Consider a situation where a foreign entity provides loan to an Indian company and receives interest which is not fixed but linked to profits. Or consider a treaty between India and country X whereby sale of shares in an Indian company held by an investor from country X shall be taxed only if the shares … Continue reading Understanding GAAR (General Anti-Avoidance Rules)..
With various announcements in the budget for 2017-18, two important trends that emerge are the thrust on increasing tax/GDP ratio and increasing capital expenditure. For the first time after FY08, tax/GDP ratio is expected to cross 11%. More importantly, a large part of this would come from increase in income tax collection, more distributive method … Continue reading Budget Trends – Increasing Tax/GDP Ratio and Capital Expenditure..