The document discusses updates to India's Tax Residence Certificate requirements and general anti-avoidance rules. It notes that the Finance Minister stated that a foreign government issued Tax Residence Certificate will be accepted as proof of residency for tax treaty benefits. However, additional information can still be requested by the Indian government. It emphasizes that investors' nervousness was put to rest and that the consultancy can assist with reviewing structures to ensure adequate substance to withstand any future changes to rules.

1. 31 May 2013
Intuit Management Consultancy
» India » Middle East » Africa
News Alert
Our Services
» Company Formation & Management
» Offshore Incorporations
» Trusts & Foundations
» Estate Planning
» Corporate Finance
» Accounting Services & Tax
Compliance
» Bank Account Services
» Trade and Treasury Services
» Fund Services
» Fund Formation & Administration
» International Tax Planning
» Virtual Offices
» HR Consulting Services
» Yacht Registration Services
» Aircraft Registration Services
» Trademark Registration
» Immigration Services
Connect with us
INDIA TAX RESIDENCE CERTIFICATE UPDATE
The Finance Minister P Chidambaram, after presenting the Finance Bill 2013, in the Indian
Parliament said that the Tax Residence Certificate (TRC) issued by the Foreign Government will
be accepted as proof of residency for availing benefits under tax treaties. He further stated that
"the additional information can also be asked by the Government but the TRC issued by the
foreign Government will be accepted as a certificate of residence." The Tax Residence Certificate
shall be necessary but not a sufficient condition for claiming any relief under the agreement
referred to therein. The stock market reacted negatively, which led to the Indian Ministry of
Finance issuing a press release, admitting that the language used in the drafting was not
appropriate and that it would be suitably addressed when the Finance Bill is taken up for
consideration.
This put to bed the nervousness of investors. It has to be reiterated that circular 789 dated April
13, 2000 issued by the Central Board of Direct Taxes remains valid, pending the on-going
renegotiations of the Double Taxation Avoidance Agreements between the two Governments
under the auspices of the Joint Working Group.
Intuit would also emphasise that proposed amendments for General Anti Avoidance Rules
(GAAR) is now enacted under Chapter X of the Indian Income Tax Act 1961 and will be effective
as from 1st April 2015. It is imperative that adequate substance be inserted in your Mauritius
structure so as to be able to withhold change, if any. If you need any assistance to review your
structure, please email us on bc@intuitconsultancy.com
For further details, we propose a conference call with our Partner, Mr. Piyush Bhandari at the
telephone number +9840702727 or with email address: piyush@intuitconsultancy.com
Intuit Research Team
Intuit Management Consultancy
India Tel: +91 9840708181 Fax: +91 44 42034149
Dubai Tel: +971 4 3518381 Fax: +971 4 3518385
Email: newsletter@intuitconsultancy.com
www.intuitconsultancy.com
If you wish to unsubscribe please email us
Disclaimer: The content of this news alert should not be constructed as legal opinion. This news alert provides general information at the time of preparation. This is intended as a news update and Intuit
neither assumes nor responsible for any loss. This is not a spam mail. You have received this, because you have either requested for it or may be in our Network Partner group.