CA Sansaar
CBDT's circular to offer clarity on indirect tax transfers under M&As
PrintIn a major boost to foreign investors’ sentiment, the Central Board of Direct Taxes (CBDT) is likely to come out with a circular to bring more clarity on indirect tax transfers under a particular merger or acquisition.
The CBDT’s circular will be on Section 9 of the Income Tax Act. Moreover, deals like Cadbury-Kraft and others might just be out of the tax department’s ambit, given the scope of the circular. However, there may be no tax respite for Vodafone.
Taxing M&As:
CBDT likely to issue a circular on Section 9
Circular to clarify definition of underlying assets
50% underlying assets in India for India to tax the deal
Cadbury-Kraft deal could be out of tax ambit post circular
No tax respite for Vodafone
Most M&A deals outside tax ambit as per new norms
Circular to delete unintended tax impact on M&As
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