Tax & Regulatory Services
Ernst & Young Tax Report
SEZ - Recommendations to CBEC on service tax refund issues.
In response to the industry’s long-standing demand of addressing difficulties faced by SEZ developers and units in seeking service tax refund, the Export Promotion Council (EPCES) organized a meeting for export-oriented units (EOUs) and SEZs on 17 September 2010 in Mumbai.
J. M. Kennedy, Director (TRU), was specially invited to solicit feedback from SEZ developers and units regarding the issues faced in the refund of service tax.
The CBEC representatives from SEZ developers, SEZ units, the Development Commissioner’s Office and field officers of CBEC dealing with refunds for SEZ developers/units attended this forum.
Ernst & Young, based on its experience and interactions with the industry representatives has compiled a report listing down the issues faced by the industry and suggested recommendations on the prevailing issues for the government’s consideration.
We are pleased to share our report on SEZ - Recommendations to CBEC on service tax refund issues (pdf, 116.3kb).
Ernst & Young Tax Report
Recommendations to Draft Point of Taxation (for Services Provided or Received in India) Rules, 2010
The Government of India had published a draft of the Point of Taxation (PoT) Rules, 2010 (for Services Provided or Received in India), to introduce the concept of time of supply for payment of service tax. The objective of the Rules is to shift the payment of service tax from a receipt or cash basis to an accrual or invoice basis.
The Board has displayed an encouraging and inclusive approach by inviting feedback from the stakeholders, which will ensure that the rules bring greater clarity, transparency and stability in the levy and collection of tax on services while introducing key legislative changes through the Draft Point of Taxation Rules, 2010.
Ernst & Young's Tax Policy & Litigation Group conducted a research exercise to develop a constructive point of view on the overall design and scheme of the rules. The research included an on-line survey of stakeholders, internal interviews with our teams on experience of the challenges faced by their clients, and a study of best practices across international GST/ VAT legislation's (specifically in Australia, New Zealand, United Kingdom, Canada and Singapore). The Group then identified concerns and submitted its recommendations on the Draft Rules to the Union Government.
We are please to share with you the complete research report on the draft Point of Taxation Rules (pdf, 3.9mb).
Revised Discussion Paper on the Direct Taxes Code
The Direct Taxes Code Bill, 2009 (DTC) was released by the Government of India (GOI) for public comments, along with a discussion paper, on 12 August 2009. Since then, a number of inputs on the proposals outlined in these documents have been received from a large number of organizations and individuals. These inputs have been examined and major issues on which various stakeholders have given their views have been identified.
The GOI, on 15 June 2010, released a Revised Discussion Paper (RDP) that addresses 11 major issues. This Tax Alert summarizes the issues discussed in the RDP.
Doing Business in India
The complex decision-making process involved in undertaking foreign operations in a country requires a deep knowledge of its commercial climate, along with the realization that this climate is constantly evolving. Ernst & Young’s annual publication Doing Business in India, 2009-10 provides an overview of the investment climate, taxation, types of companies and business and accounting practices in India.
TNS survey rates EY the most reputed tax advisor in India
A Global Survey of the Indian Tax Services Market by Taylor Nelson Sofres (TNS) has recognized Ernst & Young as the leading firm in India for tax advice, by reputation, with a strong lead over other firms. This independent Global Tax Monitor Survey polled CFOs and Tax Directors to compare all large Indian tax firms, including the Big Four firms, on various parameters of corporate image and reputation for services.