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MNCs in India fret as US yet to ratify global tax deal
Tax experts say the international tax treaty, which Republicans strongly oppose and requires a two-thirds majority in the US Senate to pass, faces significant challenges. Without US ratification, meeting the OECD tax deal's implementation conditions to reshape the global tax system becomes extremely difficult. The international tax treaty's implementation needs acceptance by 30 jurisdictions and the inclusion of the headquarters jurisdictions of at least 60% of the most profitable multinationals; given that many of these businesses are located in the United States, US participation is critical to attaining this level.
Taxpayers can amend sales return form before GST payment
GST taxpayers can now amend Form GSTR-1 with Form GSTR-1A before tax payment, ensuring accurate GSTR-3B filing. Partners like Abhishek Jain from KPMG appreciate the revision option, anticipating mechanisms like GSTR-2B for credit reconciliation. BDO India's Maulik Manakiwala highlights industry consultation, simplifying GST law and compliance, with exemptions for small taxpayers from GSTR-9/9A filings.
Tax parity for IFSC funds to help HNIs avoid US inheritance levy
Wealthy Indians can use GIFT City to avoid US inheritance tax on offshore investments. IFSCA is seeking tax parity for funds in GIFT City to attract HNI investors.
IT firms trim bench strength; GCCs focus on compliance
Happy Thursday! The country’s top IT firms have seen a massive drop in their bench strength, i.e. employees not on active projects. Find out why and more in today’s ETtech Morning Dispatch.
GCCs see regulatory compliance as key for India expansion: Survey
Global capability centres (GCCs) operating in India have made it a priority to understand local compliance norms amid an evolving regulatory and GenAI landscape, as per a Nasscom-KPMG survey report.
Big 4's dominance: Local companies call for level playing field
Indian auditing firms are pushing for fair competition with multinational counterparts, expressing concerns over the Big Four's increasing dominance and alleged manipulation of regulatory loopholes. The Institute of Chartered Accountants of India (ICAI) recently investigated affiliates of EY, Deloitte, PwC, and KPMG, where the firms were able to obtain court stays against disciplinary actions by the ICAI disciplinary committee after years of scrutiny, according to local rivals.
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Record GST mop-up reflects robust eco, audit efficacy; raises hope for further reforms: Experts
Tax experts hailed the record-breaking GST collection of Rs 2.10 lakh crore in April, attributing it to a robust economy and effective audit and scrutiny by the tax department. They anticipate this achievement to pave the way for further tax reforms after the formation of the new government. The surge in collection is seen as a result of higher self-compliance, better enforcement measures, and increased consumer spending on items like air conditioners and beverages to combat the summer heat.
April GST numbers are here and they're off the charts
India's economy is estimated to have grown 7.6% in FY24. The IMF expects India's GDP to expand 6.8% in FY25, retaining its status as the world's fastest-growing major economy. Total GST collection was ₹1.78 lakh crore in March while the monthly average for FY24 was ₹1.68 lakh crore.
KPMG opens innovation centre in Bengaluru, second after Mumbai
The first one was opened in Mumbai in 2022 where the company has demonstrated accelerators built with partners, hyperscalers and original equipment manufacturers like Oracle, Microsoft, Google, Salesforce, ServiceNow, Adobe, OutSystems and startups.
Top auditors stop offering non-audit work to clients
Top audit firms in India, including KPMG affiliate BSR & Affiliates and BDO affiliate MSKA & Associates, have stopped offering non-audit services to audit clients. This move aligns with the NFRA's strict stance on conflict-of-interest issues. EY affiliate SR Batliboi & Co is the only top firm still providing such services. This change comes amid global pressure for auditors to maintain independence and avoid conflicts of interest. The NFRA's regulations apply to Indian companies meeting certain thresholds.
Budget 2024: Biggest winners and losers in Modi govt’s last budget before polls
In the interim budget presented by Union Finance Minister Nirmala Sitharaman, the government aimed to appeal to key voter groups like farmers and the poor while maintaining fiscal prudence. Winners included the agriculture sector, middle class with increased tax threshold limits, and the tourism industry.
GST collections surge to ₹1.72 lakh crore in January 2024, marking a 10.4% Y-o-Y growth
GST Collections: India's Goods and Services Tax (GST) revenue has witnessed a notable upswing, reaching ₹1.72 lakh crore in January 2024, marking a significant 10.4% Year-on-Year (Y-o-Y) growth. This accomplishment represents the second-highest monthly collection ever recorded and the third instance in the fiscal year 2023-24 where collections surpassed ₹1.70 lakh crore. The cumulative gross GST collection for the ten-month period from April 2023 to January 2024 demonstrates a robust 11.6% Y-o-Y growth, totaling ₹16.69 lakh crore.
Budget 2024: A perspective on direct tax to ponder
The government may make procedural amendments in the interim budget to bring clarity to the International Financial Services Centre (IFSC) and extend deadlines for tax concessions. Other expectations include changes to personal taxation, enhancements to standard deductions, and clarifications on assessment timelines and the use of Document Identification Numbers (DIN) on orders.
Budget 2024: How extending concessional corporate tax rate can boost India’s manufacturing ecosystem
Budget 2024: India's manufacturing sector has been a key driver of the economy. The government introduced section 115BAB in the Income-tax Act, offering a reduced tax rate of 15% to newly established domestic manufacturing companies. The sunset date for this incentive has been extended to March 2024, but industry players are calling for a further extension.
GST collections for November at 1.68 lakh cr, up 15% YoY
Of the total collections, central GST (CGST) is Rs 30,420 crore, state GST (SGST) is Rs 38,226 crore, Integrated GST (IGST) is Rs 87,009 crore, including Rs 39,198 crore collected on import of goods. During the month, the revenues from domestic transactions (including import of services) are 20% higher than the revenues from these sources during the same month last year.
Take FPI custody services out of GST: Lenders to government
The issue cropped up during the GST audit of some foreign banks and lenders expect tax demands notices since 2017 when the new indirect tax was rolled out in due course. Assets under custody (AUC) stood at ₹48.7 lakh crore in March 2023, declining from ₹50.94 lakh crore in March 2022, shows data.
KPMG expands operations in Kolkata: Officials
The new office, equipped with state-of-the-art facilities and collaboration spaces, will accommodate a growing team of professionals, a statement said. KPMG currently has over 250 professionals in Kolkata and has ambitious plans to double its workforce by FY'25, it added
Razorpay’s ‘reverse flip’ to India may entail $300 million tax payment in US
Razorpay will seek clearance from the National Company Law Tribunal (NCLT) in the next two months to merge its American holding company with its India unit. It would then also officially appoint an auditor for the valuation discussions.
KPMG India, US, and UK in talks for landmark advisory practices merger
Termed "Project Himalaya" within KPMG, this endeavour has been quietly underway for several months and is spearheaded by KPMG India's CEO, Yezdi Nagporewalla, along with select partners. The new entity, when formed, is expected to soon grow to 50,000 people in its fold, and combined revenue just from India platforms would be more than $1 billion.
Big 4 get bigger: Combined revenues of EY, KPMG, Deloitte and PwC cross Rs 32,700 crore
For these firms, auditing services now account for less than 15% of total revenue from a disproportionate majority only a decade and a half ago, with EY, Deloitte and PwC not actively trying to expand this service line due to associated risks. Another traditional service, taxation advisory, has been a steady money spinner for the firms.
AAR ruling could offer advantages to e-commerce platforms facilitating logistic
The GST Authority for Advance Rulings (AAR) in Karnataka has ruled that Juspay Technologies, the company behind the ride-hailing app 'Namma Yatri,' is considered an e-commerce operator under GST regulations. However, the AAR clarified that Juspay Technologies is not required to collect and remit GST on transportation fares, as the supply of passenger transportation does not occur "through" their platform.
Big 4 raid each other's pools as talent war rages amid unprecedented growth
The Big Four accounting firms - EY, PwC, Deloitte, and KPMG - are engaged in a talent war as they seek to strengthen their advisory practices and fill gaps in their service portfolios. Deloitte recently hired 150 members, including 15 partners, from KPMG, prompting KPMG to actively court Deloitte partners and their teams. PwC is also said to be poaching eight partners from KPMG, along with over 150 executives. The demand for talent has intensified as the Big Four firms have reported significant growth, fueled primarily by advisory sectors such as consulting and transactions.
Auditors’ foremost obligation is to uphold public interest: Larry Bradley, KPMG
In order to serve the most complex and sophisticated organisations globally, generating critical mass and capabilities across the entire world is essential. Focusing on building these capabilities is crucial to ensuring top-notch services, says Larry Bradley, Global Head of Audit for KPMG International.
ED searches Mumbai offices of Deloitte India, KPMG unit
The ED searched the Mumbai offices of Deloitte Haskins & Sells (DHS), the Indian arm of Deloitte, and KPMG associate firm BSR & Co. DHS had rotated out as IFIN's auditor in fiscal 2018,while BSR resigned from the role in June 2019 after allegations of irregularities at the non-bank finance company came to light.
No service tax on corporate guarantees by parent companies to its subsidiaries: Supreme Court
"No effort was made on behalf of the revenue to assail the...finding or to demonstrate that issuance of corporate guarantees to group companies without consideration would be a taxable service," the top court observed while upholding a ruling by the principal commissioner of goods and services tax (GST). "In these circumstances, in view of such conclusive findings in both forums, we see no reason to admit this case," the court said.
Better tax dispute system & policy a boost for foreign investment in India: David Linke, KPMG International
In an interview with Vinod Mahanta, Linke talks about the evolution of Indian tax regulation, global tax regulations and the changing nature of the tax advisory profession. Edited excerpts:
Global companies and investors like India’s consistency in tax policy in recent years: David Linke, KPMG International
I believe that the GST has been a success. The recent budget has reported a significant increase in the number of taxpayers registering for GST. Before the GST, there were various sales taxes and other taxes, which were economically inefficient. Therefore, in terms of efficient taxes, the GST is incredibly efficient.
New tax regime may impact charity donations owing to higher exemption limit
Based on the government’s expectations, nearly two-thirds of taxpayers are expected to opt for the new tax regime, which has now become the default option. The increased rebate limit could discourage people from making charitable donations, said organisations working closely with NGOs.
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