The US Trade Representative has initiated an investigation into potential tariff and non-tariff barriers arising out of Equalisation Levy imposed by India that is purported to affect “US Exports”. Equalisation Levy (popularly dubbed “Google Tax”) is imposed by India on Advertising and eCommerce companies not having a Permanent Establishment in India and thus avoiding Income…More
Economics 101 : Without Land, Labour, Capital Reforms : How will India attract Manufacturing Cos relocating from China and elsewhere
I came across a Tweet by Seshadrichari ji who cites a Nomura report that out of 56 companies moving out of China, only 03 located to India with the maximum going out to South East Asia. He targets Politics, Bureaucracy, etc as causes. In my belief, its a more simplistic dimension. Economics Lesson 101 –…More
The Direct Tax Vivad Se Vishwas Act 2020 : Criminal Intimidation to settle case pending at a judicial forum by ITD Authorities to meet Revenue Targets : Illegality and Judicial recourse thereof.
Section 3 of the Direct Tax Vivad Se Vishwas Act, 2020 assumes jurisdiction “.. where a declarant files under the provisions of this Act on or before the last date, a declaration to the designated authority in accordance with the provisions of section 4 in respect of tax arrear, ..” . There is no provision…More
Carbon Tax on fossil fuel to fund oil saving infrastructure
Oil prices have fallen to record low levels and Indian government has raised taxes keeping pump prices artificially high. The Government should consider earmarking a portion of the carbon tax on fuel so collected on modern public transport infrastructure such as metro railways, suburban railways, electric bus rapid transit systems (eBRTS), and high-speed (350 km/hr)…More
Prohibit Charitable Trusts to Accumulate Incomes u/s 11(2) of I T Act 1961 or transfer surplus unspent incomes to PM CARES Fund
At present, Charitable Trusts registered with the Income Tax Department are allowed to accumulate a portion of unspent Incomes u/s 11(2) of the Income Tax Act, 1961 without payment of Income Tax. One measure to nudge Charitable Trusts to spend more of their Accumulated Income and Reserves to fight the CoViD19 pandemic would be to prohibit them…More
