Goodbye Tax Deductions: Simplified IFSC Seller Transactions

Transforming Financial Services in IFSC

OVERVIEW

  • No Tax Deduction for Buyers: Buyer no longer need to deduct tax on payments to sellers in the International Financial Services Centres (IFSC).
  • Seller’s Declaration: Sellers must submit a declaration detailing previous tax deductions for the last ten years, verified as per government guidelines.
  • Buyer’s Responsibility: Upon receiving the declaration, buyers must report tax-free payments in their tax statements.

Key Seller Responsibilities

  • Submit Declaration: Provide a statement-cum-declaration in Form No. 1.
  • Detail Previous Deductions: Specify years for which tax deductions under section 80LA are claimed
  • Verify Declaration: Ensure the declaration is verified for each relevant assessment year.

Buyer’s Role & Benefits

  • No Tax Deduction: No tax is required on payments after receiving the seller’s declaration.
  • Report Payments: Buyers must include tax-free payments in their tax deduction statement.
  • Streamlined Transactions: Simplifies and encourages smoother business operations within the IFSC.

CONCLUSION

  • Simplified Compliance: The new rule reduces complexity in tax processes, making it easier for businesses to comply with regulations.
  • Fosters Growth in IFSC: The initiative is expected to drive increased activity and investment in the International Financial Services Centres (IFSC).
  • Boosts Business Confidence: With less administrative burden, businesses can focus more on growth and innovation within the IFSC ecosystem.

About Adi

  • We are a One-Stop solution offering a wide range of corporate business services to entities operating out of Gujarat International Finance Tech City (GIFT City IFSC) and across India.
  • Our customized solutions range from business set-up, accounting, audit support, tax advisory, legal advisory, secretarial, ROC compliance, SEZ compliance, IFSCA compliance support services and other business auxiliary services.
  • We are registered with IFSCA as an ancillary service provider at GIFT CITY-IFSCA.
  • We harness our market-leading expertise to help your vision become a thriving reality.

OUR VISION

To work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders-empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

OUR MISSION

To provide our client cost effective solution in time bound manner and offer them peace of mind by providing tailor made solutions as per their requirement.

We achieve this by standing out from the crowd and being innovative, proactive, and true to our core values while delivering the highest possible quality in everything we do.

 

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