Corporate tax Update for the Month

Untitled94ANo action against black money declarants under FEMA: RBI

  • Oct 2, 2015
    With the compliance window for declaration of offshore assets ending on September 30, the RBI on Thursday clarified that no proceedings would be initiated under the Foreign Exchange Management Act, 1999 (FEMA) against declarants with assets held abroad on which taxes and penalties had been paid under the the Black Money Act. The RBI said no permission would be required under FEMA to dispose of the asset and bring back the proceeds to India through banking channels within 180 days from the date of declaration. In case the declarant wishes to hold the declared asset, she/he may apply to the apex bank within 180 days from the date of declaration if such permission is necessary. The RBI said it would deal with such applications under existing regulations.Source:

 A welcome retro tax move for a change

  • Oct 2, 2015
    The government on Thursday decided to give relief to foreign companies with no ‘place of doing business’ in India from the 18.5% minimum alternate tax demands issued to them, saying that amendments to the tax law to this effect would be brought in very soon. The relief will be available to companies irrespective of whether they are from a country with a tax treaty with India or not. The move could benefit companies such as the US-based Timken facing MAT demands.Source:
  • Rupee plunges to 66.16 vs dollar, down 17 paise
    Oct 2, 2015
    Hit by month-end dollar demand from importers, the rupee on Thursday dropped by another 17 paise against the American currency to close at 66.16, extending losses for fourth straight day, amid mixed global cues. Sustained foreign capital outflows also affected the market. Foreign portfolio investors sold shares worth a net Rs 1,330 crore on Wednesday, according to provisional data released by the stock exchanges. The rupee resumed sharply lower at 66.20 a dollar against its overnight level of 65.99 at the Interbank Foreign Exchange market. It hovered in a range of 66.27 to 66.03 during the day, before ending at 66.16 per dollar, showing a loss of 17 paise. The rupee has dropped by 49 paise or 0.75 per cent in four days. The dollar index was down by 0.40 per cent as against a basket of six currencies.Source:
  • BILT to sell Malaysia arm for $500 mn
    Oct 2, 2015
    Ballarpur Industries (BILT), an Avantha Group firm, has announced the sale of its Malaysian subsidiary, Sabah Forest Industries (SFI), to Pandawa Sakti (Sabah) Sdn, Malaysia, for $500 million (Rs 3,307 crore). The debt-heavy group had sold Crompton Greaves’ consumer durable business in April for Rs 2,000 crore and a power plant in Korba to Adani Group for Rs 4,200 crore in November 2014. A power plant in Jhabua, Madhya Pradesh, was also on the block and a deal in this regard was expected to be finalised by October, said a senior executive.Source:    

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