Withholding tax news

Additional Income-tax on distributed income by company for buy-back of unlisted shares

20% Withholding Tax Rate on profits distributed by unlisted companies to shareholders through buy-back of shares Existing provisions of Section 2(22)(e) provide the definition of dividends for the purposes of the Income-tax Act. Section 115- O provides for levy of Dividend Distribution Tax(DDT) on the company at the time when company dist...

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Posted Under: Income Tax | ,

Vodafone pays over USD 400 mn more to buy Essar's 33 per cent stake

Ending year-long battle, UK-based Vodafone has agreed to pay USD 400 million more to its Indian partner Essar for buying its 33 percent stake in the joint venture Vodafone-Essar. With this, Essar closed the deal to sell its 33 percent stake at USD 5.46 billion as against USD 5 billion decided earlier. ...

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Posted Under: Income Tax |

After Vodafone verdict IT department will investigate more cross-border mergers involving Indian assets

The government will look into more cross-border mergers involving Indian assets, like the Vodafone-Hutchison deal, after the Bombay High Court on Wednesday rejected UK-based Vodafone's petition against the imposition of tax by authorities here....

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Posted Under: Income Tax |

Reminder : Person receiving income subject to withholding tax is required to obtain Permanent Account Number (PAN)

The Finance (No.2) Act of 2009 introduced section 206AA under the Income Tax Act, 1961 (the ITA) to provide that any person who is entitled to receive any sum or income or amount, on which tax is to be withheld under the ITA shall furnish PAN to the person responsible for withholding of tax. In case PAN is not furnished, minimum withholdi...

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Posted Under: Income Tax |

Replacement of dividend distribution tax with withholding tax to boost business

The cost of doing business in India could come down if the dividend distribution tax (DDT) levied on foreign shareholders is replaced with a withholding tax as under the current system, apex chamber Ficci has said. According to the chamber, foreign shareholders are unable to claim credit in the home country for DDT paid in India, resultin...

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Posted Under: Income Tax |

I-T department asks Sanofi Aventis to Pay 650 Crore withholding Tax over its Acquisition of Shantha Biotech last year

Close on the heels of Vodafone-Essar contesting a tax case in the Bombay High Court, tax sleuths have snared another multi-national company for tax evasion. This time, French pharma firm Sanofi Aventis, that acquired India’s Shantha Biotech last year, has been asked to pay Rs 650 crore as capital gains tax to the Indian government. ...

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Posted Under: Income Tax |

Vodafone was advised by Income Tax department to pay withholding tax before payment

THE Indian tax authorities had advised British telecom major Vodafone to pay tax on its $11-billion acquisition of Hutchison Essar before it sealed the transaction, according to a recent income tax order. In a letter on March 23, 2007, the Income Tax (I-T) department had asked Vodafone to pay withholding tax, nearly one-and-a-half month b...

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Posted Under: Income Tax |

Swiss bank not willing to share info and alternatively offered to tax their foreign clients'

Swiss banks have offered to tax the money deposited with them by Indians and other foreigners and "immediately deliver the cash" to governments of respective countries, rather than sharing the details of their clients. Switzerland has come under increasing global pressure to share information about black money stashed in its banks. Possi...

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Posted Under: Income Tax |

Tax Sword Looms Large On Cross-Border Acquisitions

Since August last year, the world has been watching. It all began with a show cause notice issued to Vodafone BV (based in the Netherlands), holding it to be an “assessee in default” for not withholding tax at source when it made payments to a Hutchison Group company (based in Cayman Islands) for acquiring shares of another Cayman Isl...

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Posted Under: Income Tax |

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