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PLI scheme for electronics manufacturing sees incremental investment of Rs 8,390 CrG20 finance leaders agree to tax super-rich but forum not yet readyDPIIT promotes green logistics industry balancing economic growth and environmentIndia, US ink pact to stymie illegal trafficking of cultural propertyRailways expands tracks by 31,180 kmFroth in Yamuna river: Delhi complains to Centre against UP and HaryanaGovt to enhance reach of Indian Digital Public InfrastructureFormer BJP Minister says BJP has totally failed as Opposition in KarnatakaGovt provides incentives to small tea growersEU penalises 5 countries for infringing budget rulesI-T-Transaction involving transfer of unutilised shares cannot be deemed to be sale of shares so as to attract levy of Long Term Capital Gain u/s 112: ITATChina says Relations with Japan at critical stageST - Once the activity of appellant that is of forfeituring the amount of earnest money is not a declared service, question of retaining said money as consideration for rendering such service becomes absolutely redundant: CESTATEU medicines regulator disapproves Alzheimer’s new drugSC says no restrictions on voluntary name banners along Kanwar route eateriesFM favours debt reduction but sans affecting economic growthKargil Victory Day: PM warns Pak against practising terrorismChina pumps in subsidies worth USD 41 bn into car sectorMisc - Payments made to Government cannot be deemed to be a tax merely because statute provides for their recovery as arrears: SC CBMisc - Royalty not a tax; royalty is contractual consideration paid by mining lessee to lessor for enjoyment of mineral rights & liability to pay royalty arises out of contractual conditions of mining lease: SC CBMisc - Since power to tax mineral rights is provided for in Entry 50 of List II, Parliament cannot use its residuary powers in this subject matter: SC CBCus - Owner of goods has a liability to pay customs duty even after confiscated goods are redeemed on payment of fine - Interest follows: SC

MESSAGE BOARD

   

Netflix is here but where is our 'Netflix' tax framework?


Tax on digital services

There are many methods across the world for taxing cross-border digital delivery of services.

In India we are still not ready with the model legislation and the e-commerce companies are facing many issues in different State with regards to taxation.

It is high time to frame laws in this regards as the internet based delivery of services and goods is going to increase manifold in coming days.

Best way for services is to follow the Japanese model where the service provide should have representative office in India and get registered and pay taxes as per place of supply rules or consumption base tax.

With GST is in the making, we should think of digital services and e-commerce taxation mechanism to avoid loss of revenue as well as ease of doing business.

Generally we are late and start thinking after the damage has been done.
This happened in case of transfer pricing and undervaluation, transfer of profit out of India by way of many transactions.

Arbind Aggarwal

Schneider1 Schneider1 18/01/2016

 

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