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Mar 06, 2013
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Markets gain after FinMin clarification on TRC
Benchmark indices have closed marginally positive amid volatility after the Finance Ministry today issued clarification on Tax Residency Certificate (TRC).The 30-share Sensex ended at 18,919 up 57 points or 0.30% and the 50-share Nifty ended at 5,720 up by 27 points or 0.47%. The Sensex and the Nifty reached an intra-day high of 18,989 levels and 5,739 mark, respectively.The Government in a release today said that, in the explanatory memorandum to the Finance Act, 2012, it was stated that the Tax Residency Certificate containing prescribed particulars is a necessary but not sufficient condition for availing benefits of the DTAA (Double Taxation Avoidance Agreements).However, it has been pointed out that the language of the proposed sub-section (5) of section 90 could mean that the Tax Residency Certificate produced by a resident of a contracting state could be questioned by the Income Tax Authorities in India.
Source -
http://www.business-standard.com
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