amp;utm_medium=trueAnthem&amp;utm_source=twitter">₹20 billion every month.</a> A step in the right direction The news is likely a welcome relief for Bitcoin traders and miners. By bringing digital currencies into the tax net, the government is legitimising trade in them. It could also encourage more people to take part in the trading of these currencies. The next step after taxation, however, is preventing the misuse of digital currencies and tax evasion. Last month, the <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> cracked down on cryptocurrency transactions, <a href="https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR264270719E5CB28249D7BCE07C5B3196C904.PDF">barring any regulated entities like banks from facilitating them</a> after three months. The move was in response to concerns that money was being laundered through digital currency trades and the profits from such trades could be used to finance illegal activities. The order is currently <a href="https://www.bloombergquint.com/law-and-policy/2018/04/22/rbi-circular-barring-banking-service-for-virtual-currencies-challenged-in-court#gs.3TQyKdU">being challenged in court</a>. Should the proposal to tax cryptocurrency trading under the GST regime be approved by the <keyword id="6355040" type="ORGANIZATION" weightage="20" keywordseo="GST-Council">GST Council</keyword>, then it will likely cause the RBI to revoke its outright ban. This would be a win for the government, because if the formal banking system were to embrace cryptocurrency trading, it would bring these transactions right under regulators’ noses and away from the peer-to-peer unregulated market.

India might charge goods and services tax for cryptocurrency dealings

Ahead of Union <keyword id="2783177" type="UNKNOWN" weightage="100" keywordseo="Budget-2016">Budget 2016</keyword>, Finance Minister <keyword id="42575" type="PERSON" weightage="100" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> hinted at major <keyword id="6612393" type="UNKNOWN" weightage="100" keywordseo="Banking-reforms">banking reforms</keyword> in the forthcoming Budget and assured foreign investors that retrospective <keyword id="6383566" type="PERSON" weightage="100" keywordseo="Taxation">taxation</keyword> will be a thing of the past. 

	With the Budget is scheduled for February 29, he did not elaborate on what the shape of the <keyword id="6354778" type="ORGANIZATION" weightage="100" keywordseo="Banking">banking</keyword> reforms will be.<o:p></o:p>

	“We have two tax disputes with large corporates. This we are working to settle amicably,” he said while speaking at the Asia Business Forum 2016 as part of ‘Make in India’ week in Mumbai on Sunday.<o:p></o:p>

	He guaranteed that legacy issues in the tax system will be sorted out.<o:p></o:p>

	The government, according to Jaitley, would maintain an arm’s length in the functioning of banks but will not divest completely from public sector banks.<o:p></o:p>

	“The country has not reached a stage where the government can completely exit its holding in the 27 public sector banks,” he said. <o:p></o:p>

	To professionalise the operations of state-run banks, which control over 70 per cent of the industry, he said that the government has already committed to bringing down its holding up to 51 per cent, he said.<o:p></o:p>

	While talking about the passage of the Goods and <keyword id="645517" type="COMPANY" weightage="100" keywordseo="services-tax">Services Tax</keyword> in the Rajya Sabha, Jaitley said he hopes to “negotiate through” in the coming days. 
	 
	On divestment, the Finance Minister blamed the choppy market for not being able to meet the target.<o:p></o:p>

	The windfall gains from declining oil prices have been used to create infrastructure, he said. However, there is a need to focus on investing in rural roads, electrification and irrigation to push up rural demand, which has been hit by two successive droughts, he added.<o:p></o:p>

	Advising States to reconsider the issue of higher taxes in the tourism sector, Jaitley said the Centre has offered visa-on-arrival facility to 125 countries and this has already resulted in a quantum jump of foreign visitors. 
	 
	Image credit: Indiatimes<o:p></o:p>

Budget 2016: Arun Jaitley hints at big banking reforms, but no full divestment from PSBs

After winning over thousands of Indian-Americans at the <keyword id="8953" type="UNKNOWN" weightage="20" keywordseo="Madison-Square-Garden">Madison Square Garden</keyword> (MSG), Indian Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword> meets top American business big-wigs today in Washington to reposition India as the global brand. 
 
The world's largest democracy looks forward to attract more overseas investors in order to boost its economy and do away with the criticism that had mounted against it under the UPA regime. 
 A group of 11 CEOs– including Google's Eric Schmidt, Citigroup's Michael Corbat, <keyword id="44803" type="CITY" weightage="20" keywordseo="Carlyle-group">Carlyle Group</keyword> co-CEO David Rubenstein, Cargill CEO David MacLennan, Merck CEO Kenneth Frazier, Caterpillar CEO Dough Oberhelman, MasterCard CEO Ajay Banga and <keyword id="54572" type="CITY" weightage="20" keywordseo="PepsiCo">Pepsico</keyword> CEO Indra Nooyi– meets PM Modi over breakfast today. 
	 Six others, who have one-on-one appointment with Modi, include Goldman Sachs's Lloyd Blankfein, Boeing's James McNerney, BlackRock's Laurence Fink, IBM's Ginni Rometty, General Electric's Jeff Immelt and Kohlberg Kravis Roberts (KKR) co-Chairmen and CEOs Henry Kravis and George Roberts, updated <keyword id="882197" type="PERSON" weightage="20" keywordseo="Syed-Akbaruddin">Syed Akbaruddin</keyword>, Ministry of External Affairs (MEA) spokesperson. 
	 
	Here, at Business Insider India, we predict what the Prime Minister would talk about during this much-anticipated meet. 
	 
	1) Turn India into a global manufacturing hub 
	Business is NaMo’s mantra, and that is what we expect him to create in his meetings with global CEOs. We expect that Prime Minister Narendra Modi will try garnering support for his 'Make in India' campaign, which aims to turn the Indian sub-continent into a global manufacturing hub. The ambitious plan entails increasing the growth rate in the manufacturing sector to 10% per year and raising its share to 25%in the overall GDP. If the plan falls in place, it will create job opportunities for over 10 million people residing in the country. 
	 
	2) May lift FDI cap to woo overseas investors To turn 'Make in India' campaign into a grand success, India needs long-term foreign capital or foreign direct investment (FDI) in different sectors. In the last decade, gross FDI inflows into the nation have averaged less than 2% of GDP and the new government will have to up that figure considerably. However, it still remains to be seen how <keyword id="6360789" type="ORGANIZATION" weightage="20" keywordseo="Modi-Government">Modi government</keyword> would do that. Will it lift the FDI cap to woo investors? He surely can, but let’s see if he will. 
	 
	3) May try to bring clean energy in India 
	Modi might try to ensure gas supply from the US and seek aid in shale gas exploration. He might also try to bring in more investments in clean energy technology. India had recently done away with the anti-dumping duty on solar energy equipment to encourage the renewable energy sector, and now the focus is on tapping solar and wind energy. 
	 
	4) Could address taxation issues 
	The biggest task that Prime Minister Narendra Modi has at hand is to convince investors on India’s commitment to faster reforms, especially those related to labour laws, land acquisition and taxation. These taxation issues have been a sore point with global investors for long. The retrospective amendment, introduced in 2012, resulted in high-profile tax enforcement actions against global companies such as Vodafone. These episodes dented India’s appeal as an investment destination, contributing to an image of India as a country that pursues “tax terrorism”. 
	 
	5) Modi may clarify the new government's stand on <keyword id="6533263" type="ORGANIZATION" weightage="20" keywordseo="GAAR">GAAR</keyword> 
	To bring out the investor-friendly image of the ‘New India’ under the rule of the BJP government, Prime Minister Narendra Modi might use the opportunity to clarify the central government's stand on the General Anti-avoidance Rules (GAAR), which had sparked alarm among foreign investors. The provision included tightening rules on investments from countries that have double taxation treaties with India. 
	(Image: Press Information Bureau)

5 Things To Expect Out Of Modi’s Meeting With American Business Heads

Even though the government has decided to repeal the controversial '<keyword id="6406536" type="UNKNOWN" weightage="100" keywordseo="Angel-Tax">angel tax</keyword>', experts believe that a number of start-ups will not be able to benefit from this because of the additions in the new regulation. 
 
'Angel tax' is the tax that the government planned to levy on investments in start-ups; however, since it was considered regressive by many and the fact that it led to many start-ups exiting from the country, it was decided to be amended. 
 
However, start-up experts think that it will still continue to pester start-ups, given that the amendments ask to exempt only those firms that have been classified as start-ups under the new government regulations, which means that only the start-ups stamped from the Inter-ministerial Board of Certification should be exempted from the tax. 
 
For this stamp, start-ups needs to fulfil several criteria like, the company should not be more than five-year old, it should not have turnover exceeding Rs 25 crore, tit should be working towards innovation and commercialisation of new products or services, and it should be driven by technology or intellectual property. 
 
Of course, several start-ups are yet to go for this certification. 
 
Also, the fact that the new regulation will not apply to retrospective investments also leaves many start-ups open to be questioned by tax authorities. 
 "It will definitely have a positive impact but it is not a complete but a partial solution," Saurabh Srivastava, cofounder of <keyword id="328347" type="ORGANIZATION" weightage="100" keywordseo="Indian-Angel-Network">Indian Angel Network</keyword>, told <a href="http://economictimes.indiatimes.com/small-biz/policy-trends/investors-see-devil-in-the-details-say-angel-tax-exemption-will-not-benefit-several-startups/articleshow/52825377.cms">ET</a>. "For all angel investments that were made in the last few years ever since the Section 56 came into being, the start-ups and angel investors are today being harassed by income-tax authorities which have opened up their investment records. This is not a good scenario and is upsetting angels," he said. 
 
Srivastava is in talks with the government so that there is a way to certify angel groups, which would mean that investments made through them will be exempted from taxation. "This will be the next logical step and would solve 99 per cent of the problem," he said. 
 
<a href="https://ithinkbigger.com/wp-content/uploads/2016/03/angel-investor-31816.jpg">Image source</a>

Taxed for being an ‘angel’? Several start-ups won’t benefit even as angel tax is revoked, say experts

Under the wrong impression that disputes related to <keyword id="115548" type="UNKNOWN" weightage="80" keywordseo="minimum-alternate-tax">minimum alternate tax</keyword> (MAT) were on hold for some time, overseas investors got an unexpected jolt last week when the income-tax department issued notices to foreign portfolio investors (FPIs). They were informed that the hearing of MAT disputes would start soon. 
 
The Dispute Resolution Panel (DRP) of the income-tax department sent notices which said the investors would have to submit any additional material in this regard within the next nine days. 
 The investors were relaxed after <keyword id="6355261" type="POSITION" weightage="60" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="80" keywordseo="Arun-Jaitley">Arun Jaitley</keyword>’s reassurance about the retrospective levy of MAT. Further, they thought the hearing is on hold until a newly constituted government panel reported on the matter or the <keyword id="6354977" type="ORGANIZATION" weightage="80" keywordseo="Supreme-Court">Supreme Court</keyword> gave its ruling on a MAT case. 
 
The government last week formed a three-member committee under retired judge AP Shah to see whether MAT could be levied on FPIs. The committee is expected to submit its report in three months. Besides this, a case between the revenue authorities and Castleton (an FPI) is currently pending in the Supreme Court. 
 "The DRP has sent notices to FPIs asking them to immediately submit additional details, which they had not submitted before the <keyword id="147935" type="POSITION" weightage="60" keywordseo="assessing-officer">assessing officer</keyword> or additional grounds regarding their ongoing appeals," Rajesh H Gandhi, partner, tax, <keyword id="6358918" type="PERSON" weightage="80" keywordseo="Deloitte">Deloitte</keyword> Haskins &amp; Sells told the Economic Times. 
 
The dispute, which has unnerved foreign investors, began when the income-tax department started sending notices to FPIs about six months ago asking them to pay MAT for FY12. 
 
Many tax experts say MAT cannot be applied to an entity that doesn't have a so-called permanent establishment in the country. By the last week of March, several FPIs had been served with notices asking them to pay the tax. 
 The government intervened after many FPIs lashed out at what they described as the uncertainty plaguing India's tax administration. The government has been at pains to change the image of India as being aggressive on <keyword id="6383566" type="PERSON" weightage="80" keywordseo="Taxation">taxation</keyword> in order to drum up investment. 
 
The cases filed in the high court have not been heard as yet, presumably because it would ideally like to wait for the committee's report or the Supreme Court judgment, experts said. 
 
(Image: Indiatimes)

On Modi Year 1, bad news for foreign investors!

<ul><li>Shares of Glenmark Life Sciences list at over 4% premium from its price band of ₹695-720 per share.</li><li>The IPO was subscribed 45.08 times on the last day of the bidding.</li><li>The market capitalisation of the company stood at ₹9,267 crore. </li></ul>Shares of Glenmark Life Sciences made a decent listing on National Stock Exchange (NSE) and BSE at over 4% premium from its price band of ₹695-720 per share. Post listing, the market capitalisation of the company stood at ₹9,267 crore, according to BSE data. The shares of Glenmark Life Sciences were trading at ₹756 at 10.01 a.m., on August 6. The grey market price of the stock had also suggested a weak opening for the IPO. Moreover, the IPO saw strong demand from investors on the last day of the initial public offering (IPO) bidding process as the issue size was subscribed 45.08 times on the last day. The IPO has received bids for 66.33 crore equity shares against the IPO size of 1.4 crore equity shares. The issue was open for subscription between July 27 and July 29. Glenmark Life Sciences was looking to raise ₹1,060 crore through the IPO. From the overall IPO proceeds, ₹800 crore will go to the promoter Glenmark Pharmaceuticals as payment for the spin-off. In 2019, the API manufacturing business of Glenmark was spun off into Glenmark Life Sciences as part of a broader reorganisation focusing on the API business. Further, the company intends to use the proceeds from the IPO for capital expenditure requirements which includes the expansion of capacity at the Dahej (Gujarat) manufacturing site to meet the anticipated future demand of its generic active pharmaceutical ingredients (API) products. Glenmark Life Sciences is a leading developer and manufacturer of select high value ingredients that go into drugs for treating chronic illnesses, including cardiovascular disease, central nervous system disease, pain management and diabetes, according to the company’s IPO prospectus filed with the regulator. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/cairn-energy-retrospective-tax-case-amendment-bill-indian-parliament/articleshow/85090776.cms">Cairn Energy in wait and watch mode even after the bill to kill retro tax is tabled in the Parliament </a> <a href="https://www.businessinsider.in/policy/foreign-policy/news/retrospective-tax-taxation-and-industry-experts-cheer-withdrawal/articleshow/85076739.cms">Taxation and industry experts cheer the potential withdrawal of retrospective tax </a>

You Searched For "retrospective taxation" and got 14 results

MNCs who complain about Indian tax structure, here’s what RBI’s Rajan has to say to you

BI India Bureau

Indian government brings in a bill to bury the infamous retrospective tax that haunted Cairn and Vodafone for nearly a decade

PTI

Budget 2016: Finance Ministry aims to remove unwanted discretion from the Indian taxation system

Budget 2016 may address retrospective tax concerns, says Chief Economic Advisor Arvind Subramanian

BI India Bureau

Big relief for foreign portfolio investors! Tax dept holds circular on multiple taxations

BI India Bureau

Vodafone India Faces Tax Liability Of More Than Rs 27,000 Crore

BI India Bureau

Cairn expects arbitration award in retro tax case by this summer

PTI

Cairn Energy and Air India seek stay on New York court proceedings

PTI

India might charge goods and services tax for cryptocurrency dealings

Dilsher Dhillon

Budget 2016: Arun Jaitley hints at big banking reforms, but no full divestment from PSBs

BI India Bureau

5 Things To Expect Out Of Modi’s Meeting With American Business Heads

Saba Haider

Taxed for being an ‘angel’? Several start-ups won’t benefit even as angel tax is revoked, say experts

BI India Bureau

On Modi Year 1, bad news for foreign investors!

BI India Bureau

Glenmark Life Sciences IPO: Shares list at 4% premium on exchanges

Bhakti Makwana

Popular Keywords

Buying Guides