Share with your friends

India: VAT on telecom towers, taxation of services outside India

India: VAT on telecom towers

The KPMG member firm in India has prepared reports about the following tax developments (read more at the hyperlinks provided below).


Related content

  • Central VAT credit allowed on telecom towers, shelter, accessories: The High Court of Delhi held that denial of a central value added tax (CENVAT) credit on the premise where telecom towers were erected (that resulted in immovable property) was erroneous. Read a November 2018 report [PDF 710 KB]
  • Withholding tax on shares under employee stock option: The Hyderabad Bench of the Income-tax Appellate Tribunal held that an obligation for withholding tax at source was triggered only when the shares were allotted, and not on the date of exercise. Read a November 2018 report [PDF 724 KB] 
  • Value of goods supplied: The Authority for Advance Ruling, Karnataka held that the amortised cost of tools that were supplied “free of cost” must be added to the value of the components for determining the value of the supply.  The case is: Nash Industires (I) Pvt. Ltd. Read a November 2018 report [PDF 530 KB]
  • Liquidation of shares under employee stock option taxed as capital gains: The Chennai Bench of the Income-tax Appellate Tribunal held that gains arising from the sale of shares sold by a parent company on behalf of the taxpayer would be treated as capital gains, determined by considering the value of shares at allotment as the cost of acquisition. Further, when such shares were allotted to the taxpayer during years in which the taxpayer was a non-resident of India, perquisite taxation did not arise. The case is: Dr. Muthian Sivathanu. Read a November 2018 report [PDF 709 KB]
  • Salary received in India by non-resident for services outside India not taxable: The Bangalore Bench of the Income-tax Appellate Tribunal held that the salary received in India by a non-resident individual taxpayer for services rendered in the United States was not taxable in India under the Income-tax Act, 1961, despite the taxpayer's failure to furnish a tax residency certificate, as all evidence relating to the taxpayer’s stay and subject to taxation in the United States. Read a November 2018 report [PDF 728 KB]
  • Fees for technical services not taxable, income from source outside India: The Gujarat High Court addressed the taxability of fees for technical services vis-à-vis exclusion provided under section 9(1)(vii)(b) of the Income-tax Act, 1961. The court held that the fees for technical services were paid by the taxpayer into a foreign company for the purpose of making or earning income from a source outside India. The source of income—namely the taxpayer's customers—were foreign-based. Therefore, even though services were in the nature of technical services because they were covered within the exclusion under section 9(1)(vii)(b) of the Income-tax Act, 1961, tax was not required to be withheld. The case is: Motif India Infotech Pvt Ltd. Read a November 2018 report [PDF 632 KB] 

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. For more detail about our structure please visit

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal