close
Share with your friends

Tax Flash news - Archive 2014

Tax Flash news - Archive 2014

Tax Flash news - Archive 2014

Tax Flash news - Archive 2014

12/24/2014 - India signs first bilateral APA with Japan - Business Standard, dated 19 December 2014 (PDF 388 KB)

12/24/2014 - Deputation of employees by US company to Indian group company for providing support services constitutes Service PE - Morgan Stanley International Incorporated v. DIT (I .T.A. No.6882/Mum/2011) (Mum) – Taxsutra.com (PDF 447 KB)

12/23/2014 - Battery charger sold along-with the cell phone cannot be held to be a composite part of the cell phone but is an independent product - State of Punjab & Ors. v. Nokia India Pvt Ltd. (Civil Appeal Nos. 11486-11487 of 2014) – (P & H) – Taxsutra.com (PDF 441 KB)

12/22/2014 - KPMG India Tax Konnect – December 2014 (PDF 532 KB)

12/18/2014 - Cabinet clears the Constitutional Amendment Bill - GST moving towards a reality by April 2016 - The Constitution (122nd Amendment) (GST) Bill, 2014(PDF 397 KB)

12/17/2014 - Tourist visa on arrival to India extended to 43 countries - www.mha.nic.in (PDF 391 KB)

12/12/2014 - Management service fees are not taxable as FTS under the India-Sweden tax treaty by applying the MFN clause - Sandvik AB v. DDIT [2014] 52 taxmann.com 211 (Pune) (PDF 447 KB)

12/12/2014 - Capital gains tax liability arises in the year of execution of the Joint Development Agreement, which grants possession over the land through irrevocable license - ITO v. Sri N.S. Nagaraj (ITA No.676/Bang/2011 – AY 2007-08), (ITA No.676/Bang/2011 – AY 2007-08) – (Bang) – Taxsutra.com (PDF 447 KB)

12/10/2014 - Karnataka Industrial Policy 2014-19 - Government Order Number CI 58 SPI 2013 dated 01 October 2014 (PDF 442 KB)

12/8/2014 - CVD on DTA clearance from a SEZ unit exempt if like goods are exempt from excise duty - Roxul Rockwool Insulation India Private Limited v. UOI (Special Civil Application No. 8869 of 2014, dated 27 and 28 November 2014) (PDF 434 KB)

12/5/2014 - Fees charged by bank for providing credit card swiping machine is not ‘commission’ and such fees are not liable for withholding of tax - CIT v. JDS Apparels Private limited (ITA No. 608/2014) – (Del) – Taxsutra.com (PDF 464 KB)

12/3/2014 - Payment for transfer of broadcasting rights of live races does not amount to royalty - Delhi Race Club (1940) Ltd. v. ACIT [2014] 51 taxmann.com 550 (Del) (PDF 493 KB)

12/1/2014 - The Bombay High Court upholds in favour of Shell India and Essar Projects on the issue of share valuation - Shell India Markets Pvt. Ltd. v. ACIT LTU and ors [2014] 51 taxmann.com 519 (Bom) (PDF 575 KB)

11/25/2014 - Payment for hiring dredgers does not amount to royalty under the India-Netherlands tax treaty - CIT v. Van Oord ACZ Equipment BV [2014] 51 taxmann.com 356 (Mad) (PDF 444 KB)

11/24/2014 - Tax treaty benefit is available to a U.K. partnership firm - P & O Nedlloyd Ltd. & Ors v. ADIT (Writ Petition Nos. 457 and 458 of 2005) – (Cal) – Taxsutra.com (PDF 406 KB)

11/24/2014 - Liaison Office is engaged in the actual marketing of the products of the foreign company, and therefore the income attributable to the Liaison Office is taxable in India - Brown and Sharpe Inc. v. CIT [2014] 51 taxmann.com 327 (All) (PDF 457 KB)

11/21/2014 - Pre-clinical research studies conducted by foreign companies make available skill, knowledge, expertise, etc. to the Indian company, therefore, such services are taxable as FTS under the tax treaty - Dr. Reddy’s Research Foundation v. DCIT (ITA.No.147/Hyd/2005) - (Hyd) –Taxsutra.com (PDF 445 KB)

11/21/2014 - Depreciation not allowed on toll road constructed under BOT basis since the toll road is owned by the Government and not by the developer - North Karnataka Expressway Ltd. v. CIT [2014] 51 taxmann.com 214 (Bom) (PDF 445 KB)

11/18/2014 - Bombay High Court confirms use of Resale Price Method in case of distributors where there is no value addition to goods resold - CIT v. L’Oreal India P. Ltd. (ITA No. 1046 of 2012, dated 7 November 2014) – (Bom) – Taxsutra.com (PDF 541 KB)

11/17/2014 - Installation and commissioning of the equipment is an assembly activity, not taxable as FTS in India. Training to Indian company’s employees by a foreign company for operation of the equipment is taxable as FTS -  ITO v. Bennet Coleman & Co. Ltd. [ITA No. 57/Mum/2009, ITA No. 7315/Mum/2008] – (Mum) – Taxsutra.com (PDF 491 KB)

11/14/2014 - OECD – BEPS Action Plan 7: Discussion Draft on preventing artificial avoidance of permanent establishment status - www.oecd.org (PDF 499 KB)

11/13/2014 - Non-Banking Finance Company - Revised regulatory framework (PDF 451 KB)

11/11/2014 - Payments to foreign company for services availed through Indian third party are not in the nature of reimbursement. Such payments are taxable as Fees for Included Services under the Canada tax treaty - AMD Research & Development Center India Private Limited v. DCIT (ITA No.692/Hyd/14, ITA No.693/Hyd/14, ITA No.694/Hyd/14 and ITA No.695/Hyd/14) - (Hyd) – Taxsutra.com (PDF 447 KB)

11/7/2014 - ‘Sogo shosha’ different from normal trading, no allocation for location saving and assembled workforce required; and Berry ratio an appropriate PLI where no funds are blocked due to inventory - Mitsubishi Corporation India Pvt. Ltd v. DCIT [2014] 50 taxmann.com 379 (Del) (PDF 338 KB)

11/7/2014 - KPMG India Tax Konnect – November 2014 (PDF 200 KB)

11/6/2014 - BEPS Action 10: Proposed modifications to Chapter VII of the Transfer Pricing Guidelines relating to low value-adding intra-group services - www.oecd.org (PDF 349 KB)

11/6/2014 - In view of the non-discrimination clause under the India-Japan tax treaty, no disallowance under Section 40(a)(i) is to be made in the hands of deductor if the non-resident has considered payments as income, paid taxes on the same - Mitsubishi Corporation India Pvt. Ltd v. DCIT [2014] 50 taxmann.com 379 (Del) (PDF 376 KB)

11/6/2014 - Indian branch of a foreign company forms a PE in India. Profit attributed on the basis of 50 per cent of the global profit rate of the foreign company - Consulting Engineering Corporation v. JDIT (I.T.A.No.1597/Del/2009; Assessment Year : 2003-04), (I.T.A. No. 1598/ Del/ 2009 AY 2004-05) and ADIT v. Consulting Engineers Corporation (I.T.A.No.1275/Del/2009 AY 2003- 04), (I.T.A. No. 1172 /Del/2009; Assessment Year : 2004-05) – (Del) – Taxsutra.com (PDF 325 KB)

10/31/2014 - Assessment order issued on a non-existent entity (pursuant to amalgamation) is void and such defect is not curable - CIT v. Dimension Apparels Pvt. Ltd. (ITA No. 327, 328, 329, 330 and 332 of 2014) – (Del) – Taxsutra.com (PDF 441 KB)

10/31/2014 - International Workers and their beneficiaries can now get disbursement of Provident Fund benefits into their overseas bank accounts (PDF 391 KB)

10/31/2014 - Depreciation is allowed on goodwill under Section 32 of the Income-tax Act - DCIT v. Toyo Engineering India Ltd. [Income Tax Appeal (L) No.1330 of 2012] – (Mum) – Taxsutra.com (PDF 397 KB)

10/31/2014 - SEBI replaces the erstwhile ESOP guidelines with new regulations - SEBI Notification, dated 28 October 2014 (PDF 330 KB)

10/31/2014 - The Bombay High Court allowed deduction of advertisement expenditure, since direct nexus exists between incurring high publicity of channel programme and an increase in taxpayer’s revenue - CIT v. N.G.C. Network (India) P. Ltd. [2014] 368 ITR 738 (Bom) (PDF 330 KB)

10/30/2014 - Government of India simplifies immigration procedures for Japanese nationals - Letter No. 159/2014, Embassy of India, Tokyo (PDF 400 KB)

10/28/2014 - Once the RBI has approved the royalty rate, the payment was considered to be held at arm’s length - DCIT v. Owens Corning Industries (India) Pvt. Ltd. [2014] 51 taxmann.com 276 (Hyd) (PDF 448 KB)

10/21/2014 - The Delhi High Court has set aside the AAR’s ruling and sent the matter back to consider the taxability of operational and other support services to group companies under India-Netherlands tax treaty - Perfetti Van Melle Holdings B.V. v. AAR [2014] 52 taxmann.com 161 (Delhi) (PDF 448 KB)

10/20/2014 - CBDT extends the concessional rate (5 per cent) of withholding tax on the interest payments to a non-resident on borrowing by way of any long term bonds in foreign currency - CBDT Circular No. 15 of 2014 [F No. 133/50/2014-TPL] dated 17 October 2014 (PDF 283 KB)

10/16/2014 - Pune Tribunal rejects high margin companies, after considering if the high profits reflect a normal business phenomena or they are a result of certain abnormal conditions - Cummins Turbo Technology Limited v. DDIT (ITA Nos. 161 & 269/PN/2013) – (Pune) – Taxsutra.com (PDF 323 KB)

10/16/2014 - Marketing services provided by Indian entity to overseas entity would qualify as 'export' - Microsoft Corporation India Private Limited v. CST, New Delhi [2014-TIOL-1964-CESTAT-DEL] (PDF 437 KB)

10/14/2014 - Disallowance under Section 14A cannot be made unless the exempt income has been received during the year - Alliance Infrastructure Projects Pvt. Ltd. v. DCIT [ITA No. 220 & 1043(Bang)/2013] – (Bang) – Taxsutra.com (PDF 435 KB)

10/10/2014 - Disallowance of expenditure on account of non-deduction of tax is also applicable to the amounts which are already been paid - DCIT v. Rana Sugars Ltd (ITA No. 48/Chd/2011) – (Chd) – Taxsutra.com (PDF 328 KB)

10/9/2014 - KPMG India Tax Konnect - October 2014 (PDF 335 KB)

10/9/2014 - CBDT supersedes its earlier circular on allowability of deduction under Section 10A/10AA on transfer of technical manpower in the case of software industry, in line with Rangachary Committee’s recommendations - CBDT Circular No.14/2014, dated 8 October 2014 (PDF 426 KB)

10/8/2014 - MAT provisions do not apply to foreign banking companies for the relevant Assessment Year. Interest paid by a branch of a foreign bank to HO is allowable and such interest is not taxable in the hands of HO - The Bank of Tokyo-Mitsubishi UFJ Ltd v. ADIT [2014] 49 taxmann.com 441 (Del) (PDF 448 KB)

10/8/2014 - The Government of India amends Person of Indian Origin Card Scheme - Ministry of Home Affairs Notification 25024/9/2014 – F.I. dated 30 September 2014 (PDF 448 KB)

10/1/2014 - Supreme Court strikes down constitutional validity of the National Tax Tribunal Act - Madras Bar Association v Union of India and another [2014] 271 CTR 257 (SC) (PDF 382 KB)

10/1/2014 - CBDT amends Income-tax Rules with respect to issue of certificate for deduction of tax at lower rate or no deduction of tax - CBDT Notification No.46/2014, dated 24 September 2014 (PDF 406 KB)

9/29/2014 - CBDT directs income-tax authorities to limit the scope of enquiry under Computer Aided Scrutiny Selection. Comprehensive scrutiny in specified cases can be conducted only after approval of prescribed authorities - CBDT Instruction No. 7/2014, dated 26 September 2014 (PDF 337 KB)

9/25/2014 - Several High Courts have directed the CBDT to extend the due date for filing of income-tax returns from 30 September to 30 November 2014 - All India Federation of Tax Practitioners v. CBDT (WP No. 25443 and 26306 to 26310 of 2014);The Chamber of Tax Consultants & Others v. UOI (WP No. 2492 of 2014) Source - www.taxguru.in (PDF 392 KB)

9/25/2014 - OECD – BEPS Action Plan 8: Guidance on Transfer Pricing Aspects of Intangibles - www.oecd.org (PDF 316 KB)

9/24/2014 - The Mumbai Tribunal held that non-charging of interest attracts transfer pricing provisions and also affirms the DRP’s order striking the secondary adjustment - PMP Auto Components P. Ltd. v. DCIT [2014] 66 SOT 42 (Mum) (PDF 420 KB)

9/24/2014 - Copyright subsists in the news reports and photographs supplied by a French news agency, therefore, payments for the use of same is taxable as ‘royalty’ - Agence France Presse v. ADIT [2014] 66 SOT 183 (Del) (PDF 468 KB)

9/23/2014 - Taxpayer is eligible for lower rate of tax under Section 115A of the Act on payment of royalty since the new agreements entered into by the taxpayer were not an extension of old agreements - GKN Holdings Plc v. DDIT [2014] 66 SOT 54 (Pune) (URO) (PDF 436 KB)

9/19/2014 - OECD – BEPS action plan 13: transfer pricing documentation and country-by-country reporting - www.oecd.org (PDF 444 KB)

9/17/2014 - BEPS - OECD Releases reports on 7 out of 15 action points - www.oecd.org (PDF 494 KB)

9/17/2014 - Supreme Court lays down important principles on retrospective taxation while dealing with applicability of surcharge in cases of block assessment - CIT v. Vatika Township (P) Ltd. [2014] 367 ITR 466 (SC) (PDF 351 KB)

9/10/2014 - Discount allowed to foreign buyers towards advance payment on sales is treated as interest, and therefore liable for withholding of tax under Section 195 of the Act - DCIT v. Kothari Food & Fragrances [2014] 50 taxmann.com 213 (Lkw) (PDF 456 KB)

9/10/2014 - KPMG India Tax Konnect - September 2014 (PDF 358 KB)

9/9/2014 - The Karnataka High Court upheld the Tribunal’s judgment that the CIT has no revisionary powers under Section 263 of the Act once the ALP is accepted by the AO/TPO - CIT v. SAP Labs Private Limited (Income Tax Appeal No.339 OF 2010 and Income Tax Appeal No.842 of 2010) – (Kar) – Taxsutra.com (PDF 448 KB)

9/5/2014 - CBDT lays down procedure and criteria for compulsory manual selection of cases for scrutiny during the financial year 2014-15 - CBDT Instruction No. 6 of 2014, dated 2 September 2014 (PDF 272 KB)

9/4/2014 - Disallowance of expenditure under Section 40(a)(ia) of the Income-tax Act – the law is evolving - ITO v. Pratibhuti Viniyog Ltd. (ITA No. 1689/Mum/2011) Capital Pharma v. ITO [2014] 50 taxmann.com 411 (Bang) (PDF 304 KB)

9/1/2014 - Social security agreement between India and Czech Republic effective from 1 September 2014 - www.epfindia.com/Circulars/Y2014-15/IWU_SSA_CzechRepublic_ 13648 (PDF 272 KB)

9/1/2014 - The Government of India issues notification on enhancing wage ceiling from existing INR6,500 to INR15,000 for schemes framed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 - www.epfindia.gov.in/Circulars/Y2014-15/Coord_SchemeAmendment _ 13637 (PDF 324 KB)

9/1/2014 - CBDT sets-up a Committee to examine fresh cases referred by the tax officer in respect of indirect transfer of assets prior to 1 April 2012 - CBDT Order F. No. 149/141/2014-TPL, dated 28 August 2014 (PDF 328 KB)

8/28/2014 - Relaxation in Foreign Direct Investment norms in defence and rail infrastructure - Press Note No.7 dated 26 August 2014 and No. 8 dated 27 August 2014 (2014 Series) issued by the DIPP (PDF 336 KB)

8/26/2014 - Investment which has not resulted in any income cannot be considered for disallowance under Section 14A read with Rule 8D(2)(i) of the Rules - Bellwether Microfinance Fund Pvt. Ltd. v. ITO [2014] 65 SOT 75 (Hyd) (PDF 312 KB)

8/25/2014 - Public provident fund limit enhanced from INR100,000 to INR150,000 - Gazette of India - Notification dated 13 August 2014 (PDF 300 KB)

8/19/2014 - Haryana Composition Scheme for real estate developers – VAT on sale of residential and commercial properties (flats, shops, etc.) may be discharged at the rate of 1 per cent of the total contract value - Notification No. S.O.88/H.A. 6/2003/S. 60/2014, dated 12 August 2014 (PDF 432 KB)

8/19/2014 - The Supreme Court admitted Revenue’s Special Leave Petition against Delhi High Court’s order rejecting Arm’s Length Price determination based on Free On Board value of goods in the case of Li & Fung India Private Limited - CIT v. Li & Fung India Pvt. Ltd. (SLP No(s). 11346/2014) (PDF 456 KB)

8/12/2014 - Services which do not impart technical know-how or transfer any knowledge, experience, or skills, cannot be taxed as royalty - GECF Asia Limited v. DDIT [2014] 34 ITR(T) 303 (Mum) (PDF 400 KB)

8/8/2014 - KPMG India Tax Konnect - August 2014 (PDF 270 KB)

8/7/2014 - The Hyderabad Tribunal adjudicates on rejection of certain comparables from the standard ITES set selected by the TPO in three different rulings, consequentially dropping the average PLI as low as 10.78 per cent - Capital IQ Information Systems (India) Private Limited v. ACIT [2014] 49 taxmann.com 313 (Hyd) Excellence Data Research Private Limited v. ITO [2014] 66 SOT 15 (Hyd) Hyundai Motors India Engineering Private Limited v. DCIT [2014] 49 taxmann.com 290 (Hyd) (PDF 460 KB)

8/7/2014 - The view taken in the case of BMW India Pvt. Ltd. is in conformity with the special bench ruling in the case of LG Electronics India Pvt. Ltd., and does not override the special bench - Bose Corporation India Pvt. Ltd. v. ACIT [2014] 150 ITD 542 (Del) (PDF 384 KB)

8/6/2014 - Share sale transaction between joint venture partners resulting in loss is not a ‘colourable device’ - CIT v. Siel Ltd (ITA No. 1616/2010 and ITA No. 1619/2010) – (Del) – Taxsutra.com (PDF 440 KB)

8/5/2014 - India’s Social Security Agreements with Finland and Sweden come into effect  (PDF 432 KB)

8/5/2014 - Gains arising in the hands of Mauritian company from sale of equity shares and CCDs of an Indian company are not taxable as interest income in India - Zaheer Mauritius v. DIT International Taxation-II [2014] 47 taxmann.com 247 (Del) (PDF 449 KB)

8/4/2014 - CBDT clarification on the tax treatment in the case of Alternative Investment Funds - CBDT Circular No. 13 of 2014, dated 28 July 2014 (PDF 424 KB)

8/4/2014 - Amendment with respect to deductibility of certain payments under Section 40(a)(ia) is curative in nature and therefore will apply retrospectively inspite of its prospective application by the Parliament - CIT v. Santosh Kumar Shetty [2014] 49 taxmann.com 47 (Kar) (PDF 448 KB)

8/1/2014 - Payment for the use of licensed software along with computer system to access the information on the foreign company’s portal constitutes royalty under the India-UK tax treaty - Reuters Transaction Services Ltd. v. DDIT [2014] 151 ITD 510 (Mum) (PDF 444 KB)

8/1/2014 - Tax-audit-report-requirements-amended - Income-tax (7th Amendment) Rules, 2014, dated 25 July 2014 (PDF 220 KB)

7/31/2014 - The Bombay High Court dealing with an Insurance Company’s case warned to impose cost on revenue authorities for raising repeated appeals on settled issues - CIT v. Kotak Mahindra Old Mutual Life Insurance Ltd (ITA No. 422 of 2012) – (Bom) – Taxsutra.com (PDF 436 KB)

7/30/2014 - Taxpayer is entitled to receive interest on self assessment tax from the date of assessment order, however, no interest on the interest due on refund is granted - Merck Limited v. CIT (W. P. No. 2529 of 2004) (Bom) – Taxsutra.com (PDF 441 KB)

7/29/2014 - CBDT clarifies on allowability of deduction under Section 10A/10AA on transfer of technical man-power in the case of software industry - CBDT Circular No. 12/2014, dated 18 July 2014 (PDF 264 KB)

7/28/2014 - Royalty/FTS income of a non-resident having PE in India in connection with the business of exploration, etc. of mineral oils, is taxable under Section 44BB of the Act prior to prospective amendment to these provisions of the Act - PGS Geophysical AS v. ADIT (ITA No 612/2012) Baker Hughes Asia Pacific Ltd. v. ADIT [2014] 151 ITD 79 (Del), CGG Marine SAS (now CGG Veritas Services SA) v. ADIT (ITA No.234/Del/2013) (PDF 395 KB)

7/25/2014 - Proposed amendments to the Finance No. 2 Bill, 2014 - http://indiabudget.nic.in (PDF 312 KB)

7/23/2014 - Gift of shares of one foreign subsidiary to another foreign subsidiary without consideration is not liable to capital gains tax. Transfer pricing adjustment on transfer of shares without consideration deleted - Redington (India) Limited v. JCIT [2014] 49 taxmann.com 146 (Chen) (PDF 463 KB)

7/22/2014 - Employees’ Provident Fund Organisation issues circular to its field officers to implement the proposed enhancement in statutory wage ceiling from INR6,500 to INR15,000 (PDF 315 KB)

7/21/2014 - The Chennai Tribunal rejects the TPO’s approach of reducing cash discount, outward freight, and storage charges from selling price, with regard to computation of Gross Profit Margin - Panasonic Sales & Services (I) Company Limited v. ACIT [2014] 34 ITR(T) 683 (Chen) (PDF 437 KB)

7/21/2014 - Draft SEBI Infrastructure Investment Trusts Regulations for public comments - www.sebi.gov.in (PDF 463 KB)

7/17/2014 - Retrospective amendment, short deduction of TDS should not attract disallowance under Section 40(a)(ia) with respect to payment of placement fees - ACIT v. NGC Networks (I) Pvt. Ltd. [2014] 150 ITD 772 (Mum) (PDF 482 KB)

7/16/2014 - The Delhi High Court upheld the Tribunal’s ruling, that trading intermediary (‘Sogo Shosha’ in Japanese context) is akin to trading activities, not provision of service - Mitsubishi Corporation India Private Limited v. ACIT [2014] 366 ITR 495 (Del) (PDF 440 KB)

7/14/2014 - Reopening completed assessments under Section 153C of the Income-tax Act and making reference to transfer pricing is invalid when no incriminating material found during search - The Himalaya Drug Company v. DCIT [2014] 48 taxmann.com 65 (Bang) (PDF 454 KB)

7/10/2014 - KPMG - India Union Budget 2014 - www.indiabudget.nic.in (PDF 890 KB)

7/10/2014 - Indian Economic Survey 2013-14 – Key Highlights - www.indiabudget.nic.in (PDF 533 KB)

7/10/2014 - Budget 2014 proposals – India transfer pricing regulations aligned to international norms - www.indiabudget.nic.in (PDF 430 KB)

7/9/2014 - The Haryana Draft Composition Scheme for real estate developers – VAT on sale of residential and commercial properties (flats, shops, etc.) may be discharged at the rate of 1 per cent of the total contract value - Notification No. Web 6/ H.A.6/ 2003/ S.60/2014 dated 5 July 2014 (PDF 311 KB)

7/9/2014 - Details of foreign employees on Linkedin is considered as additional evidence to determine the existence of PE in India - GE Energy Parts Inc. v. ADIT [2014] 33 ITR(T) 411 (Del) (PDF 325 KB)

7/9/2014 - Maharashtra value added tax – Introduction of electronic way bills - Notification No VAT 1514/CR 80/Taxation-1. Dated 23rd June, 2014 (PDF 373 KB)

7/8/2014 - Interest under Section 234A, 234B and 234C cannot be charged if the specific section is not mentioned in the assessment order - CIT v. Oswal Exports (ITA No. 386 of 2007) (PDF 432 KB)

7/8/2014 - Services in connection with assessing the viability of developing a port do not 'make available' technical knowledge, skills, etc. and therefore, is not taxable as FTS under the India-U.K. tax treaty - ITO v. Dholera Port Ltd. and Adani Port-Infrastructure Pvt. Ltd. [2014] 165 TTJ 684 (Ahd) (PDF 414 KB)

7/7/2014 - Share transfer pursuant to family arrangement is not considered as gift - ACIT v. Bilakhia Holdings P. Ltd. [2014] 65 SOT 195 (Ahd) (PDF 441 KB)

7/4/2014 - Weighted deduction under Section 35(2AB) is not allowed while computing the income of Section 10A/10B unit. - Biocon Limited v. DCIT [2013] 25 ITR(T) 602 (Bang) (PDF 456 KB)

7/4/2014 - Capital gains exemption is not available on conversion of a private limited company into an LLP if exemption conditions are violated - Aravali Polymers LLP v. JCIT [2014] 65 SOT 11 (Kol) (PDF 442 KB)

7/4/2014 - KPMG India Tax Konnect - July 2014 (PDF 231 KB)

7/2/2014 - Supervisory services provided by a foreign company through its technicians do not constitute a PE in India, however it is taxed as FTS (PDF 447 KB) - GFA Anlagenbau Gmbh v. ACIT [2014] 34 ITR(T) 73 (Hyd) (PDF 447 KB)

6/24/2014 - Payments for BSP link services are not ‘Fees for Technical Services’ under India-France tax treaty by virtue of MFN clause - DDIT v. IATA BSP India [2014] 64 SOT 290 (Mum) (PDF 444 KB)

6/23/2014 - The MCA provides clarity on Corporate Social Responsibility under the Companies Act, 2013 - Ministry of Corporate Affairs Circular No. 21 of 2014, dated 18 June 2014 (PDF 414 KB)

6/20/2014 - SEBI issues press release regarding proposed amendments to ESOP guidelines - SEBI Press Release No. 63/2014, dated 19 June 2014 (PDF 407 KB)

6/19/2014 - Taxpayer is entitled to compensation for the delay in payment of interest due on refund - The Sirpur Paper Mills Ltd. v. JCIT [2014] 270 CTR 371 (AP) (PDF 439 KB)

6/16/2014 - The Delhi Tribunal extends the benefit of 182 days for determination of residential status for self-employed professionals going abroad - ACIT v. Jyotinder Singh Randhawa [2014] 64 SOT 323 (Del) (PDF 436 KB)

6/16/2014 - Indian subsidiary of a foreign telecom company constitutes a PE under India-US tax treaty. Attributed 50 per cent of profit to the PE in India - Nortel Networks India International Inc. v. DDIT [2014] 65 SOT 158 (Del) (PDF 445 KB)

6/12/2014 - Payment for pay channel charges made prior to retrospective amendment are taxable as royalty, however, it cannot be disallowed for non-deduction of tax - Kerala Vision Ltd. v. ACIT [2014] 64 SOT 328 (Coch) (PDF 439 KB)

6/9/2014 - Rejects the TPO’s approach of using a PSM for agency services; the taxpayer assumed minimal risk, performed limited functions - Marubeni Corporation, Japan [2014] 44 taxmann.com 22 (Mum) (PDF 449 KB)

6/6/2014 - Liberalisation of visa guidelines - http://mha.nic.in/ (PDF 378 KB)

6/6/2014 - Maharashtra Budget 2014-15 - Key indirect tax proposals/changes - www.idt.taxsutra.com (PDF 373 KB)

6/6/2014 - KPMG India Tax Konnect - June 2014 (PDF 264 KB)

6/4/2014 - TDS credit cannot be denied to the taxpayer on the grounds of mismatch of TDS amount with the details shown in Form 26AS - Rakesh Kumar Gupta v. Union of India and another [2014] 365 ITR 143 (All) (PDF 397 KB)

6/4/2014 - The Hyderabad Tribunal accepts revised return making suo moto adjustment as valid; however, denied the plus/minus five per cent benefit on the adjusted ALP - Tecumseh Products India P. Ltd. v. ACIT [2014] 46 taxmann.com 285 (Hyd) (PDF 428 KB)

6/2/2014 - Delhi High Court rules that TP reference does not curtail test of deductibility of expenses under Section 37 of the IT Act, 1961. Holds that cost-to-cost reimbursement transactions should also be benchmarked from an arm’s length perspective - CIT v. Cushman and Wakefield (India) Pvt. Ltd. [2014] 367 ITR 730 (Del) (PDF 487 KB)

5/30/2014 - AAR holds that fees paid to Sri Lankan executive for promotion of sales and brand name is not FTS under the Income-tax Act. Further the fees are not taxable under ‘Independent Personal Services’ Article under the Sri Lanka tax treaty - Oxford University Press., In re [2014] 364 ITR 251 (AAR) (PDF 437 KB)

5/30/2014 - The Authority of Advance Rulings holds that lump sum contribution to Defined Benefit Superannuation Scheme is not taxable in the hands of individual employees - The Royal Bank of Scotland [2014] 364 ITR 373 (AAR) (PDF 447 KB)

5/28/2014 - Employees’ Provident Fund Organisation issues guidelines on surcharge to be levied for investment deviations and re-auditing of accounts for private provident fund trusts (PDF 350 KB)

5/23/2014 - Mumbai Tribunal confirms concealment penalty under Section 271(1)(c) of the Income-tax Act and also rules on the validity of revised return - Deloitte Consulting India Pvt. Ltd. v. ACIT [2014] 151 ITD 454 (Mum) (PDF 447 KB)

5/21/2014 - Income from shares purchased and sold through a discretionary portfolio management scheme is taxable as capital gains and not business income - Radials International v. ACIT (ITA No. 485/2012 dated 25 April 2014) – (Del) – Taxsutra.com (PDF 489 KB)

5/20/2014 - Profit on sale of mutual fund units held as investment are taxable under the head ‘capital gains’ and not ‘business income’ - Yama Finance Ltd v. ACIT [2014] 224 Taxman 260 (Del) (PDF 438 KB)

5/20/2014 - AAR denies benefit of MFN clause under India-France tax treaty with respect to ‘make available’ clause - Steria (India) Ltd. [2014] 364 ITR 381 (AAR) (PDF 466 KB)

5/15/2014 - Transfer of undertaking not involving monetory consideration is an exchange transaction and not slump sale - CIT v. Bharat Bijlee Ltd. [2014] 365 ITR 258 (Bom) (PDF 314 KB)

5/13/2014 - Cost of tenancy rights if determinable should be considered while computing capital gains - Tauqeer Fatema Rizvi v. ITO (ITA No. 8862/Mum./2011) – (Mum) - Taxsutra.com (PDF 353 KB)

5/13/2014 - Supreme Court holds that the carry forward losses of amalgamating co-operative societies cannot be claimed by amalgamated co-operative society - Rajasthan R.S.S. & Ginning Mills Fed. Ltd. v. DCIT [2014] 363 ITR 564 (SC) (PDF 438 KB)

5/8/2014 - KPMG India Tax Konnect - May 2014 (PDF 247 KB)

5/7/2014 - Additional clarifications on value added tax with regard to Andhra Pradesh state reorganisation - reorganisation.ap.gov.in (PDF 397 KB)

5/5/2014 - Royalty income is not taxable in India since there is no economic link between the payment of royalties and taxpayer’s permanent establishment in India - DIT v. Set Satellite (Singapore) Pte Ltd [2014] 225 Taxman 1 (Bom) (PDF 439 KB)

5/2/2014 - Clarifications on value added tax with regard to Andhra Pradesh state reorganisation - reorganisation.ap.gov.in (PDF 270 KB)

5/2/2014 - Unused period of a rig due to repairs and maintenance does not constitute a Permanent Establishment in India - DIT v. R & B Falcon Offshore Ltd. [2014] 223 Taxman 266 (Utt) (PDF 300 KB)

5/2/2014 - Seconded employees to provide business support services constitute Service PE in India. Further such Services also ‘make available’ technical knowledge, skill, etc. and therefore taxable as FTS/FIS - Centrica India Offshore Pvt. Ltd. v. CIT [2014] 364 ITR 336 (Del) (PDF 334 KB)

4/30/2014 - Payment by an Indian animation film production company to foreign sub-contractor for creating ‘production material’ is not Fees for Technical Services - ADIT v. DQ Entertainment (International) P. Ltd. [2014] 64 SOT 152 (Hyd) (PDF 329 KB)

4/29/2014 - Delhi High Court holds on the taxability of offshore and onshore supply and services under the composite contract - Linde AG, Linde Engineering Division and Anr. v. DDIT [2014] 365 ITR 1 (Del) (PDF 439 KB)

4/25/2014 - CBDT clarifies that the cost of construction on development of infrastructure facility like roads and highways under BOT projects may be amortised and claimed as allowable business expenditure - CBDT Circular 9 of 2014, dated 23 April 2014 (PDF 379 KB)

4/25/2014 - Delhi Tribunal upheld taxpayer's residual PSM over TPO’s TNMM and held that allocation of residual profits to be done based on contribution from each entity - Global One India P Ltd. v. ACIT [2014] 31 ITR(T) 722 (Del) (PDF 466 KB)

4/25/2014 - Section 50C is applicable to transfer of leasehold rights of a land for 99 years since it is a capital asset - ITO v. Shri Hari Om Gupta [ITA No.222/LKW/2013] (Assessment Year - 2007-08) – (Lkw) – Taxsutra.com (PDF 375 KB)

4/23/2014 - Services rendered by a Mauritian company for improving the management performance of an Indian company, through its employees, having some place at its disposal, constitutes fixed place PE in India - Renoir Consulting Ltd. v. DDIT [2014] 64 SOT 28 (Mum) (PDF 434 KB)

4/21/2014 - Payments to a non-resident company for transmission of bulk SMS does not amount to Fees for Technical Service - DCIT v. Velti India Pvt. Ltd. [2014] 163 TTJ 691 (Chen) (PDF 319 KB)

4/17/2014 - KPMG India Tax Konnect - April 2014 (PDF 192 KB)

4/11/2014 - Payment for telecom towers and network infrastructure services constitutes ‘rent’ for the use of machinery, plant or equipment, which attracts withholding of tax at the rate of 2 per cent - Indus Towers Ltd. v. CIT & Ors [2014] 364 ITR 114 (Del) (PDF 444 KB)

4/10/2014 - CBDT clarifies that the partner’s share of profit in the firm’s total income is exempt in the hands of partner even if the income is exempt in the hands of the firm - CBDT Circular 8 of 2014, dated 31 March 2014 (PDF 430 KB)

4/10/2014 - Reserve Bank of India includes provisions permitting foreign investments in Limited Liability Partnership in FEMA - Notification No. FEMA. 297/2014-RB, dated 13 March 2014 (PDF 437 KB)

4/8/2014 - Direct Taxes Code 2013 - Press Release, dated 31 March 2014 (PDF 459 KB)

4/4/2014 - Employees’ Provident Fund Organisation issues new circulars to secure proper compliance in respect of International Workers (PDF 551 KB)

4/3/2014 - India signs its first set of Advance Pricing Agreements (APAs) in one year since introduction of the APA program - Economic Times, dated 1 April 2014 (PDF 392 KB)

4/1/2014 - Reimbursement of data processing cost is not taxable as royalty under the Belgium tax treaty - ADIT v. Antwerp Diamond Bank NV [2014] 65 SOT 23 (Mum) (PDF 392 KB)

3/26/2014 - Introduction of facility of for the issuance of an Electronic Export Obligation Discharge Certificate - Public Notice no. 55 (RE-2013/ 2009-2014) dated 14 March 2014 (PDF 273 KB)

3/25/2014 - Income from supply of telecommunications network equipment and software taxable as business income under India-China tax treaty - Huawei Technologies Co. Ltd. v. ACIT [2014] 149 ITD 323 (Del) (PDF 329 KB)

3/21/2014 - The Supreme Court held that interest is payable to a tax deductor on refund of excess tax withheld - Union of India v. Tata Chemicals Ltd. [2014] 222 Taxman 225 (SC) (PDF 478 KB)

3/19/2014 - Proportionate allotment of additional shares does not result into income under Section 56(2)(vii)(c) of the Act - Sudhir Menon HUF v. ACIT [2014] 148 ITD 260 (Mum) (PDF 454 KB)

3/18/2014 - The Delhi Tribunal held that corporate guarantee issued for AEs benefit, which did not cost anything to the taxpayer, does not constitute international transaction - Bharti Airtel Ltd. v. ACIT [2014] 63 SOT 113 (Del) (PDF 466 KB)

3/13/2014 - Service tax on services received and consumed abroad - Infosys Limited v. CST, Bangalore, [TS-64-Tribunal-2014 (Bang)] (PDF 289 KB)

3/12/2014 - Claim of R&D expenditure is allowed under Section 35(2AB) even though the same was claimed during the assessment proceedings and not in the original or revised return of income - DCIT v. United Rubber Industries India Pvt. Ltd. (ITA No.6198/Mum/2012) – (Mum) – Taxsutra.com (PDF 307 KB)

3/11/2014 - CBDT clarifies on tax withholding obligation in respect of payments made to non-resident - CBDT Instruction No. 02/2014, dated 26 February 2014 (PDF 392 KB)

3/10/2014 - Indian Government declares interest rate on Employees’ Provident Fund Scheme (PDF 417 KB)

3/7/2014 - Supervisory fees paid for installation of equipment are taxable as FTS and not as business profits since such fees are not effectively connected with a Permanent Establishment in India - Sumitomo Corporation v. DCIT [2014] 31 ITR(T) 310 (Del) (PDF 444 KB)

3/7/2014 - KPMG India Tax Konnect - March 2014 (PDF 265 KB)

3/6/2014 - Procedures prescribed for the refund of Cenvat credit taken on inputs and input services used for providing specified services on which Service tax is payable under the partial reverse charge mechanism - Notification No. 12/2014-Central Excise (N.T.), dated 3 March 2014 (PDF 384 KB)

3/5/2014 - The Mumbai Tribunal upholds use of internal CUP with appropriate adjustments for broking transactions - J P Morgan India Private Limited v. ACIT [2014] 151 ITD 459 (Mum) (PDF 461 KB)

3/5/2014 - AAR interprets the extension of 182 days for determination of residential status - not applicable in case of person returning to India after resigning from overseas employment - Smita Anand [2014] 362 ITR 38 (AAR) (PDF 469 KB)

3/4/2014 - Payment for offshore supply of equipment is not taxable in India. A portion of consideration for offshore supply attributed to services performed in India - POSCO Engineering & Construction Company Ltd. v. ADIT [2014] 31 ITR(T) 255 (Del) (PDF 497 KB)

2/26/2014 - R&D related weighted deduction under Section 35(2AB) should be available even if approval in the prescribed format is signed by Nodal Officer and not by Secretary, DSIR - ACIT v. Fermet Biotech Limited [2014] 64 SOT 246 (Mum) (PDF 320 KB)

2/26/2014 - AAR held that to accept an application there has to be a transaction or a proposed transaction and not mere intention - Trade Circle Enterprises LLC [2014] 361 ITR 673 (AAR) (PDF 275 KB)

2/26/2014 - The Central Government amends Rule 7 of the CENVAT Credit Rules 2004  - CBEC Notification No. 05/2014 – Central Excise (N.T.) dated 24 February 2014(PDF 279 KB)

2/25/2014 - Payments to a Philippine company for providing business information services are not taxable in the absence of FTS clause under the tax treaty and PE in India - IBM India Private Limited v. JCIT [I.T. (IT) A. Nos. 489 to 498/Bang/2013] – (Bang) – Taxsutra.com (PDF 470 KB)

2/24/2014 - Salary received in an Indian bank account by a non-resident, employed outside India, is not taxable - Arvind Singh Chauhan v. ITO [2014] 147 ITD 509 (Agra) (PDF 469 KB)

2/24/2014 - The Mumbai Tribunal deletes addition on export related advertisement reimbursement - Lever India Exports Limited v. ACIT [2014] 64 SOT 45 (Mum) (PDF 394 KB)

2/21/2014 - KPMG Regulatory Highlights for 2013 (PDF 587 KB)

2/18/2014 - India Vote on account – Interim Budget 2014 (PDF 1000 KB)

2/14/2014 - The Bangalore Tribunal adjudicates on the most appropriate method for contract manufacturers - DCIT v. GE BE Pvt. Ltd. [2014] 64 SOT 129 (Bang) (PDF 530 KB)

2/13/2014 - CBDT clarifies that expenditure incurred in relation to exempt income would be disallowed under Section 14A even if no such income has been earned in a particular year - CBDT Circular No. 5/2014, dated 11 February 2014 (PDF 268 KB)

2/11/2014 - Indian subsidiary of a foreign company providing back office support operations does not constitute a PE in India - DIT v. E Funds IT Solutions [2014] 226 Taxman 44 (Del) (PDF 491 KB)

2/6/2014 - KPMG India Tax Konnect - February 2014 (PDF 191 KB)

2/5/2014 - OECD - BEPS-related transfer pricing documentation country-by-country reporting draft guidance - www.oecd.org (PDF 441KB)

1/31/2014 - CBDT decides to keep in abeyance the revised PAN allotment process change - PIB Press Release, dated 30 January 2014 (PDF 332 KB)

1/31/2014 - The Supreme Court ruling on admissibility of an application by the AAR when the income-tax return has already been filed - Sin Oceanic Shipping ASA v. AAR [2014] 223 Taxman 102 (SC) (PDF 377 KB)

1/24/2014 -Kolkata Tribunal holds the income from ‘transfer of right to purchase flat’ as ‘capital gains’ - Subhas Chandra Parmanandka v. ITO (ITA No.1614/Kol/2010) – (Kol) – Taxsutra.com (PDF 432 KB)

1/24/2014 - PAN allotment process undergoes change original documents required to be produced for verification at the time of app - CBDT Press Release, dated 23 January 2014 (PDF 333 KB)

1/23/2014 - Interest expenditure was not disallowed under Section 14A because the taxpayer had sufficient own funds available for investment - CIT v. Gujarat Narmada Valley Fertilizers Co Ltd. [2014] 221 Taxman 479 (Guj) (PDF 386 KB)

1/23/2014 - Since Liaison office has been rendering services for promotion and sales of products in India, the income attributable to such liaison office is taxable in India - Brown & Sharpe Inc. v. ACIT [2014] 160 TTJ 1 (Del) (PDF 435 KB)

1/22/2014 - Additional guidelines on employment visa and business visa - http://mha.nic.in (PDF 375 KB)

1/22/2014 - Interest income and import entitlement sale consideration are eligible for benefit under Section 10B of the Act since there is a direct nexus between such income and business of the undertaking - CIT v. Motorola India Electronics (P) Ltd. [2014] 225 Taxman 11 (Kar) (PDF 437 KB)

1/21/2014 - Allowability of employees' contribution deposited beyond the due date specified under the PF Act but before the due date of filing of income-tax return - CIT v. Gujarat State Road Transport Corporation [2014] 366 ITR 170 (Guj) ITO v. Jaipur Vidyut Vitran Nigam Ltd. [2014] 363 ITR 307 (Raj) (PDF 358 KB)

1/20/2014 - Cenvat Credit with respect to service tax paid on transportation of final products - Ultratech Cement Limited v. CCE [TS-248-Tribunal-2013-EXC] (PDF 445 KB)

1/17/2014 - CBEC clarification on implementation of Fiat India Ltd. case - CBEC Circular No.979/03/2014-CX, dated 15 Jan 2014 (PDF 403 KB)

1/17/2014 - Extension of Special Package of Industrial Incentive for the States of Himachal Pradesh and Uttarakhand - Press release dated 15 January 2014 (PDF 346 KB)

1/17/2014 - Payment for perpetual transfer of copyright in a feature film for 99 years amounts to sale and not royalty - K. Bhagyalakshmi v. DCIT [2014] 221 Taxman 225 (Mad) (PDF 434 KB)

1/16/2014 - Tax liability cannot be fastened on foreign company without establishing that the income is attributable to the Permanent Establishment situated in India - Samsung Heavy Industries Co. Ltd. v. DIT [2014] 221 Taxman 315 (Utt) (PDF 429 KB) 

1/15/2014 - Reserve Bank of India issues pricing guidelines for Foreign Direct Investment instruments with optionality clauses - RBI A.P.(DIR Series) Circular No.86, dated 9 January 2014 source: www.rbi.org.in (PDF 374 KB)

1/14/2014 - Arm’s Length Price of an international transaction cannot exceed the ‘Final Sales Price’- Supreme Court dismisses Revenue Special Leave Petition against Global Vantedge Ruling - CIT v. Global Vantedge Pvt. Ltd. [2014] with S.L.P.(C)...CC NO. 22166 of 2013 – Taxsutra.com (PDF 404 KB)

1/13/2014 - Reserve Bank of India permitted issue of non-convertible/redeemable bonus preference shares or debentures to non-resident shareholders under the automatic route - Circular No. A.P. (DIR Series) Circular No.84, dated 6 January 2014 (PDF 348 KB)

1/10/2014 - The Central Government amends Rule 3 of the CENVAT Credit Rules 2004 - CBEC Notification, dated 8 January 2014(PDF 357 KB)

1/10/2014 - KPMG India Tax Konnect - January 2014 (PDF 275 KB)

1/9/2014 - KPMG Tax Highlights for 2013 (PDF 371 KB)

1/7/2014 - KPMG Tax Assemblage - 2013 (PDF 591 KB)

1/6/2014 - CBDT issues important directives on Safe Harbour Rules - CBDT Letter dated 20 December 2013 (PDF 271 KB)

1/3/2014 - Recent developments in Special Economic Zone and Export Oriented Unit Schemes - Department of Commerce vide Office Memo F No. 1/10/2010-EOU dated 2 January 2014 (PDF 413 KB)

Connect with us

 

Want to do business with KPMG?

 

Request for proposal