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BPOs to be taxed under new tax code: expert
Business Processing Outsourcing (BPO) centres in India would be subjected to taxation under the new proposed Direct Tax Code (DTC) but some clarifications, especially on double taxation, were still needed, an expert said. - Uncertainties in new tax code may hit fund inflows: Deloitte - Net transactions show 10% monthly growth - Rajesh Tandon: Taxing time for non-profit sector">Rajesh Tandon: Taxing time for non-profit sector - Uncertainties in new tax code may hit fund inflows: Deloitte - CV sales likely to rise in coming months - Direct tax code: Com Min bats for SEZ developers "The (tax) exception given to BPOs has to be withdrawn under section 10 (A) of Income Tax Act. There is no provision in DTC for any such extension of benefits," tax expert and International Fiscal Association of India Branch Chairman T P Oswal told PTI here. According to him, the BPOs can be taxed on the basis of the profit they make in India and also overall profit. "According to the Organisation for Economic Co-operation and Development (OECD), a France-based grouping of 30 developed nations, these BPOs can be taxed on the basis of the overall profit of the company. But according to a ruling of the Supreme Court it is not possible," he said. BPOs can approach the government under the Advanced Price Arrangement (APA) for a clarification about the taxation process, to avoid any incident of double taxation, Oswal said. "There is a new provision called Advanced Price Agreement (APA) included in DTC. The BPOs can approach the government and ask for a clarification," the tax expert said. "No amendments or circular will carry retrospective effect in this regard and the vested rights of the tax-payer will not be taken away. Their agreement under APA will be unchangeable for a maximum of five years," Oswal added.Online payday loans commented:
Well it has to be seen that what will be the reaction of the BPO industry on this amendment in the act they have to face its consequences so we have to wait about there reaction.
21.07.2011
Instant cash commented:
This amendment is good but what will be the reaction of the BPO industry that we have to see first
20.08.2011