Taxation of income in source country critical

By Staff
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Google Oneindia News

Hyderabad, Oct 05 (UNI) Vimta Labs Chairman and Managing Director S P Vasireddi said in the era of growing inbound and outbound investment, taxation of income in the source country and corresponding claim of tax credit in the residence country was a critical issue.

Inaugurating a seminar on 'Tax Credits, Service Tax and Transfer Pricing' organised by the sub-chapter of the Indian Branch of the Rotterdam-based International Fiscal Association (IFA) here today, he said such credits should be administered as per treaty provisions.

Non-compliance or improper availing could be significant for businesses might result in multiple taxation. It was in this context subject of tax credits against foreign source income was important.

Chairman of IFA Hyderabad Chapter P V S S Prasad said Transfer Pricing regulations in India was five years old and at a stage where it would be exposed to more complex practical situations.

He said the IFA Hyderabad sub-chapter had organised six seminars in the last two and half years and added that the sub-chapter today had about 45 members and the number was increasing.

On an all India basis, it had about 400 members, which included Central Board of Direct Taxes, National Institute of Public Finance and Policy and RBI, Authority for Advance Ruling, Department of Legal Affairs (Ministry of Law Justice and Company Affairs).

IFA India branch was planning to set up a National Tax Academy in Noida and it would be ready for business from middle of 2007.

UNI BR AA 2010

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