Alibaba is an ecommerce company in China, which provides sales service, payment service, data centric and shopping search engine cloud service through web portals. Alipay is an online payment service by Alibaba, and it joined with Uber to expand its services in and around China. The alliance with Uber enabled the Alipay customers to pay their fare even when they travel outside China, because of the cross border service. Officials closer to the alliance said that they would expand their venture in Macau, Hong Kong and Taiwan. They also said that by the end of this year they will cover many other regions to provide service.
The alliance between Alipay and Uber is advantageous for both the firms. In case of Alipay, it will become the liable online application among the users that can compete against the Samsung Pay, Apple Pay or Android Wallet. This popularization of the application can initiate the firm to set up an international market. Since Alibaba is efficient in the mobile OS and cloud, media, payment and ecommerce industry it stands out to be the best investment. Apart from China Uber becomes popular among the Chinese people who travel overseas where it is the leading car-hailing application. Rather you can go ahead with private limited registration http://uptra.in/private-limited-company-registration-services/
According to a report, one hundred and fifty million Chinese have spent on cosmetics, foods, vitamins and luxury goods in the global market. The similarities among these people is that they are all aware of the Didi Kuaidi, the Chinese transportation network company, they are tech savvy and the use Alipay online payment service for all the transactions they have made. Thus, the partnership of Uber with Alipay is an efficient way to operate business overseas. And apart from Asia, in countries like US, Australia and Canada were Chinese population is more can facilitate the growth of Uber service.
For example, if a person does not have any outstanding liability in the financial year 2015 but forgot to file his tax return before the end of the year. He can file the form within two years from that particular financial year. Thus the taxpayer can file the return before the end of the financial year 2017. But in some cases, the taxpayer has to pay fine of Rs.5000 if they fail to file before one year. And if a person has outstanding liabilities, the taxpayers have to pay one percent as simple interest per month on the outstanding amount from the end of the financial year to the date at which the taxpayer filed the return.
Sending a strong message to the art world tax evaders New York Attorney General Eric Schniederman announced a $7 million tax settlement with over art collector and real estate developer. The amount accounts for 8.875 percent of New York tax bill on art sales. New York state department and Ag’s office have been proactive in taking out Tax abusers in art world. In Rosen’s case according to AG, the art collector under the name of 22nd century acquisitions and Lever House Art works companies he acquired more than 200 art works and claimed tax exemption on the basis that he would resell the art work. However he didn’t sell them and used it for personal decorations and real estate promotion. His residence at Hamptons located in the billionaire lane consist of some of these artworks.
The AG stated that the some of the art works were brought in New York while others were purchased in London. Only a few of these purchases had resale certificates and others did not have. When the buyer intends to use the art work he/she has to pay use tax however small the wrt work maybe. Several famous art works were part of his collection of which the costliest was Jean Michel Basquait’s Warrior at purchased at a price of $9.1 million. The lowest price purchase was Andy Warhol’s Howdy Doody at a price of $865,500.
The Finance Minister Arun Jaitley in the new Financial budget reintroduced the tax on gold jewelry after a long gap.
India is the second largest consumer of gold metal in the world. And there was no sales tax imposed on the purchase of gold. But importing thousand tonnes of gold, which accounts the decrease in India’s trade lead the government to introduce a plan to deploy more than twenty thousand tonnes of gold that are in the temples and houses. The officials from the Ministry of Finance department on February 26th said that the sales of gold in India were under the tax. The Finance minister in the new financial budget proposed the imposition of excise tax up to one percent on the purchase of diamond and gold jewelry. Earlier in 2012 the government had to decline the excise duty on gold jewelry due to the strike by the jewelers association. The head of Gem and Jewelry Export promotion council, Praveenshankar Pandya said the members of the council will meet the officials of the Finance department and discuss about the remove the taxation.
Spokesperson of India Bullion Jewelers Association, Ketan Shroff said that the excise taxes on the jewelry will slow down the market and decrease the demand. And more than ten million jewelry artists in the market will lose their job. He said that these restrictions may increase the illegal trade of gold jewelry. And it is hard for them to follow the norms of the tax, and they have to meet different government authority for each tax. The market dropped in India as there was a delay in the purchase of the gold because the customers were expecting a decrease in the import duty. As a result the importers had to sell the goods for low cost to empty the inventory. But the Finance Minister increased 8.75% of concession duty on gold bars instead of maintaining the tax
Ecommerce entities are growing in the market, attracting customers to perform their transactions online.
The tremendous increase in the ecommerce industry solved the taxation issue faced by the Indian government. The transactions in ecommerce are up to date and it enables to keep track of the issues faced by taxation. And it also helps to the government to follow the account of taxes paid by the vehicle service providers. The previous taxi service providers avoided the payment of both the service tax and the income tax because of the fake transaction report submitted by them.
Because of the ecommerce industry tax evasions are becoming lesser and the disputes in tax can be sort effectively, thus increasing the inflow of cash in both the state government and the central government. It will also facilitate the FII (Foreign Institutional investment) and FDI (Foreign direct investment) by attracting foreign investment. Global Ecommerce Company is targeting to venture into India, and it has already invested in Snapdeal and Paytm.
The traditional providers in different sectors like tourism, grocery stores, restaurants, hotels, taxi services, etc failed to maintain transparency because of the lack of attaining the industrial status. And it also leads to manipulation of the income. But the startups like the Food panda, Peepertap, big basket and Swiggy operate the business by focusing on food products and taxed according to the norms
Thus the ecommerce marketing is an advantage for the customers because of more companies participating in online business and it enables reduced pricing, offers and discounts on products to sustain in the industry. It in turn reduced the black money transaction in the industry.
The Indian government has introduced an electronic platform to eradicate duplicate PANs. The tax business application-permanent account number (ITBA-PAN) will be used by the PAN issuing authorities to identify duplicate numbers whenever a new application is received. The new system will also indentify duplicate allotted to an existing holder and stop them from using it. Until now manual checking was done to identify duplicate number. Manual checking is not sufficient enough to weed out duplicate number from a huge database of PAN holders. However, manual checking has to be done for old PAN holders. Duplicate PAN is misused to evade legal tax that has to be paid by a citizen.
In the past investigation of black money cases by the tax department has revealed that majority of the individuals use duplicate PAN for tax skimming. This new smart platform will indentify duplicate PAN and intimates the taxmen regarding the issue, who will notify the applicant. On notification if the applicant does not surrender the duplicate PAN the system automatically kills the duplicate account number. This initiative by the government is to bring in more citizens into the taxpaying net. At present only 3 percent of the 1 billion populations pay taxes.The finance ministry in the past has taken steps to integrate the requirement of PAN in high-value transactions. This inclusion is done to bring transparency in transactions and curb black money. Currently there are 24.37 crore PAN holders in India and there are no clear numbers as to how many of them would be duplicate ones.
Indian government has taken numerous steps to encourage the start-up culture in India. The finance budget for the year 2015-16 has announced tax exemption for start-ups for the first three years. The government has launched an online portal and mobile application for start-ups. The portal and mobile application were launched at the start-up India event in January 2016. The portal will provide instructions regarding Intellectual property rights (IPR) registrations and patent submission procedure. Information regarding the latest schemes and notifications announced by government, funding agencies and incubators will also be available through the portal. After the start-ups finish application process on the portal, the company will be provided with real-time recognition certificate.
It contains guidelines on how to use IPR competitively. The portal and application were launched during the start-up India initiative inaugurated by honorable Prime Minister Narendra Modi at Vigyan Bhavan on janiary 16, 2016. The portal and application is organized and maintained by department of Industrial policy and promotion (DIPP). DIPP co-ordinates inter ministerial board to check the eligibility of start-ups availing tax and intellectual property rights benefits. Secretary of DIPP Ramesh Abishek has ensured that the verification process for start-ups will be carried out in a swift manner. The government has allocated 2,500 crore in finance budget of the year 2015-16 to fund budding entrepreneurs. Despite so many measures DIPP expressed its concerns over low patent registration and expects more individuals to come forward. DIPP has weekly meetings to analyze the situations and requirements of start-ups in India
Income tax department conducted tax raids at 15 places (showrooms, godowns and manufacturing plant) on international shoe exporter “Virola International” and its associates. IT officials conducted raids on its associates too.
Officials suspect that the company has evaded tax and filed a report half-way through the raids. The officials have restrained from giving any details regarding the raids. However the company surrendered 16 crore after a three-day survey by the IT department. The company is an international shoe manufacturer with a huge market in Europe and Asia apart from the domestic market. Their notable products include Alberto Torresi, Otra Cosa and private edition footwear.
The assistant income tax commissioner Rajesh Gupta has stated that the company declares less income on paper but whereas the company has a turnover of 200 crore. This incident led to disgruntle among the footwear industry of Agra. The industry accused Income tax department for continuously harassing them in the name of surveys and raids. They are joined by National chambers of commerce, factory owners association and Agra Vyapar Mandal. According to the available income data there has been a 10 percent fall in the revenue in the year 2015 compared to 2014 due to global slowdown. The associations met to discuss about the repeated and disproportionate financial enquiries. The associations feel that IT department is trying to squeeze money out of already high tax paying industries.
A delegation formed from these meetings will meet the unuion fiancé minister Arun Jaitley.
The start-ups in India focus on foreign investors to provide fund, because the Indian government impose tax on the Indian investors who provide funds.The government officials said that according to the Union Budget the government is planning to reduce certain amount of taxation from the Indian investors who provide fund to the startups. They said that ninety percent of the startups receive funds through the investors outside the country because of the tax imposed on the domestic investors.The tax provision guides the angel investors to proceed as investee entity’s income, thus around thirty percent of the income invested on the startup is on taxation. An angel investor is an investor who supports budding entrepreneurs or small individual entities. The investment by the angel investors can be a continuous support or one-time investment.
R Chandrasekhar, the President of Nasscom said that India is the only country that imposes tax on its own investors than the global investors. Because of this the local investors face double taxation issue were they would have already paid tax for the investment they made and the government impose tax again for the amount they receive from their investment. And the main issue is that they impose tax not at the time of booking, but during the investment. This led the startups to locate to foreign countries to continue their business. Industrial leaders said that the government’s aim at uplifting the startups is a good action, but the government should understand the fact that the startups can operate from any part of the world even when the business and the employees are from India. And they asked why the taxes and the values of a startup benefit a foreign country.
Bhaskar Das have been working in the United States for about ten months; he receives his salary in dollars for which he pays his taxes. He received two lakh from his company in India as performance bonus. He said that this bonus reflected the income tax, which stated that apart from his professional tax no other taxes were deducted. Das wants to know whether he has to pay tax in India. The expert said that if the income received in India is less than two lakh fifty thousand then the individual is exempt from paying tax. And since the bonus amount Das received is less than the basic limit, the employer did not deduct any tax. But if he is a non-resident and the threshold income inclusive of the performance bonus is more than two lakh and fifty thousand, then he is liable to pay tax.
Arindham Chatterjee is living in the United Kingdom, he inherited a house from his parents and would like to sell the house and take the money back to the United Kingdom. He wants to know about the taxes he has to pay in India.The experts said that selling of an immovable property implies to capital gains tax in India. And if the previous owner sold the property after 3 years from purchase date, then the long term capital tax is payable at twenty percent. They calculate the long term capital tax as the difference between the indexed cost of purchase and the sales value. Hence the cost of purchase is the cost at which his parents bought the property, because it is an inherited property. And if Arindham re-invest the income received from the property in India, the tax is exempt for the capital gain.