CII organises interactive session on Direct Tax Code
Confederation of Indian Industry Gujarat chapter organised an interactive session on the new Direct Tax Code to understand common issues from industry point of view for the stakeholders.
By PTI |
AHMEDABAD: Confederation of Indian Industry (CII) Gujarat chapter on organised an interactive session on the new Direct Tax Code (DTC) to understand common issues from industry point of view for the stakeholders.
Speaking on the topic 'Non-Resident International Taxation' Partner Tax and Regulatory Services of Ernst & Young India, Ajay Shah, highlighted implications of the new tax code on international taxation.
"Over and above the corporate tax foreign companies having operations in India will have to pay 15 per cent Branch Profit Tax (BPT), irrespective of the fact they are repatriating funds or not," Shah said referring to the provisions of new Direct Tax Code.
Another major shift in the code is approach towards tax avoidance, he added.
"The enactment of General Anti Avoidance Rules (GAAR) in the new code puts burden of proof on taxpayer to establish that availing tax benefits was not main purpose of the transaction," Shah said.
The power of invoking GAAR has been vested with the Commissioners, he added.
Another speaker, Dhinal Shah of Ernst and Young while speaking on Business and Corporate Taxation said "as per the provisions DTC all non-profit making organisations and all charitable trusts are now subject to tax payment of 15 per cent."
Speaking on the topic 'Non-Resident International Taxation' Partner Tax and Regulatory Services of Ernst & Young India, Ajay Shah, highlighted implications of the new tax code on international taxation.
"Over and above the corporate tax foreign companies having operations in India will have to pay 15 per cent Branch Profit Tax (BPT), irrespective of the fact they are repatriating funds or not," Shah said referring to the provisions of new Direct Tax Code.
Another major shift in the code is approach towards tax avoidance, he added.
"The enactment of General Anti Avoidance Rules (GAAR) in the new code puts burden of proof on taxpayer to establish that availing tax benefits was not main purpose of the transaction," Shah said.
The power of invoking GAAR has been vested with the Commissioners, he added.
Another speaker, Dhinal Shah of Ernst and Young while speaking on Business and Corporate Taxation said "as per the provisions DTC all non-profit making organisations and all charitable trusts are now subject to tax payment of 15 per cent."
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