11 search results for "cbdt"

CBDT Clarification on start-up companies’ assessment involving Sec 56(2)(viib) issue

CBDT has recently issued Circular No. 16/2019 dated August 7, 2019 providing clarification on assessment of start-up companies involving application of Section 56(2)(viib) of the Income Tax Act, 1961. The clarification provides procedure with regard to assessment of such startup entities: Start-ups recognized by Department for Promotion of Industry and Internal Trade (DPIIT) and the case is select...

Extension of due date for filing Form 24Q for Financial Year 2018-19

As you all know, the due date for filing TDS return by employer in Form 24Q for Financial Year (FY) 2018-19 was 31st May 2019. However, for the said FY, Central Board of Direct Taxes (CBDT) issued revised format of Form 24Q vide notification dated April 12, 2019. The revised form includes many additional fields to be reported with respect to salary details, exemption/deductions claimed by employee...

NASSCOM’s submission to CBDT on PE attribution approach

NASSCOM’s has submitted suggestions to Central Board of Direct Taxes (‘CBDT’) on the report of proposed ‘Amendment of rules for profit attribution to Permanent Establishment’ The proposed changes to the rules have been made by a Committee constituted by the CBDT with a mandate to: Examine the existing scheme of profit attribution to PE under the Double Taxation Avoidance Agreements. Examine the co...

Discussion Points on CBDT’s proposal for Amendment of Rules for Profit Attribution to Permanent Establishments (PEs)

Objective The purpose of this document is to discuss the draft report (Report) of the Committee constituted by the Central Board of Direct Taxes (CBDT) on ‘Amendment of rules for profit attribution to Permanent Establishment’. The Report has been issued by the Committee in view of the significance of issues relating to profit attribution to a PE as well as the need to bring greater clarity and pre...

Member consultation: CBDT’s draft rules on attribution of profits to PEs

The CBDT has on 18.04.19 released draft rules (available here) on attribution of profits to permanent establishments. These would have widespread ramifications for multinational companies that are having sales in India or users in India.  The rules appear to be timed with a view to pre-empt the discussions on the digital economy at the OECD/ G20 and could also be a harbinger of the significant eco...

CBDT Extends CbCR deadline for constituent entities having parent entity in USA to April 30, 2019

Central Board of Direct Taxes (CBDT) has issued Circular no 7/2019 dated April 8, 2019 extending the due date for furnishing Country-by-Country Reports (CbCRs) to April 30, 2019 in respect of reporting accounting years ending up to 29 April 2018. The earlier extended due date for such filing was 31 March 2019. This is applicable only to those constituent entities whose parent entities are resident...

Issue of notification by CBDT to give effect to DIPP notification dated February 19, 2019

On March 5, 2019, Central Board of Direct Taxes (CBDT) issued a notification (no.13/2019) to give effect to February 19, 2019 notification issued by DPIIT stating the provisions of Section 56(2)(viib) of the Income Tax Act shall not apply to consideration received by a company for issue of shares that exceeds the face value of such shares, if the said consideration has been received from resident ...

Issue of notification by CBDT to give effect to DIPP notification dated January 16, 2019

The Central Board of Direct Taxes (CBDT) has issued notification no S.O 584(E) dated January 31, 2019 to give effect to  DIPP notification dated January 16, 2019 stating the revised approval mechanism for the purpose of clause (viib) of sub-section (2) of section 56 of the Income Tax Act (commonly referred to as “Angel Tax”). The modified notification of CBDT states that the provisions of Section ...

NASSCOM’s Policy Brief on CBDT Circular No 03/2019

NASSCOM Policy Brief 28.01.2019 CBDT Circular No. 03/2019 dated January 21, 2019 Taxation of income where a private company or a firm receives shares of a private company from a person for no or inadequate consideration Section 56(2)(viia) of Income Tax Act 1961 Central Board of Direct Taxes (‘CBDT’), vide issue of Circular 03/2019 dated January 21, 2019, has reversed the clarification issued on D...

Final notification by CBDT for taxation of foreign Cos held as resident in India as per Place of Effective Management

The much awaited Notification on Place of Effective Management (POEM) guidelines is released and attached herewith for your reference. You would recall that the draft notification was issued  in June last year and we had been requesting for the release of final notification considering the rules become effective from FY 16-17. The notification is deemed to have come into force retrospectively from...

CBDT clarification related to angel tax on start-ups

The income tax department has noted the concern related to angel tax being levied on startups, basis represnetations made by various stakeholders.   In the recent letter addressed to principal commissioners, the CBDT has advised:  No coercive action be initiated for recovery of outstanding demands Expeditious disposal of appeals by commissioner appeals   While fair market value evaluation continue...