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Scope of task force on tax issues likely to be expanded
New Delhi, Aug 29: Centre is likely to expand the scope of task force looking to tax issues of non-residents by including in its terms of reference the issue of permanent establishments.
However, the tax issues of foreign telecasting entities has not been referred to the task force, official sources said here today.
The task force, which was formed on Kelkar Committee recommendations, had been mandated to look into categorisation of income -- business, royalty and fee -- for technical services, in view of industry differing on treatment to software.
On the issues of permanent establishments (PE), Director General of Income Tax (International Taxation) Vjiay Mathur hinted saying "internet and technological age throw the concept of permanent establishments haywire... Even in brick and mortar companies, the PE is a problem."
Addressing an interactive session, organised by the Indo-American Chamber of Commerce, he said the task force on emerging issues on non-resident taxation has been looking into various issues, including e-commerce, transfer pricing and the taxation of BPO companies.
Bureau Report