Edited excerpts:Finance bill 2018 has introduced the concept of significant economic presence to tax offshore firms offering digital services to Indian customers. Earlier, taxability of offshore firms was linked to their physical presence under the concept of permanent establishment (PE) (which is articulated in tax treaties). In this budget, we have said significant economic presence will also constitute a PE. On this basis of this provision in domestic law, we can negotiate tax treaties with other countries. What is the policy direction on personal income tax rate and the slabs that we can expect from the direct taxes code?

Source: Mint February 04, 2018 18:22 UTC