India and China Signs Protocol to 1995 DTAA on November 26, 2018

Republic of India and People's Republic of China signed a protocol amending the 1995 Double taxation agreement to avoid double taxation and fiscal evasion on November 26, 2018. The protocol includes amendments as per BEPS (Base Erosion and Profit Shifting) rules and the share related transaction information.

Read the Announcement here: https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/738/Press-Release-Protocol-amending-India-China-DTAA-26-11-2018.pdf

Read More

India - HongKong Signs Double Taxation Avoidance Agreement (DTAA)

March 20, 2018, India and HongKong signs DTA to prevent fiscal evasion of taxes.
It will also provide an added advantage of

Read More

India - Qatar - Double Taxation Agreement (DTA)

March 22, 2018 The Indian Cabinet approves revision to DTAA which was signed with Qatar.

The main contribution is to

Read More

India - Ireland - Double Taxation Agreement(DTA)

On 20 February, 2002, India signed the convention for Double Taxation with Ireland.

The convention applies to residents of both the countries.

It applies in the areas of:

Read More

FRINGE BENEFITS TAX in AUSTRALIA

All your doubts related to fringe benefits taxes in Australia are available on the Australian Taxation Office Website-

Read More

Austria - Japan - Ratify DTA and Protocol

April 5, 2018, The Austrian Parliament passed a bill ratifying a Double Taxation Agreement (DTA) and its Protocol with Japan. It was signed on January 30, 2017. The new DTA will replace 1961 DTA between the two countries.

#Double Taxation Agreement
#Tax
#Evasion

Read More

Belgium - Senegal - Ratify Air Transport Agreement

On March 27, 2018, The Belgian Parliament accepted and considered a bill to ratify the Air Transport Agreement with Senegal. The same was signed earlier on January 18, 2013.

#Treaties
#Corporate Taxes

Read More

THE ACCOUNTING STANDARDS

The council of THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA constituted the accounting standard broad (ASB) in April 1977.

While formulation of Accounting standards , full consideration was given to (IAS's) international accounting standards issued by (IFRS's) International financial reporting standards.

THE ACCOUNTING STANDARDS WITH THEIR DATE OF APPLICABILITY:
AS-1 DISCLOSURE OF ACCOUNTING POLICIES (APRIL 1,1993)
AS-2 VALUATION OF INVENTORIES (APRIL 1,1999)
AS-3 CASH FLOW STATEMENTS (APRIL 1,2001)
AS-4 CONTINGENCIES AND EVENT OCCURRING AFTER THE BALANCE SHEET DATE(APRIL 1,1998)
AS-5 NET PROFIT/LOSS FOR THE PERIOD, CHANGES IN ACCOUNTING POLICIES(APRIL 1,1996)
AS-6 DEPRECIATION ACCOUNTING (APRIL 1, 1995)
AS-7 CONSTRUCTION OF CONTRACTS ( APRIL 1, 2002)
AS-8 RESEARCH AND DEVELOPMENT (now included in AS-26)
AS-9 REVENUE PRECOGNITION (APRIL 1,1993)
AS-10 ACCOUNTING FOR FIXED ASSETS ( APRIL 1,1993)
AS-11 THE EFFECT OF CHANGE OF FOREIGN EXCHANGE RATES (APRIL 1,2004)
AS-12 ACCOUNTING FOR GOVERNMENT GRANTS (APRIL 1, 1994)
AS-13 ACCOUNTING FOR INVESTMENTS (APRIL 1, 1995)
AS-14 ACCOUNTING FOR AMALGAMATIONS ( APRIL 1, 1995)
AS-15 EMPLOYEE BENEFITS (APRIL 1, 2006)
AS-16 BORROWING COSTS (APRIL 1, 2000)
AS-17 SEGMENT REPORTING (APRIL 1, 2001)
AS-18 RELATED TO PARTY DISCLOSURES (APRIL 1, 2001)
AS-19 LEASES (APRIL 1, 2001)
AS-20 EARNING PER SHARE (APRIL 1, 2001)
AS-21 CONSOLIDATED FINANCIAL STATEMENTS (APRIL 1, 2001)
AS-22 ACCOUNTING FOR TAXES ON INCOME (APRIL 1, 2006)
AS-23 ACCOUNTING FOR INVESTMENT ASSOCIATED IN CONSOLIDATED FINANCIAL       STATEMENTS (APRIL 1, 2002)
AS-24 DISCONTINUING OPERATIONS (APRIL 1, 2004)
AS-25 INTERIM FINANCIAL STATEMENTS (APRIL 1, 2002)
AS-26 INTANGIBLE ASSETS (APRIL 1, 2003)
AS-27 FINANCIAL REPORTS IN JOINT VENTURES (APRIL 1, 2002)
AS-28 IMPAIRMENT OF ASSETS (APRIL 1, 2008)
AS-29 PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS (APRIL 1, 2004)
AS-30 FINANCIAL INSTRUMENTS; RECOGNITION AND MEASUREMENT (APRIL 1, 2011)
AS-31 FINANCIAL INSTRUMENT: PRESENTATION (APRIL 1, 2011)
AS-32 FINANCIAL INSTRUMENTS: DISCLOSURE (APRIL 1, 2011)

Read More

APPLICABILITY OF SERVICE TAX IN INDIA

Some major points on history of service tax:

1. service tax was introduced in India in the year 1994

2. it was introduced first time on 3 services which were:

          a. services rendered by telegraph authorities  in relation to telephone connection.

          b. services provided by insurer to the policy holder in relation to general insurance business.

          c. services by stockbrokers.

3.service tax was initially levied in India by the Constitution entry no. 97 of the union list.

4. it is applicable to the whole of India except the state of Jammu and Kashmir.

5. the provisions related to service tax are given in the chapter V and V(a) of the finance Act 1994.

6. it was introduced in India on the recommendation of  Dr. Raja j Challiah committee.

7. it is levied in India on the selective approach.

8. it is governed by CBEC- central board of excise and customs.

9. w.e.f 1.4.2012 the rate of service tax has been increased to 12.36% including education cess and senior higher education cess.

10. service tax is not payable if the aggregate value of taxable services does not exceed INR 10,00,000.

Read More

INCOME EXEMPT FROM INCOME TAX IN INDIA

following are the types of income which are exempt from income tax:
1. agricultural income
2. share income of hindu undivided family(HUF)
3. share of profit in partnership firm
4. gratuity
5. pension and leave salary
6. leave encashment
7. house and rent allowances
8. commuted pension
9. dividend income from domestic company
10. income from mutual funds
11. income from religious institutions.

the above stated points are such kinds of income which are exempt from income tax according to income tax  Act, 1961.

Read More