Category Taxation in India

India’s Solar Industry Needs Clarity

August 6, 2018 Taxation in India

Solar power in IndiaNEW DELHI – The solar industry in India is crying out for clarity on what GST rate applies to them.

Last week the Solar Power Developers Association (SPDA) of India petitioned the government to clear up the current legislative ambiguity regarding the taxation of equipment used in the generation of solar energy.

Currently, there is a concessional GST rate of 5 percent applied to the sale of solar power generating systems in India.

However, the term solar power generating systems is not defined anywhere in the legislature of India, meaning that while the concessionary rate exists, there is no clear understanding on what it applies to.

Advocates for the solar industry claim that many projects and initiatives were launched and operated on the premise of a 5 percent rate of GST, and that an...

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India May Tax Crypto Incomes

May 25, 2018 Taxation in India

Crypto currencyNEW DELHI – Cryptocurrencies will soon be taxed in India, although the move could lead to greater acceptance and legitimacy of the technology in the country.

Media rumours swirling in India about new tax rules for cryptocurrency in India have led to a fall in the prices of most major coins.

Earlier this week, rumours rose up in the media about the possibility that the government of India will rule that cryptocurrency transactions should be taxed under GST regulations.

If the rules come into force, then the earnings arising from trades involving cryptocurrencies will all under the scope of the country’s 18 percent GST.

If the transactions take place in India, then it would be regarded as the transfer of software or some intangible good.

Conversely, if the transactions involve foreign par...

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India Comes After Bitcoin Investors

February 8, 2018 Taxation in India

bitcoin taxNEW DELHI – India’s government is taking steps to ensure that investors in Bitcoin and other cryptocurrency do not shirk their tax obligations.

In a news release issued on February 6th it was disclosed that the Direct Tax Department of India has sent out over 100 000 letters to national taxpayers who may have made an income from trading cryptocurrency without declaring it for the purpose of taxation.

It was stated that many taxpayers who have invested in cryptocurrencies do not know how to properly file their incomes on the coins, and that there may not be enough clarity regarding the tax treatment of the currency.

The government and tax departments of India are yet to issue any official guidelines on the tax treatment of such investments.

The government is establishing a committee which...

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Blackmoney Crackdown Boosts Taxes in India

May 4, 2017 Taxation in India

Indian RupeesNEW DELHI – By barring the use of selected bank notes, the government of India has managed to force millions of people to finally pay their taxes.

The efforts made this year by the government of India to drive down the use of black money and tax evasion have worked, with a large number of people now coming into the reach of the tax net.

Since the start of the crackdown on black money, the number of individuals who have filed tax returns has risen by approximately 9.5 million.

The tax net could even spread further, as the tax authorities are still on the lookout for taxpayers who are likely to have committed some tax evasion.

For the purposes of finding the tax evaders, the tax authority has compiled a list of 1...

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Inactive Shell Companies Getting the Boot in India

May 1, 2017 Taxation in India

Indian National FlagNEW DELHI – Dormant companies in India are being told to registered, as authorities believe they may be being used for money laundering.

Over the weekend the Ministry of Corporate Affairs of India sent out approximately 200 000 notices to companies which claim to be inoperative, instructing the entities to close down.

The notices come as a result of the recent moves by the government to demonetise selected bank notes, as they were thought to lead to money laundering and black market activity.

The companies which received notices have not filled annual returns for several years, indicating that they did not undertake any business activity.

However, during the demonetisation process it was evident that a number of “inactive” companies were actually participating in money laundering activ...

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