The board said that the MLI will modify India’s tax treaties to curb revenue loss through treaty abuse and base erosion and profit shifting strategies by ensuring that profits are taxed where substantive economic activities generating the profits are carried out.
The annual report on APAs for FY18, just released by the Central Board of Direct Taxes (CBDT) says the 219 APAs resulted in MNCs accepting an extra income of Rs 10,000 crore, translating into a tax of Rs 3,000 crore.
The CBDT chief also directed that a compliance report on these cases should be sent to the board every three months and a publicity campaign should be undertaken so that taxpayers know that this mechanism can be used to get their grievance addressed.
In 2013-14, three individuals figured in Rs 100-crore group, paying Rs 547 crore in direct tax. The new data show that no individual paid tax of over Rs 500 crore in 2014-15 as against one (Rs 21,870 crore) the previous year.
The information was sought in the wake of an April 2013 investigation by The Indian Express-International Consortium of Investigative Journalists on investments by Indians in offshore entities in tax havens.
Revenue Secretary Hasmukh Adhia has sent a terse missive to the Central Board of Direct Taxes chairman Atulesh Jindal seeking an explanation for a likely shortfall in direct tax collections in 2015-16. This comes after the government had sharply lowered its direct tax target for 2015-16 by Rs 45,974 crore in the Union Budget last […]