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="19983534" type="General" weightage="100" keywordseo="Hero-MotoCorp" source="keywords" meta.keywordsubtype="org" meta.entityname="Hero MotoCorp" meta.hostid="83" meta.entityid="Hero MotoCorp">Hero MotoCorp</keyword> on Sunday said it has received a <keyword id="19901479" type="General" weightage="20" keywordseo="demand-notice" source="keywords">demand notice</keyword> of over Rs 17 crore from <keyword id="22828708" type="General" weightage="20" keywordseo="Delhi-GST-authorities" source="keywords">Delhi GST authorities</keyword>. The company has received an order for disallowance of <keyword id="19980589" type="General" weightage="20" keywordseo="input-tax-credit" source="keywords">input tax credit</keyword> for FY 2019-20 from the Office of the <keyword id="20263022" type="General" weightage="20" keywordseo="gst-officer" source="keywords">GST Officer</keyword>, <keyword id="22830157" type="General" weightage="20" keywordseo="Government-of-NCT-of-Delhi" source="keywords" meta.keywordsubtype="org" meta.entityname="Government of NCT of Delhi" meta.hostid="83" meta.entityid="Government of NCT of Delhi">Government of NCT of Delhi</keyword>, the two-wheeler major said in a <keyword id="19954258" type="General" weightage="20" keywordseo="regulatory-filing" source="keywords">regulatory filing</keyword>. The company said the tax demand is for Rs 9,38,66,513, interest Rs 7,32,15,880 and penalty Rs 93,86,651 as per the notice. Based on the company's assessment, the tax demand is not maintainable in law, it added. The input tax credit disallowed by the office of the GST Officer, New Delhi, was rightfully claimed by the company as per the provisions of the GST law but disallowed on account of the supplier's non-compliance, which is not attributable to the company, <keyword id="7029" type="General" weightage="20" keywordseo="Hero" source="Orion">Hero</keyword> MotoCorp said. Accordingly, the company shall take appropriate steps, including filing an appeal, it added. There is no material impact on financials, operations or other activities of the company, Hero MotoCorp said.

Hero MotoCorp gets over Rs 17 crore tax notice from Delhi GST authorities

There is a bad news for <keyword id="6354716" type="CITY" weightage="100" keywordseo="Nokia">Nokia</keyword> India. <a href="http://www.businessinsider.in/searchresult.cms?query=Income+Tax+department+">Income Tax department</a> has slapped fresh tax notice on the firm, which wants the fresh demand to be included in the ongoing negotiations between India and Finland to resolve the Rs 2,000-crore tax dispute which was imposed earlier. 
 
According to a senior <a href="http://www.businessinsider.in/searchresult.cms?query=Finance+Ministry+">Finance Ministry</a> official, the fresh <a href="http://www.businessinsider.in/searchresult.cms?query=Finance+Ministry+">tax demands notice</a> was served to Nokia India for dispute relating to other assessment years, apart from the one being contested currently in ITAT. 
 
However, there is no information about the demand raised or the action that the IT department has proposed. 
 
In 2003, the department had slapped a tax notice of Rs 2,000 crore on Nokia's Indian subsidiary for violating the withholding tax norms since 2006 while making royalty payments to the parent company in Finland. 
 
Nokia's mobile unit has now been sold off to <a href="http://www.businessinsider.in/searchresult.cms?query=Microsoft">Microsoft</a>, but the Chennai factory, which is involved in the tax dispute was not included in the deal. 
 
The company wants the notices to be included in the ongoing discussions under the Mutual Agreement Procedure (MAP), said the official, adding senior officials from India and Finland would meet soon to decide on the course of action. 
 
After being asked about the notice served to the <a href="http://www.businessinsider.in/searchresult.cms?query=telecom+company">telecom company</a>, it said: "Nokia has indeed received a claim from the tax authorities - it is largely about the same dispute as earlier, so we have nothing to add." 
 The government has been emphasising on early resolution of pending <keyword id="411664" type="UNKNOWN" weightage="60" keywordseo="tax-disputes">tax disputes</keyword> with a view to make the tax regime more predictable and investor friendly. 
 
Meanwhile, MAP is an alternative available to taxpayers for resolving disputes involving double taxation. However, there is no time frame for resolving cases under MAP negotiations. 
 
(Image: Indiatimes)

Nokia India in trouble again! Income Tax department slaps fresh tax notice against it

Footwear major <keyword id="19980586" type="General" weightage="80" keywordseo="bata-india" source="keywords">Bata India</keyword> has received a notice from the <keyword id="19980587" type="General" weightage="50" keywordseo="state-tax-officer" source="keywords">State Tax Officer</keyword>, Anna Salai Assessment Circle, Chennai, amounting to Rs 60.56 crore, the company said in a filing to the bourses on Thursday. The notice dated December 27, 2023, pertains to several issues raised in a final audit report on December 25, for the 2018-19 financial year, according to the filing. The issues raised include differences in turnover on outward supplies in the monthly GST returns, differences in tax on outward supplies in the GSTR-9 &amp; GSTR-9C returns, excess <keyword id="19980589" type="General" weightage="50" keywordseo="input-tax-credit" source="keywords">Input Tax Credit</keyword> (<keyword id="19896958" type="General" weightage="80" keywordseo="itc" source="keywords">ITC</keyword>) availed, and <keyword id="19980588" type="General" weightage="50" keywordseo="itc-reversal" source="keywords">ITC Reversal</keyword> on credit note. The company said it initially received an audit notice on April 27, 2023, and submitted relevant documents in response. Bata India was given a personal hearing on January 10, 2024, to present its case and provide further information on the disputed issues, as per the filing. The company expressed confidence in its ability to defend the case before the authorities concerned. "It is believed that the company has a good case to defend the matters without any material financial impact," Bata India said. SEE ALSO:<a href="https://www.businessinsider.in/business/auto/webstories/new-electric-scooter-simple-dot-one-comparison-with-ola-s1-pro-electric-scooter/slidelist/106343351.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/webstories/new-electric-scooter-simple-dot-one-comparison-with-ola-s1-pro-electric-scooter/slidelist/106343351.cms" target="_blank">Simple Dot One vs Ola S1 Pro – price, range and features compared</a><a href="https://www.businessinsider.in/business/auto/news/popular-luxury-cars-in-india-in-2023/slidelist/106325299.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/popular-luxury-cars-in-india-in-2023/slidelist/106325299.cms" target="_blank">Mercedes-AMG SL 55 Roadster to Volvo C40 Recharge – The most popular luxury cars in India this year</a><a href="https://www.businessinsider.in/tech/mobile/news/iqoo-12-vs-oneplus-11-vs-samsung-galaxy-s23-the-battle-of-the-affordable-flagships/articleshow/106200031.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/iqoo-12-vs-oneplus-11-vs-samsung-galaxy-s23-the-battle-of-the-affordable-flagships/articleshow/106200031.cms" target="_blank">iQOO 12 vs OnePlus 11 vs Samsung Galaxy S23 – the battle of the affordable flagships</a>

Bata India gets ₹60 crore sales tax notice

The Income Tax department has sent notices in 68 cases to Foreign Institutional Investors (FIIs) for payment of dues totalling Rs 608.83 crore towards Minimum Alternate Tax (MAT), Parliament was informed today. 
 
 
"The applicability of MAT provisions is a legal issue and wherever the cases require application of MAT provisions, the same is being done," Minister of State for Finance Jayant Sinha said in a written reply to Lok Sabha. 
 
 
When asked if the tax department has slapped notices to 100 overseas funds for evasion of tax to the tune of USD 5-6 billion, Sinha said notices were issued only in 68 cases, envisaging total tax demand of Rs 602.83 crore. 
 
 
"Tax notices have been issued in 68 cases of overseas funds to bring to tax the book profits as per MAT provisions under section 115JB of the Income Tax Act, 1961. So far, total tax demand of Rs 602.83 crore has been raised," the Minister said. 
 
Following a court ruling, the Income Tax department had slapped notices on foreign portfolio investors (FPIs), saying they have to pay 20 per cent MAT on untaxed capital gains made by them over the past three years. 
 
 
As the issue has generated a lot of controversy, Finance Minister Arun Jaitley is expected to come out with some clarification at the time of his reply to the debate on the Finance Bill in the House. 
 
According to experts, foreign investors paying capital gains tax in their home nations will not be subject to the 20 per cent minimum alternate tax (MAT) in India. 
 
 
Besides, investors coming from nations with which India has a double taxation avoidance agreement (DTAA) such as Mauritius and Singapore may be exempt as there is no tax on capital gains there.

Know why Foreign Investors will be very angry with
Modi and his government right about now

<ul class="summary-list"><li>The state of California has issued multiple tax notices to Yeezy Apparel, according to NBC News.</li><li>The legal claims date back to 2020 until as recently as September, and allege a $600,000 debt.</li></ul>Kanye West's company owes the state of California $600,000 in unpaid taxes, according to government records seen <a href="https://www.nbcnews.com/business/taxes/kanye-west-yeezy-ye-debt-tax-finances-money-net-worth-rcna58980">by NBC News.</a>Over the last two years, the state has issued multiple tax liens – legal claims for unpaid debts – against Yeezy Apparel, NBC reported.The latest notice was sent in September this year, but others date back to February, July 2021, and 2020.Yeezy Apparel is a fashion design and merchandising business which started in 2017, according to <a href="https://bizfileonline.sos.ca.gov/search/business">public business records.</a> It's one of five Yeezy companies based in California which are managed by West. Last year, <a href="https://www.businessinsider.com/yeezy-pay-close-1-million-settle-civil-lawsuit-over-shipping-2021-11">Yeezy Apparel had to pay a $950,000 settlement</a> to the Los Angeles district attorney, over a lawsuit alleging "unlawful business practices and false advertising by failing to ship items in a timely manner."The company is also recorded as being in "good" standing by both the California franchise tax board and secretary of state.But tax-law experts told NBC that the tax notices indicate big problems at Yeezy Apparel."Multiple California tax liens, adding up to $600,000, that's certainly a sign of either extreme incompetence or extreme cash problems," said Edward McCaffery, a tax law professor at the University of Southern California."That is kind of an amber alert for the financial health of the enterprise."The California franchise tax board and secretary of state did not immediately respond to Insider's request for comment, sent outside normal US working hours.Kanye West, who is now known as Ye, has faced massive financial losses in the wake of a string of controversies, including <a href="https://www.insider.com/twitter-removes-kanye-west-tweet-about-jewish-people-2022-10">his frequent antisemitic comments.</a>Adidas, Balenciaga, and GAP were among the <a href="https://www.businessinsider.com/kanye-west-companies-cutting-ties-adidas-gap-balenciaga-vogue-tweet-2022-10">companies who cut ties with Ye</a> as a result. Forbes then took him off their billionaires list, and the rapper-turned-businessman later said <a href="https://www.businessinsider.com/kanye-west-adidas-sued-for-275-million-froze-bank-accounts-2022-11">Adidas sued him for $275 million.</a>Ye has since announced a presidential campaign and <a href="https://www.insider.com/youtube-removing-reuploads-of-kanye-west-alex-jones-interview-report-2022-12">appeared on the far-right InfoWars,</a> where he told conspiracy theorist Alex Jones: "There's a lot of things that I love about Hitler. A lot of things."

Kanye West's Yeezy Apparel fashion company owes $600,000 in unpaid tax to California with notices dating back two years, report says

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Kevin Lamarque/ReutersDonald Trump.</div></div></div><ul><li>Another potential problem with the Republican plan for tax reform is starting to get attention in Congress.</li><li>The issue comes in defining what is - and what is not - a business, for the purposes of a major new business tax break.</li><li>There's little consensus on potential "guardrails" for such a provision.</li></ul>I've <a href="http://www.businessinsider.com/trump-tax-plan-small-business-cut-details-2017-9">written before</a> about problems with the provision of the Republican tax framework that President Donald Trump touts as good for small businesses.This tax break would ensure that people who own so-called pass through businesses would be taxed at no more than 25% on income from those businesses, unlike wages, which may currently be taxed at rates up to 39.6%.A major problem with this proposal is most small businesses wouldn't benefit at all. More than 80% of tax filers with small business income are already taxed at rates of 25% or less, so only the wealthiest business owners, who currently face high tax brackets, would get a tax cut.And many of the businesses getting the tax advantage wouldn't be small. The president, who would surely contest the idea that his own businesses are small, <a href="http://www.businessinsider.com/trump-small-business-tax-cut-pass-through-s-corporations-2017-10" target="_blank" rel="noopener noreferrer">would get a big tax break from this provision</a>.But there's another problem with the proposal that's starting to get attention in Congress now - one that will make this provision a huge mess even if you like the idea of a big tax cut for business owners.If you're going to give a tax break for business income, you have to clearly define what's a business and what's just work. That's surprisingly hard. And while tax reform is supposed to make taxes simpler, this tax break is sure to make a lot of people's taxes very complicated.<h2>Josh Barro LLC</h2><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Michael Seto / Business InsiderThat's me.</div></div></div>If this proposal became law, I could form Josh Barro LLC. Instead of drawing a salary, I would charge Business Insider fees for writing services. I would do the same with <a href="http://www.kcrw.com/people/josh-barro">KCRW</a> and any other employers. And then I would tell the IRS all my income was business income, subject to a maximum rate of 25%.Unfortunately for me, but fortunately for the government's finances, the drafters of the Republican tax legislation would like to avoid that.They intend the tax break to go only to bona-fide businesses involving capital investment and job creation, not to independent professionals like lawyers or doctors (or me, in this scenario). So they need to write a rule that puts "guardrails" between real business income and labor income that a taxpayer might claim was business income.As Scott Greenberg of the conservative Tax Foundation describes in <a href="https://twitter.com/ScottElliotG/status/923163745228124161">a useful Twitter thread</a>, there are three main ideas out there about how you might build those guardrails.Unfortunately, none of the ideas are very good.<h2>A simple, economy-wide rule doesn't work well</h2>Sen. Ron Johnson, a Republican from Wisconsin with a background as an accountant, <a href="http://www.washingtonexaminer.com/sen-ron-johnson-lays-down-a-marker-on-tax-cuts-for-non-corporations/article/2638532">has come out strongly against the simplest possible limiting rule</a> for the business tax break - what's known as a "70/30 rule."This rule would say that, if an owner is involved in the management of a business, he or she must treat 70% of the income from that business as though it were salary income for work. Only 30% of the income would be treated as investment income and enjoy the preferential tax rate.This rule is already used to govern a much smaller tax break for S-corporations, and it's based on the idea that, in the whole economy, about 70% of income comes from work and 30% from capital investment. But Johnson points out, reasonably, that it isn't fair to apply the economy-wide ratio to all businesses.At capital-intensive manufacturing firms, much less than 70% of the income accruing to the owner-manager is likely to be truly compensation for his or her management work. On the other hand, at Josh Barro LLC, 100% of the income is labor income; the 70/30 rule would give me a tax break that Johnson and the writers of the tax bill don't intend, while giving less than they meant to give to a guy who owns a factory.<div class="KonaFilter image-container display-table"><div><div class="image on-image">AP</div></div></div><h2>Industry-based rules are problematic</h2>Another fairly simple approach would be to offer the tax break only to businesses in certain industries. This could stop me from getting the tax break, but it would create new unfairnesses and economic distortions.Businesses in some sectors would get a big tax break, while those in other sectors wouldn't, even if some businesses in those sectors really did require a lot of investment and create a lot of capital income.Plus, have you noticed the recent tendency that every startup business claims to be a technology company?I have recently gotten pitch emails about a "digitally native winery" (that is, a wine club that sells through a website) and "a London-based VC-funded tech startup selling original art" (an art gallery that sells through a website.) These sorts of "what industry are you really in?" arguments would start playing out with high-dollar consequences in front of the IRS in addition to the technology press.<h2>A complex rule would be a real mess</h2><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Alex Wong/Getty Images</div></div></div>The third guardrail option, <a href="https://twitter.com/ScottElliotG/status/923165356910436353">as Greenberg describes</a>, is to impose "a holistic, 'facts and circumstances' test to determine how much income needs to be categorized as wages."When tax lawyers and accountants hear the phrase "facts and circumstances," what they hear is themselves getting rich.The idea under this approach is we'd let professionals at the IRS work things out with taxpayers' lawyers and accountants on a case-by-case basis by balancing the results of a variety of qualitative and quantitative tests.There are a number of tests like this in the tax code already. For example, "Are you an employee or are you an independent contractor?" is a question with important tax implications that is answered by a <a href="http://www.oregon.gov/ODA/shared/Documents/Publications/NaturalResources/20FactorTestforIndependentContractors.pdf">20-prong test</a> involving qualitative and qualitative factors.In many cases the answer is obvious, but life is messy and sometimes the prongs point in different directions.This ambiguity about employment status leads to a lot of litigation, as we've <a href="http://www.businessinsider.com/lawyer-fighting-for-uber-drivers-uber-cant-call-itself-an-agent-2017-9" target="_blank" rel="noopener noreferrer">seen in recent years with Uber</a>. The ambiguity also gives companies a lot of latitude to make creative arguments with their lawyers, so they can classify workers as independent contractors when lawmakers probably intended to make them employees.A facts-and-circumstances test for business income would require a large number of high-stakes, subjective decisions in IRS audits and in the tax court. And in the end, it probably wouldn't work very well, since taxpayers would work hard with their lawyers to make creative arguments about why they're entitled to the 25% rate.Republicans have correctly made simplification a major goal of their tax reform. Some provisions of the reform, like raising the standard deduction and eliminating many itemized deductions, would actually make many taxpayers' taxes simpler. But anything involving a new facts-and-circumstances test is going to make a lot of business owners' taxes way more complicated.<div class="KonaFilter image-container display-table"><div><div class="image on-image">Associated Press/Alex BrandonPresident Donald Trump waves as he leaves the Rose Garden of the White House in Washington, Wednesday, July 26, 2017, after speaking during an event with the American Legion Boys Nation and the American Legion Auxiliary Girls Nation.</div></div></div><h2>This tax break is not needed at all</h2>There's no really good way to put "guardrails" around the preferential tax rate for pass-through businesses. Fortunately, there is a simple solution: don't enact the tax preference in the first place.Officially, the rationale for this tax break is it's "needed" to go along with the proposed reduction in corporate income taxes. If we cut taxes for large corporations that pay their own taxes, and not for small (and large) pass-through businesses whose owners pay their taxes, then the pass-throughs could end up at a tax disadvantage.But the existing tax code already has provisions to deal with this situation.There is a "check-the-box" rule that allows a limited-liability company to elect to be taxed as though it were a big C-corporation, paying tax separately from its owner. If the corporate tax cut means corporate tax is a better deal than individual tax, company owners can start checking the box.Another kind of pass-through business structure, the S-corporation, is itself merely a tax election. Over the last 30 years, some businesses have started taking this tax election because it became favorable relative to C-corporation taxation. If tax reform switches the advantage back, these businesses can change their tax elections again.The idea that pass-through businesses should be entitled to the same tax terms as corporations is fair enough. But the 25% limit goes too far, offering many pass-throughs a much lower total tax burden than C-corporations. It will be essentially impossible to offer the tax break to the intended businesses without opening it up to abuse by high-income workers. And it will cost a great deal of revenue.The best "guardrail" to put around this tax break is not offering it at all. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/lockheed-martin-sr-72-fastest-plane-ever-71-blackbird-military-defense-tech-fastest-spy-plane-mach-2017-10">Everything we know about the mysterious SR-72 - Lockheed Martin's successor to the fastest plane ever</a></h3> <div> </div> </div>

Republicans are starting to notice another big problem with their tax plan

<ul><li>Babygogo and Travelkhana had ₹72 lakh and ₹33 lakh seized by the income tax deducted from their bank accounts respectively. </li><li>The DPIIT secretary Ramesh Abhishek had assured on February 4 that no coercive action would be taken over <keyword id="6406536" type="UNKNOWN" weightage="20" keywordseo="Angel-Tax">angel tax</keyword> notices. </li></ul>Just when startups in India thought they could soon get a breather from angel tax, India’s <keyword id="65338" type="ORGANIZATION" weightage="20" keywordseo="Income-Tax-Department">income tax department</keyword> has allegedly seized the bank accounts of two startups Travelkhana and Sheroes-owned Babygogo. Siddhartha Ahluwalia, co-founder of Sheroes and founder of Babygogo, told Business Insider he received a deduction SMS from the bank on Wednesday. “We had received no notification from the tax department or bank that this was going to happen,” claimed Ahluwalia, adding the company had been served a tax notice two months ago, to which it had responded by serving all the tax documents. “Yesterday, I received a SMS from the bank about the bank balance – ₹72 Lakh was deducted from the bank,” said Ahluwalia. “Thankfully, we had done the acquisition and all the stakeholders had got an exit and it was not an operational account which is why the balance went to negative ₹72 lakh and it was done by a demand draft.” However, things appear much more serious for Pushpinder Singh, founder of TravelKhana. Singh has gone on Twitter to say “The bank manager said that 4 IT inspectors came and forced the bank manager to make DDs from all accounts. The bank manager said that this is commonplace these days.” Singh claims The Central Board of Direct Taxes <a href="https://inc42.com/features/the-curse-of-angel-tax-travelkhana-left-with-zero-money-after-cbdt-seizes-inr-33-lakh-freezes-accounts/">seized</a> ₹33 lakh while also freezing TravelKhana’s bank accounts. Singh, who has called it out on Twitter as “tax terrorism,” has also tweeted about how this was investment money for which shares had been issued and filings done with Registrar of Companies and RBI. To be sure, according to Pranay Bhatia, tax partner, BDO India, the tax recovery officials are well within their rights to collect and even freeze bank accounts if taxes due haven’t been paid. "From the perspective of the tax officer or the tax recovery officer has no option,” said Bhatia. “With the financial year end coming up, there is a lot of pressure on tax officials to collect outstanding taxes.” However, Bhatia warned that under “principles of natural justice,” the companies should have received a one-week notice to pay or give an explanation as to why they haven’t paid, failing which their accounts could be seized.. According to him, this is why an amendment to the angel tax law is necessary to make the life of a startup easier. On February 4, the Department for Promotion of Industry and Internal Trade had held a meeting with stakeholders to discuss the angel tax issue assuring that solutions would be provided soon. Following that meeting, Ramesh Abhishek, Secretary of DPIIT had <a href="https://www.businessinsider.in/angel-funding-for-startups-to-get-tax-clarity/articleshow/67844987.cms">said</a> that no coercive action would be taken against startups that have received notices. Meanwhile, the CBDT chairman Sushil Chandra on Thursday morning <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/cbdt-chairman-assures-quick-solution-to-startups-tax-issues/articleshow/67893656.cms">spoke</a> at a conference and assured that a solution to address the angel tax issue would soon be provided. See Also: <a href="https://www.businessinsider.in/angel-funding-for-startups-to-get-tax-clarity/articleshow/67844987.cms">Indian government to take a stand on angel tax within a week</a> <a href="https://www.businessinsider.in/indian-government-just-added-a-lot-more-red-tape-for-startups-while-trying-to-fix-the-devilish-angel-tax/articleshow/67572452.cms">Indian government just added a lot more red tape for startups while trying to fix the devilish ‘angel tax’</a>

Two Indian startups say the government broke their faith by raiding their bank accounts

New Delhi, Jul 9 () Chemicals maker BASF India Ltd on Thursday said it has received a tax demand notice of Rs 46 crore from the Karnataka government. The company said that it had earlier got demand notices from the Commercial Tax Department, Karnataka, aggregating to Rs 620.93 crore (including interest and penalty) for the periods 2006-2007 to 2014-2015 by treating the stock transfers of the company's Mangalore plant as interstate sales to dealers. BASF also said that it got a stay order from Karnataka Appellate Tribunal on recovery of demand for the periods 2006-2007 to 2010-2011 and 2014-2015. "The Company has now received a demand notice for the further period i.e. 2015-2016 from Commercial Tax Department, Karnataka, aggregating to Rs 46.01 crore (including interest and penalty) by treating the stock transfers of its Mangalore Plant as interstate sales to dealers," BASF India said in a regulatory filing. The company is in the process of filing its detailed reply/submission/appeals in response to the demand notice, it added. "The company, based on the legal assessment, does not consider these stock transfers as interstate sales and is taking all the necessary legal steps to defend the matter," the filing said. MJH MR

BASF India gets Rs 46 cr tax notice from Karnataka govt

(Image source- TnH Global) <ul><li>In the last month or so, India’s <keyword id="6354751" type="UNKNOWN" weightage="20" keywordseo="income-tax">Income Tax</keyword> Department has issued notices to around 150 <keyword id="1397791" type="PERSON" weightage="20" keywordseo="early-stage">early-stage</keyword> startups requiring them to reconcile outstanding taxes on the angel funds they have received. </li><li>As per the <keyword id="6406536" type="UNKNOWN" weightage="20" keywordseo="Angel-Tax">angel tax</keyword> policy, startups have to pay a 30.9% tax on the positive difference between their valuation post-investment and their FMV, which is classified as “income from other sources.” </li><li>Following a wave of backlash over this policy, Suresh Prabhu, the Minister of Commerce and Industry, tweeted that the <keyword id="26362" type="ORGANIZATION" weightage="20" keywordseo="Government">government</keyword> had “taken up the issue”. The Central Board of Direct Taxation is currently said to be looking into the matter. </li></ul>In the last month or so, India’s Income Tax Department has issued notices to <a href="https://www.bloombergquint.com/technology/indian-startup-founders-lose-sleep-over-angel-tax">around 150 early-stage startups</a>, requiring them to reconcile outstanding taxes on the angel funds they have received. The so-called “angel tax” applies to <keyword id="138263" type="PERSON" weightage="20" keywordseo="startup">startup</keyword>s incorporated before 2016. It relates to the discrepancy between the valuation of a startup, once it receives angel investments, and it’s actual “fair market value” (FMV). Income tax officials calculate the FMV using traditional methods such as the discounted cash flow model that doesn’t take into account intangible assets like “goodwill” and therefore, undervalues the company. As per the policy, startups have to pay a 30.9% tax on the positive difference between their valuation post-investment and their FMV, which is classified as “income from other sources.” Startups incorporated after 2016 under the government’s <a href="https://www.startupindia.gov.in/">Startup India programme</a> are exempt from the tax. Following a wave of backlash over this policy, Suresh Prabhu, India’s Minister of Commerce and Industry, <a href="https://twitter.com/sureshpprabhu/status/1075057424954843137">tweeted</a> on 19 December that the government had “taken up the issue.” The Central Board of Direct Taxation is currently said to be looking into the matter. Prabhu was directly responding to a link to <a href="https://entrackr.com/2018/12/draconian-angel-tax-torture-startups/">an article </a>shared by Mohandas Pai, the chairman of Manipal Global Education, that referred to the taxation policy as “draconian” and a hindrance to innovation. However, the Income Tax Department has maintained that it has only sent notices to companies with financial irregularities since the tax is geared towards <a href="https://www.livemint.com/Companies/hiAMmBRlIu7HxLyulkG6sK/Government-says-genuine-investments-in-startups-will-not-be.html">preventing money laundering </a>and payments to politicians in the form of shares in these unlisted companies. The angel tax has reportedly deterred angel <keyword id="6359051" type="UNKNOWN" weightage="20" keywordseo="investors">investors</keyword> from infusing funds into startups for fear of losing a significant chunk of their investment to the taxman. Entrepreneurs and investors had been hoping for a revision of the policy in the Indian government’s Union Budget for 2018-19 but it didn’t come to pass. A modicum of relief came in April this year when the government excluded startups from the angel tax in the event that the funds raised from angel investors were <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/definition-tweaked-startups-can-seek-exemption-from-angel-tax/articleshow/63741292.cms">₹100 million or less</a>, subject to the approval of an eight-member ministerial committee. Speaking on the tax notices issued to the 150 or so startups, an official from the Income Tax Department told <a href="https://indianexpress.com/article/business/startups/tax-notices-to-startups-have-taken-up-the-issue-says-suresh-prabhu-5501258/">the Indian Express</a> that it could pertain to those startups that aren’t registered with the <keyword id="6365809" type="UNKNOWN" weightage="20" keywordseo="commerce-ministry">commerce ministry</keyword>’s Department of Industrial Policy and Promotion (DIPP). SEE ALSO: <a href="https://www.businessinsider.in/these-are-the-25-most-sought-after-startups-in-india-report/articleshow/65866420.cms">These are the 25 most sought after startups in India: Report</a> <a href="https://www.businessinsider.in/the-youth-boardroom/the-problems-indian-startups-are-facing/videoshow/57129825.cms">The problems Indian startups are facing</a>

The Indian government may roll back a tax on angel investments that is said to be hurting the country’s startup ecosystem

Replying to <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">income tax</keyword> scrutiny notices with supporting documents will soon be just a click away, according to a PTI news report. Instead of having to make the rounds of the tax department with sheaf of papers in response to notices received, tax payers can soon upload them on the department's e-filing portal sitting in comfort of one's own premises. The <keyword id="65338" type="ORGANIZATION" weightage="20" keywordseo="Income-Tax-Department">Income Tax Department</keyword> will very soon launch on its e-filing website a facility for uploading of information sought through scrutiny notices, a senior government official told PTI. "This is part of our focus to reduce human interface and make the department more taxpayer friendly," he said. "The facility to e-file the documents to scrutiny notices is being done to reduce interface between the assessing officer and the taxpayer." Also, the tax department plans to start soon an SMS facility to communicate with taxpayers about any scrutiny notice sent to them. "We will send SMS on the registered mobile number informing them to go to their account in the e-filing portal to see the new notice," the official said. Once the facility is started, tax payers will gan SMS alert of a new notice or information being raised by the tax department. The assessee can then log on to the efiling portal and upload the documents that have been sought. Currently, the department sends SMSes for informing tax payers, especially the salaried class, about the tax deducted at source (TDS). Also, such alerts are sent on filing of tax returns and their acceptance. As many as 3.65 crore individuals filed tax returns in assessment year 2014-15, while only 1 per cent of these are picked up for scrutiny. There are over 29 crore persons holding permanent account number (PAN). Also to avoid discretion to assessing officer, a computer-based programme picks up cases for scrutiny based on the risk parameters identified by the I-T department. The Income Tax Department had earlier said that all tax related proceedings between the assessee and the taxman from the new fiscal will be conducted online. A new link called 'e-proceeding' has already been launched on the e-filing portal through which assessees reply to notice, questionnaire, or letter issued under various sections of the I-T Act.

You Searched For "tax notice" and got 10 results

Hero MotoCorp gets over Rs 17 crore tax notice from Delhi GST authorities

PTI

Nokia India in trouble again! Income Tax department slaps fresh tax notice against it

BI India Bureau

Bata India gets ₹60 crore sales tax notice

PTI

Know why Foreign Investors will be very angry with Modi and his government right about now

BI India Bureau

Kanye West's Yeezy Apparel fashion company owes $600,000 in unpaid tax to California with notices dating back two years, report says

Pete Syme

Republicans are starting to notice another big problem with their tax plan

Josh Barro

Two Indian startups say the government broke their faith by raiding their bank accounts

Sanchita Dash

BASF India gets Rs 46 cr tax notice from Karnataka govt

PTI

The Indian government may roll back a tax on angel investments that is said to be hurting the country’s startup ecosystem

Dilsher Dhillon

Received IT dept letter? Your solution will now be just a click away

BI India Bureau

Popular Keywords

Buying Guides