Foreign firms with no India set-up exempt from minimum tax
Ahead of Prime Minister Narendra Modi's meeting with US investors, India on Thursday gave a major tax concession to foreign companies that don't have a permanent set-up in India but operate out of countries with which New Delhi has double tax avoidance treaties.
 
Technically, the ministry of finance has decided to amend the Income Tax Act, 1961, with effect from April 1, 2001, in a manner that provisions of Section 115JB shall not apply to a foreign company if it is a resident of a country having a tax treaty with India.
 
In cases where the country of domicile of the foreign company does not have a tax accord with India, this exemption shall not apply, provided the Companies Act, 2013, exempts it from having a registered office in India.
 
In both cases, the foreign companies also should not have a permanent establishment in India.
 
The amendment is important in terms of minimum alternate tax called for by the Income Tax Act, which seeks to bring under the tax net companies that declare substantial profits in books but show their taxable incomes below what is otherwise due.
 
Earlier, a similar concession was extended to foreign funds from April 1 this year.
 
"An appropriate amendment to the Income Tax Act in this regard will be carried out. Earlier, issues relating to taxation of foreign companies, having no permanent establishment in India, have been under consideration of the government," an official statement said on Thursday.
 
"The government has now considered the issue of applicability of minimum alternate tax under Section 115JB of the Income Tax Act to foreign companies having no place of business or permanent establishment in India," the statement added.
 
The concession to the foreign funds was extended based on the recommendations of the A.P. Shah Committee. The government has extended the same to foreign companies as well. 
 
The move comes just ahead of Modi's business meetings during his ongoing visit to the US. He is set to push for some of his pet projects involving domestic and foreign investors, such as "Make in India", "Digital India", "Skill India" and "Start-up India".
 
Last week, just before leaving for Singapore and Hong Kong, Finance Minister Arun Jaitley declared that all tax disputes will be put to rest over the next few days, and that this was a "work in progress" along with steps to make it easier to do business in India.
 
"Since May 2014, a number of tax disputes have been put to rest," the finance minister said and added: "We are trying over the next few days itself (to look at pending disputes) so that many others can be put to sleep -- either by a judicial resolution or some executive resolution."
 
The global investors have been concerned over the provisions of the Income Tax Act, especially on minimum alternate tax, since they had to compute their income tax liabilities based on two sets of provisions -- under normal circumstances and under Section 115JB.
 
A tax liability was raised even if they merely had a representative office in India.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Indian woman killed in Haj stampede
A woman from Telangana is among the 450 Haj pilgrims killed in a stampede in Saudi Arabia on Thursday.
 
An official of the Telangana State Haj Committee told IANS that the deceased had been identified as Bibi Jaan, a resident of Ranga Reddy district near Hyderabad.
 
"We have received information about the death of one woman pilgrim," the official said.
 
Hailing from Mansoorabad in Ranga Reddy, she had gone for the pilgrimage along with three other family members through the state Haj committee.
 
Over people were also injured in the stampede in the city of Mina.
 
Telangana Haj Committee opened a helpline to provide information about the pilgrims to their families here. The helpline number is 040-23214125.
 
Deputy Chief Minister Mohammed Mahmood Ali has expressed grief over the tragedy. He conveyed his heartfelt condolences to the families who have lost their dear ones in the stampede.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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How much does your Facebook account earn?
Do you know what is your worth on Facebook? About $13 -- according to an analysis of the social networking site's ad revenues this year.
 
Facebook, with 1.5 billion users, stands to make $12.76 in ad revenue off each user worldwide and about $48.76 off each user in the US, according to data from research firm eMarketer.
 
According to the firm's estimates, Facebook will capture nearly 65 percent of total social ad spending worldwide in 2015, CNET reported.
 
Facebook is expected to pull in about $16.3 billion in ad revenues globally this year, up 41 percent from the $11.5 billion in ad revenue it earned in 2014.
 
The figures are based on projected ad revenues from Facebook and its popular mobile photo-sharing app Instagram, which now has 400 million users.
 
Instagram will take in about $600 million in ad revenue this year, said eMarketer, accounting for about five percent of Facebook's overall ad revenue.
 
As for Twitter, it is expected to make nearly $7.75 in ad revenue per user worldwide this year and $24.48 per user in the US. Twitter has 316 million users.
 
Twitter is projected to take in $2 billion in ad revenue in 2015, according to eMarketer.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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