India imposes aggressive tax claims on transfer pricing of multinational firms

India has been aggressively imposing tax claims on the transactions carried out by multinational firms in the country in an effort to reign in the budget deficit experiences currently. Back office functions and IT have been particularly targeted by the government in this respect. Authorities are taking a microscopic view of transactions of minimum value […]

New tax reforms proposed in US to check outsourcing

February 27, 2012: In an effort to control outsourcing by US companies, the United States President Barack Obama has proposed to introduce tax on earnings made outside the country. This move is to discourage the large US companies from offshoring jobs to destinations such as India. The proposed reform will make it difficult for the […]

BUDGET 2008-09 : SPECIFIC IMPLICATIONS FOR THE IT /ITES/BPO SECTOR

HIGHLIGHTS OF THE BUDGET, AS PASSED BY THE PARLIAMENT, VIS-A-VIS INFORMATION TECHNOLOGY SECTOR The 100% tax exemption available to 100% Export Oriented Units operating under the Software Technology Parks Scheme, under Section 10B of the Income tax Act, 1961, has been extended till March 31, 2010, i.e. for the financial year ending March 31, 2010. […]

BUDGET 2007-08 : SPECIFIC IMPLICATIONS FOR THE IT /ITES/BPO SECTOR

SERVICE TAX ON LEASE RENTALS WILL IMPACT CASH FLOWS (AND NOT PROFITS) Rental /Lease costs to IT Companies will go up significantly, due to the proposed imposition of service tax on rentals related to immovable property for commercial or industrial purposes. The lease rentals will go up by 12.36%, from a date to be announced. […]