Thursday , July 3, 2025 |   07:34:12 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
TP - Amount of receivable from AE and non-AE does not decide credit period given to AE, and question of imputing interest arises only when assessee provides extra credit period to AE: ITAT (See Breaking News) TP - Once foreign travel expenses are included in cost base & recovered from AE with markup, they form part of operating expenses under APA: ITAT (See Breaking News) TP - Absence of segmental data for various streams of revenue calls for exclusion of comparable, if entity was having revenue from multiple service lines: ITAT (See Breaking News) TP - While drawing segmental details, TPO ought to consider revenue of segments and cost that was allocated to respective segments: ITAT (See Breaking News) I-T - DRP proceedings did not contain valid DIN and assessment order also does not contain DIN, then assessment order would be invalid: HC (See Breaking News) I-T- Once assessee had disputed stamp duty valuation & provides credible material including earlier departmental valuation, then AO is obligated under the third proviso to Section 56(2)(x) r/w Section 50C(2) to refer the matter to Valuation Officer: ITAT (See Breaking News) I-T - Consideration for Health Ecotox services did not qualify as FTS under India-Netherlands Tax Treaty, if ‘make available' clause is not satisfied: ITAT (See Breaking News) TP - Functional dissimilarities and impact of extraordinary events like amalgamations, calls for rejection of comparables for purposes of benchmarking: ITAT (See Breaking News) TP - Benchmarking of operating results from international transactions of rendering software development and related services to AEs as well as non-AEs by applying TNMM, can't be disregarded on account of lack of segmental reporting: ITAT (See Breaking News) DTAA - Fabrication charges for bushings were not taxable as FTS under Article 12(4)(a) of India-Singapore DTAA where no technical knowledge or expertise is made available or transferred: ITAT (See Breaking News) OECD to release Tax Inspectors Without Borders' 10-yr Report CBDT notifies Protocol amending India-Oman DTAA TP - Cognizance taken by AO u/s 92CA is invalid, if it has been omitted from statute itself: ITAT (See Breaking News) TP - Internal TNMM is more superior than external TNMM, more so when audited segmental are available: ITAT (See Breaking News) TP - Interest payable on NCDs whivh are denominated in Indian currency is to be benchmarked by applying PLR as against LIBOR: ITAT (See Breaking News)
 
TII SEARCH
 
 
   
Home >> News Brief
 

IMF urges Centre to refrain from more tax sops
By TII News Service
Dec 27, 2019 , Washington DC

    

The Indian Budget for FY 2020-21 might well offer notional tax lollipops if Finance Ministers pays heed to International Monetary Fund (IMF’s) latest recommendations. The IMF Staff Report on India dated December 23, 2019 stated that fiscal stimulus should be avoided given fiscal space at risk and revenue losses from the recent corporate income tax rate cut should be offset. Another key recommendation for the near-term is that Reserve Bank of India should maintain an easing bias in monetary policy at least until the projected recovery took hold.

It adds that in the event of external pressures, India should continue to rely on exchange rate flexibility. Foreign exchange intervention should be two-way and limited to disorderly market conditions. As for medium-term recommendations, the report states that credible fiscal consolidation path is needed to reduce debt, free up financial resources for private investment, and reduce the interest bill. To support the adoption of a necessary medium-term fiscal consolidation, driven by subsidy-spending rationalization and tax-base enhancing measures, revenue projections should be more realistic and fiscal transparency and budget coverage should be enhanced.

The report also stated that Governance of public sector banks and the efficiency of their credit allocation needs strengthening, and the public sector’s role in the financial system needs to be reduced. Labor, land, and product market reforms aimed at enhancing competition and governance, along with infrastructure investment, should be priorities to create more and better jobs for India’s rapidly-growing labor force and enhance female labor force participation.

As for risk assessment, SR notes that Risks to India’s economic outlook are tilted to the downside. The two major domestic risks are tax revenue shortfalls and delays in structural reforms. It believes that credit growth could also remain subdued, as there is a perception of increased risk aversion among banks and implementation of the recently announced Public Sector Banks’ consolidation could divert focus and weigh on near-term credit growth. The main external risks identified by SR are: higher oil prices, a sharp rise in risk premia in global financial markets, and rising protectionism globally.

 
 
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI TII
  • DTAA
  • Circulars (I-T Act, 1922)
  • Limited Treaties
  • Other Treaties
  • TIEAs
  • Notifications
  • Circulars
  • Relevant Sections of I-T Rules,1962
  • Instructions
  • Administrative Orders
  • DRP Panel
  • I-T Act, 1961
  • MLI
  • Relevant Portion of I-T Act,1922
  • GAAR
  • MAP
  • OECD Conventions
  • Draft Guidelines
  • DTC Bill
  • Committee Reports
  • FATCA
  • Intl-Taxation
  • Finance Acts
  • Manual on EoI
  • UN Model Taxation
  • Miscellaneous
  • Cost Inflation Index
  • Union Budget
  • Information Security Guidelines
  • APA Annual Report
  • APA Rules
  • Miscellaneous
  • Relevant Sections of Act
  • Instructions
  • Circulars
  • Notifications
  • Draft Notifications
  • Forms
  • TP Rules
  • APA FAQ
  • UN Manual on TP
  • Safe Harbour Rules
  • US Transfer Pricing
  • FEMA Act
  • Exchange Manual
  • Fema Notifications
  • Master Circulars
  • Press Notes
  • Rules
  • FDI Circulars
  • RBI Circulars
  • Reports
  • FDI Approved
  • RBI Other Notifications
  • FIPB Review
  • FEO Act
  • INTELLECTUAL PROPERTY
  • CBR Act
  • NBFC Report
  • Black Money Act
  • PMLA Instruction
  • PMLA Bill
  • FM Budget Speeches
  • Multimodal Transportation
  • Vienna Convention
  • EXIM Bank LoC
  • Manufacturing Policy
  • FTDR Act, 1992
  • White Paper on Black Money
  • Posting Policy
  • PMLA Cases
  • Transfer of Property
  • MCA Circular
  • Limitation Act
  • Type of Visa
  • SSAs
  • EPFO
  • Acts
  • FAQs
  • Rules
  • Guidelines
  • Tourist Visa
  • Notifications
  • Arbitration
  • Model Text
  • Agreements
  • Relevant Portion of I-T Act
  • I-T Rules, 1962
  • Circulars
  • MISC
  • Notification
  • About Us
  • Contact Us
  •  
     
    A Taxindiaonline Website. Copyright © 2010-2025 | Privacy Policy | Taxindiainternational.com Pvt. Ltd. OPC All rights reserved.