Many countries have introduced digital services taxes that apply to only very large multinational groups, while other countries’ digital taxes apply to a much wider range of businesses. India’s equalisation levy has an extremely low revenue threshold and for the time being is likely to affect more multinational businesses than any other digital services tax.
India has introduced a new withholding tax regime for e-commerce transactions.
India has delayed the application of its new ‘significant economic presence’ (SEP) provisions until April 2021.
India will raise the turnover threshold for an annual tax audit. The increased limit will apply to businesses that carry out less than five percent of their transactions in cash.
India's tax authority has ruled that revenue generated from cloud hosting services by a U.S. company to Indian consumers is not taxable as 'royalties' under the India-U.S. tax treaty.
Companies hire local talent in India, Poland, Malaysia and other popular target countries to save money and create efficiencies. This posts describes three popular offshoring models, including shared service centres, technology hubs and joint ventures. It also addresses some compliance-related concerns that apply to all three options.
The Indian government has proposed a new tax on e-commerce transactions.
India has abolished its Dividend Distribution Tax regime.
India has reduced corporate tax rates for companies incorporated there.
India has instituted key reforms to ease the tax burden on start-ups and make it easier for investors to contribute to their success. These changes are part of a larger plan to create jobs and further elevate the country's rising economic stature.
India has introduced a new system for the submission of foreign liabilities and assets.
India’s Income Tax Department has issued revised guidelines for the ‘compounding of offences under direct tax laws, 2019.’