WITH the sword of Sec 94A hanging
over Switzerland, which may be declared as non-cooperative jurisdiction
by India, it is reported that the Swiss Government is planning to send
a delegation of its officials to discuss the issues of non-cooperation
and work out steps for greater cooperation in tax matters.
As
per the CBDT, India had made several requests for information relating
to some of the bank accounts held by Indians. Although India shared whatever
information it had got from third parties but the same was declared to
be inadequate by the Swiss Authorities and nothing concrete came from them.
As
per the Statement of the Finance Minister, India has now been mulling over
the option to notify Switzerland as non-cooperative jurisdiction. If that
happens all transactions with any Swiss entity will attract higher withholding
tax besides the expenditure incurred by the Indian entity to be disallowed.
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