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Tax Flash news - Archive 2018

Tax Flash news - Archive 2018

Tax Flash news - Archive 2018

Tax Flash news - Archive 2018

12/22/2018 - GST Council recommendations in its 31st meeting - (PDF 779 KB)

12/21/2018 - OECD report on the peer review of tax rulings in accordance with BEPS Action Plan 5 – India update - Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance - (PDF 658 KB)

12/18/2018 - Provisions of Section 56(2)(vii)(c) of the Income-tax Act do not apply to the proportionate issue of right shares - ACIT v. Shri. Subhodh Menon (ITA No. 676/Mum/2015, dated 7 December 2018) – Taxsutra.com - (PDF 561 KB)

12/13/2018 - In the case of joint buyers, the tax is not required to be deducted if the individual's share in a purchase consideration to acquire an immovable property does not exceed INR50 lakh - Vinod Soni and others v. ITO (ITA No. 2736/Del/2015) – Taxsutra.com - (PDF 730 KB)

12/12/2018 - Reduction in share capital amounts to ‘transfer’ and therefore capital losses are allowed to be set-off - Jupiter Capital Pvt Ltd v. ACIT (ITA No. 445/Bang/2018) – Taxsutra.com - (PDF 710 KB)

12/10/2018 - Registration not required of a location where goods are imported – AAR, Maharashtra - GST-ARA-48/2018-19/B-123 dated 27 September 2018 - (PDF 543 KB)

12/10/2018 - No penalty on account of human error – High Court, Kerala - 2018-VIL-553-KER - (PDF 687 KB)

12/10/2018 - The right of set-off of one-time non-refundable entry fee against the upfront fee payable for allotment of telecom licenses is not a ‘capital asset’ and therefore not taxable as capital gain - Telenor (India) Communications Pvt Ltd v. ACIT (ITA No. 7541/Del/2017) -Taxsutra.com - (PDF 771 KB)

12/08/2018 - The due date for filing of GST annual return and GST audit report extended - Press release dated 7 December 2018 - (PDF 603 KB)

12/05/2018 - Tax is not required to be deducted on reimbursement of manpower expenditure to the foreign company in the absence of any income element - DCIT v. DLF Projects Ltd (ITA No. 5178/Del/2014) – Taxsutra.com - (PDF 630 KB)

12/04/2018 - The Mumbai Tribunal decision on taxation aspects of conversion of a private limited company into a limited liability partnership - ACIT v. Celerity Power LLP (ITA No. 3637/Mum/2015) – Taxsutra.com - (PDF 640 KB)

11/30/2018 - Mauritius Revenue Authority issues POEM guidelines laying down twin conditions for determining the tax residency status of a company in Mauritius - With effect from 1 October 2018 – Source: KPMG Mauritius Budget Publication - (PDF 645 KB)

11/30/2018 - India visa regime gets more liberalised - For details, please refer: https://home.kpmg/content/dam/kpmg/in/pdf/2018/04/KPMG-Flash-News-Government-of-India-issues-detailed-visa-guidelines-2.pdf - (PDF 645 KB)

11/28/2018 - Employees’ Provident Fund Organisation stipulates the procedure for extension of Certificate of Coverage beyond the normal period covered in respective Social Security Agreements - EPFO Circular - https://www.epfindia.gov.in/site_docs/PDFs/Circulars/Y2018- 2019/IWU_COC_20112018.pdf - (PDF 727 KB)

11/23/2018 - OECD guidance for the development of synthesised texts to provide clarity on the impact of the Multilateral Instruments - The Guidance also provides Per-Article sample boxes with respect to all the article of MLI for the development of synthesized texts. The synthesized text of the 2014 OECD Model Tax Convention as modified by MLI has also been given by way of an Annexure in the Guidance. - (PDF 1.2 MB)

11/20/2018 - Recovery of penal interest cannot be construed as additional interest – AAR, Maharashtra - 1 2018-VIL-275-AAR - (PDF 532 KB)

11/20/2018 - Common expenditure should be allocated to the tax holiday unit while computing deduction under Section 80-IA of the Income-tax Act - Rajasthan State Mines & Minerals Ltd. v. DCIT (ITA No. 704/JP/2018) – Taxsutra.com - (PDF 614 KB)

11/15/2018 - Service Tax – Credit availed on telecom towers, shelter and accessories are admissible under the CENVAT Credit Rules – Delhi High Court - 2018-VIL-506-DEL-CE - (PDF 710 KB)

11/15/2018 - Perquisite arises as on date of allotment of shares under ESOP - Section 17(2) (vi) of the Act - (PDF 725 KB)

11/15/2018 - Cost of the tools supplied for free should be added to the value of goods supplied – AAR, Karnataka - Nash Industries (I) Pvt. Ltd. 2018-VIL-266-AAR - (PDF 531 KB)

11/14/2018 - Liquidation of shares allotted under ESOP to be taxed as capital gains and not as a perquisite - 1 Section 17(2)(vi) of the Act - (PDF 710 KB)

11/13/2018 - Salary received in India by non-resident for services rendered outside India not taxable in India despite the absence of TRCSmt. Maya C Nair v. ITO ITA No.2407/ Bag/2018 dated 31 October 2018 - (PDF 729 KB)

11/06/2018 - GST notification updates on deduction of tax at source [TDS] - (PDF 738 KB)

11/01/2018 - The Bombay High Court decision on the application for stay of demand - Bhupendra Murji Shah v. DCIT (Writ Petition No. 2157 of 2018 and 2160 - (PDF 632 KB)

11/01/2018 - FTS is not taxable in India where services are for the purposes of making or earning any income from any source outside India - PCIT v. Motif India Infotech Pvt Ltd [2018-TII-60-HC-AHM-INTL] - (PDF 632 KB)

11/01/2018 - India signs its first APA renewal - CBDT Press release dated 01 August 2018 - (PDF 573 KB)

10/20/2018 - Prosecution proceedings are initiated for failure to furnish tax return within the time limit and for non-compliance with the notices issued by the tax department - 1 Karan Luthra v. ITO (CRL.M.C. 3385/2016 & Crl.M.A. 14338/2016, 1336/2017, dated 14 September 2018) – Taxsutra.com - (PDF 472 KB)

10/19/2018 - Time limit for claiming ITC in a statute does not violate the right guaranteed under the constitution – Supreme Court - ALD Automotive Pvt. Ltd [ 2018-VIL-28-SC] - (PDF 711 KB)

10/17/2018 - Disallowance of expenditure under Section 40(a)(i) of Income-tax Act are not applicable to India-Mauritius tax treaty - DDIT v. Unocol Bharat Ltd (ITA No. 1388/Del/2012) – Taxsutra.com - (PDF 642 KB)

10/16/2018 - Supply of complimentary tickets free of charge, subject to levy of GST – AAR, Punjab - M/s K.P.H. Dream Cricket Private Limited [2018-VIL-209-AAR] - (PDF 714 KB)

10/12/2018 - KPMG Tax Assemblage – June to September 2018 - (PDF 846 KB)

10/08/2018 - The assessing officer should consider the taxpayer's genuine hardship to allow a stay application - Samms Juke Box v. ACIT (Writ Petition No. 3735 of 2018) – Madras High Court – Taxsutra.com - (PDF 630 KB)

10/05/2018 - Liberalisation of external commercial borrowing norms for oil marketing companies - A.P.(DIR Series) Circular No. 10 dated 3 October 2018 (Source: https://www.rbi.org.in) - (PDF 622 KB)

10/04/2018 - CBDT final notification clarifying the nature of acquisitions of equity shares where the requirement of payment of STT shall not apply to avail concessional tax rate on long-term capital gains - 1 CBDT press release, dated 24 April 2018 (Source: https://www.incometaxindia.gov.in) - (PDF 507 KB)

10/03/2018 - Pharmacy run by hospital dispensing medicine to out-patients not covered under the ambit of health care services – AAR, Kerala - 1 Ernakulam Medical Centre Pvt. Ltd. [2018-VIL-179-AAR] - (PDF 563 KB)

09/28/2018 - Supply of solar power generating system as a whole is a composite supply – AAR Uttarakhand - Eapro Global Limited [2018-VIL-174-AAR] - (PDF 724 KB)

09/27/2018 - Excess premium received on issue of preference shares is not taxable as cash credit - ACIT v. Golden Line Studio Pvt Ltd (ITA No. 6146/Mum/2016) – Taxsutra.com - (PDF 572 KB)

09/25/2018 - Mumbai NCLT rejects scheme involving merger of Promoter Holding Company into Listed Company on account of the scheme not being in public interest, potential tax revenue loss and GAAR - Scheme of Amalgamation between Gabs Investments Private Limited and Ajanta Pharma Limited – CSP No. 995 of 2017 and CSP No. 996 of 2017 in CSA No, 791 & 792 of 2017 - (PDF 729 KB)

09/24/2018 - Assured return received by a non-resident on advance payment to a developer is taxable as interest under the India-U.K. tax treaty - Sh. Mohinder Singh Sanghera and Jatinder Singh Chatta v. ADIT (ITA Nos. 372 to 374/Chd/2016) – Taxsutra.com - (PDF 572 KB)

09/21/2018 - GST Notification update – Rate of tax collection at source has been notified - (PDF 706 KB)

09/20/2018 - Liberalisation of External Commercial Borrowing norms - (PDF 464 KB)

09/14/2018 - Companies (Prospectus and Allotment of Securities) Rules Rule 9A - Issue of securities in dematerialised form by unlisted public companies - (PDF 645 KB)

09/14/2018 - GST notification and circular updates – TDS and TCS made effective from 1 October 2018 and audit report format notified, GST on PSLC - (PDF 585 KB)

09/12/2018 - CBDT releases the second APA annual report. Indicates positive trends in new APA filings and growing preference towards Bilateral APAs in FY 2017-18 - CBDT released the First APA Annual Report (FY 2016-17) in April 2017 - (PDF 490 KB)

09/11/2018 - GST notification updates on GSTR 1 and GSTR-3B - (PDF 729 KB)

09/11/2018 - Deduction under Section 80-IA of the Income-tax Act is available on the interest on fixed deposits and compensation received for non-supply of spare parts - Tema Exchangers Manufactures Pvt Ltd v. ACIT (ITA No. 415 of 2004) – Taxsutra.com - (PDF 730 KB)

09/6/2018 - CENVAT Credit admissible on payments made for discharging CSR activities – CESTAT Mumbai - 1 Essel Propack Ltd. v. Commissioner of CGST [2018-VIL-621-CESTAT-MUM-ST] - (PDF 724 KB)

09/6/2018 - GST Circular updates on alternate procedure for recovery and clarify issued concerning refund application - (PDF 590 KB)

09/5/2018 - GST Notification updates – changes in GST Rules - (PDF 789 KB)

09/5/2018 -CBDT notification - Rules for determination of FMV for taxability of conversion of inventory into capital asset - By inserting clausdee (iv) in Section 28 of the Income-tax Act, 1961 - (PDF 628 KB)

09/3/2018 - CBDT issues draft notification amending Income-tax Rules and forms for PAN application - 1 Provisions relating to PAN - (PDF 470 KB)

08/31/2018 - Foreign companies may attract penalties and prosecution proceedings for non-filing of a tax return in India - 1 As per Section 139(1) of the Act - (PDF 573 KB)

08/30/2018 - Service Tax – Acceptance of revenue neutrality as a ground of defence, will make the entire scheme of RCM futile – CESTAT, Mumbai - BCCI v. Commissioner of Service Tax [2018-TIOL-2641-CESTAT-MUM] - (PDF 565 KB)

08/29/2018 - CBDT instruction on the conduct of assessment proceedings through ‘E-Proceedings’ facility - 1 Instruction No.8/2017, dated 29 September 2017 - (PDF 607 KB)

08/28/2018 - ICAI implementation guide on the amendments to Tax Audit Report (Form 3CD) - 1Notification No. 33/2018/F No.370142/9/2018-TPL, dated 20 July 2018 - (PDF 657 KB)

08/28/2018 - Transportation of goods for Transshipment - Conveyance details in part B of the e-way bill not required – Allahabad High Court - 1SBGC Logistics v. State of UP and four others [2018-TIOL-106-HC-ALL-GST] - (PDF 723 KB)

08/27/2018 - Deduction under Section 80-IC of the Income-tax Act availed for the first five years at 100 per cent would be available at 25 per cent only even if ‘substantial expansion' has been carried out in the subsequent year – Supreme Court - 1 CIT v. Classic Binding Industries (Civil Appeal Nos 7208 of 2018) – Taxsutra.com - (PDF 683 KB)

08/24/2018 - Service Tax – Assessee cannot take shelter under a faulty software programme – Madras High Court - Commissioner of CEST v. Sify Tehcnologies Ltd. [2018-TIOL-1856-HC-MAD-ST] - (PDF 740 KB)

08/21/2018 - Canada Tax Court’s decision on control and management - the Netherlands entity to be a resident of Canada - Landbouwbedrijf Backx B. V. v. Her Majesty the Queen 2018 TCC 142 - (PDF 734 KB)

08/21/2018 - CBDT draft notification – Amendments in the Income-tax Rules with respect to the issue of a certificate for no deduction/lower deduction or collection of tax at source -  F.No.370142/10/2018-TPL, dated 17 August 2018 - (PDF 745 KB)

08/19/2018 - CBDT circular - amendments to Tax Audit Report pertaining to GAAR and GST kept in abeyance till 31 March 2019 - 1Notification No.33/2018, dated 20 July 2018 - (PDF 469 KB)

08/17/2018 - Update in Customs circular – Simplification and rationalisation of processing of the AEO-T1 application - (PDF 683 KB)

08/16/2018 - Derivative Contracts - Conversion of electronic vault receipts representing diamonds to e-units (Securities) would constitute supply – AAR Karnataka - 1 Rajarathnam’s Jewels (Advance Ruling No. KAR ADRG 16/2018, dated 27 July 2018) - (PDF 675 KB)

08/14/2018 - Services by employees at corporate office to units located in other states shall be treated as supply – AAR Karnataka - 1 Columbia Asia Hospitals Private Limited (Advance Ruling No. KAR ADRG 15/2018, dated 27 July 2018) - (PDF 725 KB)

08/10/2018 - GST Notification updates on GSTR-1 and GSTR 3B - (PDF 712 KB)

08/10/2018 - Taxpayer’s methodology to set off and carry forward unabsorbed loss/depreciation for the purpose of MAT computation has been rejected - 1 Milan Intermediates LLP v. ITO (I.T.A. No. 209/Ahd/2018) – Taxsutra.com - (PDF 733 KB)

08/09/2018 - GST Amendment Bills introduced in Lok Sabha - (PDF 762 KB)

08/08/2018 - MAT credit is allowed inclusive of surcharge and education ces - 1 Consolidated Securities Ltd v. ACIT (ITA No. 3739/Del/2015) – Taxsutra.com - (PDF 725 KB)

08/07/2018 - GST Notifications - Exemption from levy of GST extended for supplies received from unregistered supplier and special procedure for completing GST migration - (PDF 710 KB)

08/07/2018 - Foreknowledge of the tax liability – an important factor in determining the applicability of the penalty - N & N Chopra Consultants Pvt. Ltd v. PCIT (SERTA 20/2018, C.M. APPL. No. 29038-29039/2018, dated 24 July 2018) - (PDF 563 KB)

08/06/2018 - The taxpayer does not constitute an installation PE under the India-Cyprus tax treaty - 1 Bellsea Ltd v. ADIT [ITA No 5759/Del/2011] – Taxsutra.com - (PDF 572 KB)

08/06/2018 - Exemption notification is to be interpreted strictly and therefore benefit of ambiguity in exemption notification cannot be claimed by the taxpayer – Supreme Court - 2 CC v. Dilip Kumar and Company & Ors (Civil Appeal No. 3327 of 2007) – Taxsutra.com - (PDF 701 KB)

08/03/2018 - No disallowance on year end provision of expenses for non-deduction of tax at source – Gujarat High Court - PCIT v. Sanghi Infrastructure Ltd. (R/TAX Appeal No. 404 of 2018) - www.gujarathighcourt.nic.in - (PDF 729 KB)

08/02/2018 - The tax officer has been directed to enquire into the applicability of deemed dividend provisions to buy-back of shares prior to the introduction of buy-back related specific provisions - Fidelity Business Services India Pvt Ltd v. ACIT (ITA No. 512/2017, dated 23 July 2018) – Taxsutra.com - (PDF 742 KB)

08/02/2018 - Discounts offered to be pre-determined and agreed upon in the agreement - Ultratech Cement Limited (Maharashtra AAR No. GST-ARA-34/2017-18/B-56, dated 27 June 2018) - (PDF 666 KB)

08/01/2018 -Retained issuance charges on lapsed reward points subject to levy of GST - Loyalty Solutions and Research Pvt. Ltd AAR No. HAR/HAAR/R/2017/18/4, dated 11 April 2018) - (PDF 658 KB)

07/30/2018 - Tax authorities may allow deposit of less than 20 per cent of demand to grant stay of demand on the basis of facts of each case – Supreme Court - PCIT v. LG Electronics India Pvt Ltd (Civil Appeal No. 6850 OF 2018) – Taxsutra.com - (PDF 725 KB)

07/28/2018 - The MFN clause under the India-Israel tax treaty is automatic and it applies prospectively - DCIT v. Sun Pharmaceutical Laboratories Ltd (ITA No. 1345, 1346 and 1347/Ahd/2016, dated 11 July 2018) - (PDF 568 KB)

07/28/2018 - CBDT issues Central Action Plan for 2018-19 (PDF 779 KB)

07/26/2018 - Sub-contracted sourcing services provided to associate concern abroad – Taxable Service (PDF 659 KB)

07/25/2018 - CBDT amends the Tax Audit Report (Form 3CD) - CBDT Notification No. 33/2018, dated 20 July 2018 - (PDF 661 KB)

07/23/2018 - Expenses and salary reimbursed by a foreign head office to its Indian liaising office not liable to GST - Habufa Meubelen B.V. (Advance Ruling No.RAJ/AAR/2018-19/05) - (PDF 641 KB)

07/20/2018 - Amalgamation of a Limited Liability Partnership into a Company under the provisions of the Companies Act 2013 - NCLT Order No. CP/123/CAA/2018  - (PDF 724 KB)

07/19/2018 - If certain benefits/limitations are given in a Protocol then it shall apply to the respective tax treaty because the Protocol is part of the tax treaty - Ericsson Telephone Corporation India AB v. DDIT (ITA No. 893/Del/2016) - Taxsutra.com - (PDF 733 KB)

07/17/2018 - Global payment solution provider company has a permanent establishment in India - MasterCard Asia Pacific Pte. Ltd. (AAR No. 1573 of 2014) - Taxsutra.com - (PDF 578 KB)

07/13/2018 - CBDT Circular – revision of monetary limits and certain conditions for the tax department to file appeals before the Income-tax Appellate Tribunal, High Courts and Supreme Court - CBDT Circular No. 3/2018, dated 11 July 2018 - (PDF 659 KB)

07/13/2018 - India signs first ever substantive revision to India-U.K. Bilateral APA (PDF 622 KB)

07/12/2018 - India Tax Konnect (PDF 724 KB)

07/06/2018 - Section 56(2)(viia) of the Income-tax Act is not applicable to a buy-back transaction - Section 56(2)(viia) of the Act – ‘where a firm or a company not being a company in which the public are substantially interested, receives, in any previous year, from any person or persons, on or after the 1 June 2010, any property, being shares of a (PDF 730 KB)

07/06/2018 - The Limitation of Relief provisions under Article 24 of the India-Singapore tax treaty do not apply to capital gain which is taxable in Singapore under Article 13(4) of the tax treaty - DCIT v. D.B. International (Asia) Ltd (ITA No. 992/Mum/2015) – Taxsutra.com (PDF 649 KB)

07/04/2018 - CBDT issues guidance on confidentiality and appropriate use of CBC Reports - Transfer Pricing Documentation and Country-by-Country Reporting – Action 13 : 2015 Final Report, October 2015 (PDF 853 KB)

06/28/2018 - CBDT issues a final notification on special transitional provisions for a foreign company said to be resident in India on account of POEM - Draft Notification, dated 15 June 2017 (PDF 505 KB)

06/27/2018 - Even though the taxpayer has not furnished TRC, the benefit of a tax treaty cannot be denied - Skaps Industries India Pvt Ltd v. ITO (ITA Nos. 478 and 479/Ahd/2018) – Taxsutra.com (PDF 736 KB)

06/20/2018 - Indian subsidiary does not constitute a PE of a foreign company in India under the India-Saudi Arabia tax treaty - (PDF 688 KB)

06/18/2018 - RBI and SEBI modifies the operational aspects of Foreign Portfolio Investors investments in Debt securities - (PDF 481 KB)

06/15/2018 - Amount received for providing training services and access to Centralised Reservation System is not chargeable as Fees for Technical Services under the India-Netherlands tax treaty - (PDF 661 KB)

06/15/2018 - KPMG India Tax Konnect – June 2018 - (PDF 781 KB)

06/15/2018 - Foreign Investment Reporting - Single Master Form - (PDF 477 KB)

06/14/2018 - Share premium received from the foreign holding companies is on account of capital transaction and is not an income chargeable to tax in India - 1 DCIT v. Finproject India (P.) Ltd. [2018] 93 taxmann.com 461 (Mum) - (PDF 688 KB)

06/13/2018 - The majority members of the special bench of the Delhi Tribunal hold that foreign telecom company does not have a PE in India. However, dissenting view by the third member - Nokia Networks OY (ITA No. 1963 & 1964/Del/2001) – Taxsutra.com - (PDF 717 KB)

06/12/2018 - AMP transaction does not exist in the absence of an agreement with the AE - Colgate Palmolive (India) Limited v. ACIT (ITA No. 6073/Mum/2014 and I.T.A. No. 2778/Mum/2011) - (PDF 559 KB)

06/07/2018 - Payment of marketing survey expenses made directly by AE on behalf of Indian taxpayer held to be at ALP  - BMW India Pvt Ltd v. ACIT (ITA No. 6160/Del./2014 - (PDF 733 KB)

06/06/2018 - Payments received by a foreign company for global reservation/other services are chargeable to tax in India under the Income-tax Act as well as under the India-Luxembourg tax treaty - 1FRS Hotel Group (LUX) S.A.R.L. [2018] AAR No. 1010 of 2010 taxsutra.com - (PDF 606 KB)

06/06/2018 - Issue of fresh equity shares is not a transfer of capital asset and therefore not taxable under the Income-tax Act - Supermax Personal Care Private Limited v. ACIT (ITA No.6107/Mum/2016) – Taxsutra.com - (PDF 426 KB)

06/01/2018 - Membership fees and contribution received by a foreign non-profit organisation are not liable to tax in India on the principle of mutuality - 1 International Zinc Association (AAR No. 1319 of 2012) – Taxindianinternational.com - (PDF 594 KB)

05/31/2018 - Payments received for the content delivery solutions for accelerating content and business processes online are not in the nature of FTS/royalty - 1Akamai Technologies Inc. (AAR No. 1107 of 2011) – Taxsutra.com - (PDF 692 KB)

05/31/2018 - AAR decision on the taxability of the loan related fees paid to the non-resident under the India-France tax treaty - Societe De Promotion Et De Participation Pour La Cooperation Economique [2018] AAR No. 1105 of 2011 (taxsutra.com) - (PDF 586 KB)

05/31/2018 - Payments for marketing of taxpayer’s BPO services in foreign countries are not taxable as FTS under the Income-tax Act as well as under the India-U.S. tax treaty - 1 Onprocess Technology India Pvt Ltd. v. DCIT (ITA No. 1047/Kol/2016) – Taxsutra.com - (PDF 438 KB)

05/30/2018 - DCF valuation method adopted by the taxpayer has been rejected to determine the taxability under Section 56(2)(viib) of the Income-tax Act - Agro Portfolio Private Limited v. ITO (ITA No. 2189/Del/2018) – Taxsutra.com - (PDF 454 KB)

05/29/2018 - In the absence of documentary evidence produced by the taxpayer, the tax officer has been directed to inquire into the genuineness and validity of the issue of shares to a sister concern under a family realignment without consideration - Gagan Infraenergy Ltd v. DCIT (ITA No. 1031/Del/2018) - http://itatonline.org - (PDF 423 KB)

05/29/2018 - Government of India declares 8.55 per cent interest rate on Employees’ Provident Funds Scheme for Financial Year 2017-18 - 1Circular issued by EPFO dated 25 May 2018 - (PDF 643 KB)

05/28/2018 - Prior to amendments introduced in the Rules, the weighted deduction under Section 35(2AB) cannot be disallowed based on DSIR certification - Cummins India Limited v. DCIT (ITA No. 309/Pun/2014) – Taxsutra.com - (PDF 685 KB)

05/26/2018 - The Delhi High Court restores the matter to the Tribunal to examine the taxability of the payments made under technical support and crew lease agreements under the Income-tax Act as well as under the India-Germany tax treaty - DIT v. Modiluft Ltd. (ITA 772/2004, ITA 15/2005 (Del) – Taxsutra.com - (PDF 583 KB)

05/25/2018 - The Indian company, having franchise rights from a foreign company, does not constitute agency PE of such foreign company in India under the India-U.S. tax treaty - DCIT v. Domino’s Pizza International Franchising Inc. [2018-TII-152-ITAT-MUM-INTL] -http://www.taxindiainternational.com  - (PDF 452 KB)

05/24/2018 - Supreme Court decision on the period to avail deduction under Section 80-IC of the Income-tax Act vis-à-vis other deductions availed by the taxpayer earlier - 1 Google India Private Limited v. JDIT (ITA No. 1190/Bang/2014, dated 11 May 2018) – Taxsutra.com - (PDF 683 KB)

05/23/2018 -Payment for marketing and distribution rights of Google Adwords Program is taxable as royalty - Google India Private Limited v. JDIT (ITA No. 1190/Bang/2014, dated 11 May 2018) – Taxsutra.com - (PDF 610 KB)

05/23/2018 - The Government of India issues notification on reducing the administrative charges under Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 - Notified in the official gazette on 15 March 2017 - (PDF 658 KB)

05/10/2018 - ‘Inland Container Depots’ are ‘Inland Ports’ and therefore eligible for benefit under Section 80-IA of the Income-tax Act – Supreme Court - CIT v. Container Corporation of India Ltd. (Civil Appeal No. 8900 of 2012 (SC) – Taxsutra.com - (PDF 731 KB)

05/09/2018 - Amendment to Section 40(a)(ia) with respect to ‘no disallowance if TDS has been deposited before the due date of return filing’ is retrospective in nature – Supreme Court - CIT v. Calcutta Export Company (Civil Appeal Nos. 4339-4340 of 2018)– Taxsutra.com - (PDF 441 KB)

05/08/2018 - Expenditure excluded from ‘export turnover’ shall also be excluded from ‘total turnover’ for computing deduction under Section 10A of the Income-tax Act – Supreme Court - CIT v. HCL Technologies (Civil Appeal No. 8489-8490 of 2013) – Taxsutra.com - (PDF 569 KB)

05/08/2018 - Reassessment proceedings cannot be initiated on the basis of change of opinion and under the same facts and circumstances which existed at the time of assessment – Supreme Court - 1 ITO v. Techspan India Private Ltd. & Anr. (Civil Appeal 2732 of 2007) (SC) – Taxsutra.com - (PDF 721 KB)

05/08/2018 - Waiver of loan taken for purchase of a capital asset is not taxable as business income under the Income-tax Act – Supreme CourtThe Commissioner v. Mahindra and Mahindra Ltd (Civil Appeal No. 6949-6950 of 2004) – Taxsutra.com - (PDF 758 KB)

05/08/2018 - Lump sum allowance paid without proof of expenses to assignees for boarding and lodging outside India is fully taxable - 1Section 10(14) of the Act read with Rule 2BB of the Income tax Rules, 1962 - (PDF 722 KB)

05/07/2018 - KPMG India Tax Konnect – May 2018 - (PDF 987 KB)

05/05/2018 - Lumpsum payment of royalty for use of trade mark is revenue in nature and therefore allowed as business expenditure - 1Hilton Roulunds Ltd v. CIT (ITA 325/2005) – Taxsutra.com - (PDF 785 KB)

05/05/2018 - CBDT draft notification prescribes the manner of determination of FMV of the inventory which has been converted into, or treated as, capital asset - Clause (via) to Section 28 of the Act - (PDF 667 KB)

05/04/2018 - Redemption of stock appreciation rights are not taxable as perquisite under the erstwhile law – Supreme Court - ACIT v. Bharat V. Patel (Civil Appeal No. 4380 of 2018) – Taxsutra.com - (PDF 745 KB)

04/30/2018 - Reserve Bank of India eases Minimum Maturity requirement for investments in Debt securities by Foreign Portfolio Investors - (PDF 481 KB)

04/17/2018 - DIPP notification on the procedure for ‘startups’ to avail tax benefit - Notification No. 180(E) dated 17 February 2017, Notification No. 501(E) dated 23 May 2017 - (PDF 828 KB)

04/16/2018 - Employees’ Provident Fund Organisation decides to keep the instruction on mandatory submission of online withdrawal claims in abeyance -Circular issued by EPFO, dated 13 April 2018 Accessed on 13 April 2018 - (PDF 543 KB)

04/13/2018 - CBDT notifies Income Tax Return forms for Assessment Year 2018-19 - Notification F. No.16/2018/ F.No.370142/1/2018-TPL, dated 3 April 2018 - (PDF 586 KB)

04/12/2018 - SEBI Clarification on Know Your Client Requirements for Foreign Portfolio Investors - (PDF 500 KB)

04/12/2018 - Clarification on investment limit for FPIs owned by foreign governments - (PDF 472 KB)

04/12/2018 - CBDT draft notification - proposed amendment to advance ruling rules and forms in line with BEPS Action Plan 5 - Substituted clause (b) of Section 245N of the Act - (PDF 362 KB)

04/12/2018 - KPMG India Tax Konnect – April 2018 - (PDF 721 KB)

04/10/2018 - Vessels engaged in seismic surveys on the high seas, in connection with the exploration of mineral oil/natural resources, constitute fixed place PE under the India-UAE tax treaty - SeaBird Exploration FZ LLC (AAR No. 1295 of 2012) – Taxsutra.com - (PDF 364 KB)

04/10/2018 - Government of India issues detailed visa guidelines - 4Global Initiative for Academic Networks - (PDF 568 KB)

04/10/2018 - Foreign Exchange Management (Cross Border Merger) Regulations, 2018 - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017 - (PDF 485 KB)

04/10/2018 - Fees received for domain name registration are taxable as royalty under Section 9(1)(vi) of the Income-tax Act - 1 Godaddy.com LLC v. ACIT (ITA No. 1878/Del/2017) – Taxsutra.com - (PDF 686 KB)

04/06/2018 - Payments by television channel entity to advertising agencies are ‘commission’ under Section 194H of the Income-tax Act and therefore liable for deduction of tax at source - The Director, Prasar Bharti v. CIT (Civil Appeal Nos. 3496-3496 of 2018) – Taxsutra.com - (PDF 675 KB)

04/06/2018 - Payment for intellectual property rights is taxable as royalty in India - Dorf Ketal Chemicals LLC v. DCIT (ITA No. 4819/Mum/2013) – Taxsutra.com - (PDF 554 KB)

04/05/2018 - Reimbursement of lease line charges having no income element is not taxable in India. Amendment in the Income-tax Act does not apply to the provisions of India-U.S. tax treaty - T3 Energy Services India Pvt. Ltd v. JCIT (ITA No. 826/Pun/2015) – Taxsutra.com - (PDF 457 KB)

04/04/2018 - Revision of Investment limit in Government Securities and State Development Loans for Foreign Portfolio Investor - (PDF 571 KB)

04/03/2018 - Services provided by the seconded employees of a foreign company to its subsidiary in India do not result in permanent establishment - Samsung Electronics Company Ltd v. DCIT [2018-TII-91-ITAT-DEL-INTL] - (PDF 576 KB)

04/03/2018 - KPMG Tax Assemblage – January to March 2018 - (PDF 658 KB)

04/02/2018 - The Government of India will contribute employer’s full Provident Fund contribution for certain new employees under the Pradhan Mantri Rojgar Protsahan Yojana - Press Release, Press Information Bureau, Government of India dated 28 March 2018, Accessed on 2 April 2018 - (PDF 407 KB)

04/02/2018 - The Government of India issues notification on enhancing maximum gratuity amount from the existing INR10 lakh to INR20 lakh under the Payment of Gratuity Act, 1972 - 1http://egazette.nic.in/WriteReadData/2018/184298.pdf - (PDF 544 KB)

03/23/2018 - OECD interim report on the tax challenges arising from digitalisation pursuant to BEPS Action Plan 1 - OECD/G20 BEPS Project – Tax Challenges Arising from Digitalisation – Interim Report 2018 www.oecd.org - (PDF 603 KB)

03/23/2018 - Indian APA accepts Customs Valuation as Arm’s Length Price (ALP) for Transfer Pricing (PDF 642 KB)

03/23/2018 - Highlights of the tax treaty between India and Hong Kong - One of which is the relevant assessment year - (PDF 621 KB)

03/20/2018 - Marketing and business development services are not in the nature of FTS and in the absence of a PE under the India-Singapore tax treaty, such services are not taxable in India - Fractal Analytics Pvt Ltd v. DCIT [2018-TII-81-ITAT-MUM-INTL] - (PDF 554 KB)

03/20/2018 - Disallowance under Section 14A of the Income-tax Act is applicable to expenditure in relation to exempt income from strategic investment/stock-in-trade - Supreme Court - 1 Maxopp Investment Ltd v. CIT (Civil Appeal Nos 104-109 of 2015) – Taxsutra.com - (PDF 496 KB)

03/17/2018 - Disallowance under Section 14A of the Income-tax Act is applicable to expenditure in relation to exempt income from strategic investment/stock-in-trade - Supreme Court - Maxopp Investment Ltd. CIT (Civil Appeal Nos 104-109 of 2015) - Taxsutra.com (PDF 440 KB)

03/16/2018 - Conversion of loan into equity as part restructuring is a genuine transaction and it does not violate provisions of Section 269T of the Income-tax Act and hence levy of penalty is to be deleted - Arkit Vincom Pvt. Ltd. v. ACIT (ITA No 2397/Kol/2016) - Taxsutra.com (PDF 667 KB)

03/15/2018 - Transfer pricing amendments to the Indian Budget proposals - (PDF 440 KB)

03/14/2018 - Proposed amendments to the Finance Bill, 2018 - To amend second proviso to Explanation 2A - (PDF 583 KB)

03/14/2018 - Once deduction under Section 10AA has been accepted in the first year, it cannot be withdrawn in the subsequent year by examining factors which were required to be seen in the first year - 1Macquarie Global Services Pvt. Ltd. v. DCIT (ITA No.:-6794/Del/2017) – Taxsutra.com - (PDF 561 KB)

03/12/2018 - Service of notice on the authorised representative of the taxpayer is deemed to be served on the taxpayer – Supreme Court - 1 ITO v. Dharam Narain (Civil Appeal No(s). 2262 of 2018) – Taxsutra.com - (PDF 696 KB)

03/09/2018 - KPMG India Tax Konnect – March 2018 (PDF 494 KB)

03/09/2018 - Sale of shares of the subsidiary to the second step down subsidiary is exempt under the provisions of Section 47(iv) of the Income-tax Act - 1 Emami Infrastructure Limited v. ITO (ITA No. 880/Kol/2014) – Taxsutra.com - (PDF 461 KB)

03/09/2018 - Carry forward and set off of losses are permissible even when 51 per cent of the voting power is beneficially held by the same persons during the year of loss as well as in the year of set-off - 1Wadhwa & Associates Realtors Private Ltd v. ACIT (ITA No. 967/M/2016) – Taxsutra.com - (PDF 460 KB)

03/09/2018 - Referral fees are not in the nature of FTS but business income and not taxable in India - DCIT v. Credit Suisse AG (ITA No.1247/Mum/2016) – Taxsutra.com - (PDF 460 KB)

03/07/2018 - Employees’ Provident Fund Organisation makes submission of claims through online mode mandatory if the settlement amount of the provident fund is above INR10 lakhs -1EPFO Circular-https://epfindia.gov.in/site_docs/PDFs/Circulars/Y2017-2018/WSU_OnlineModeSettlement_20514.pdf - (PDF 696 KB)

03/01/2018 - If the POEM of an enterprise is not situated in one of the contracting states but is situated in the third state, the benefit of the shipping and air transport article of the India-Mauritius tax treaty cannot be granted - 1 ADIT v. Bay Lines (Mauritius) [ITA No. 1181/Mum/2012] – Taxsutra.com - (PDF 617 KB)

02/27/2018 - Carry forward and set off of losses are not allowed in view of change in shareholding, however, it does not impact unabsorbed depreciation - 1DCIT v. Credila Financial Services Private Limited (ITA No.1491/Mum/2016) – Taxsutra.com (PDF 440 KB)

02/26/2018 - India signs first ever two APAs on Advertising, Marketing and Promotion (AMP) controversy - (PDF 491 KB)

02/23/2018 - In case of conflict between the tax rate prescribed in Section 206AA of the Income-tax Act and in a tax treaty, the tax treaty rate would apply - Danisco India Private Limited v. UOI (W.P. (C) 5908/2015) – Taxsutra.com - (PDF 369 KB)

02/22/2018 - Capital gains invested in house property along with furniture and fixtures eligible for deduction - Section 54 of the Act - (PDF 588 KB)

02/15/2018 - KPMG India Tax Konnect – February 2018 - (PDF 585 KB)

02/15/2018 - While making a payment for purchase of property from a non-resident, tax is to be deducted on actual sale consideration and not on stamp duty value - Shri Bhagwandas Nagla v. ITO (ITA No. 143/Hyd/2017) – Taxsutra.com - (PDF 356 KB)

02/15/2018 - Indian FRRO registration, visa extension, conversion, etc goes digital - 1 https://indianfrro.gov.in/eservices/ - (PDF 478 KB)

02/13/2018 - Rule 8D of the Income-tax Rules is prospective in nature and cannot be applied prior to AY 2008-09 – Supreme Court - CIT v. Eassar Teleholdings Ltd (Civil Appeal No.2165 of 2012) – Taxsutra.com - (PDF 559 KB)

02/13/2018 - CBDT issues instruction with respect to the conduct of assessment proceedings in scrutiny cases electronically - CBDT letter, dated 23 June 2017 - (PDF 438 KB)

02/12/2018 - AAR rulings dealing with the taxability of capital gains under the India-Mauritius tax treaty - AB Holdings, Mauritius-II (AAR No. 1129 of 2011) - http://aarrulings.in/ -  (PDF 604 KB)

02/09/2018 - No withholding of tax on salaries paid by an employer in India to its non-resident employees working outside India. Foreign Tax credit may be availed at withholding stage for resident employee - 1Section 5,6 and 9 of the Act - (PDF 561 KB)

02/05/2018 - CBDT issues FAQs on new taxation regime of long-term capital gains proposed in Finance Bill, 2018 - F. No. 370149/20/2018-TPL, dated 4 February 2018 - (PDF 482 KB)

02/02/2018 - Union Budget 2018 – Transfer pricing proposals relating to Country-by-Country Report regulations - (PDF 431 KB)

02/02/2018 - Union Budget 2018-19 - (PDF 1.3 MB)

01/31/2018 - The Supreme Court refers matter to the larger bench on the issue of applicability of deemed dividend provisions - National Travel Services v. CIT (Civil Appeal Nos. 2068-2071 of 2012) – Taxsutra.com - (PDF 554 KB)

01/29/2018 - India Economic Survey 2017-18 – Key Highlights - Booz & Company (ME) FZ-LLC v. DDIT (ITA No. 4063/Mum/2015(Assessment Year 2011-12) – Taxsutra.com - (PDF 569 KB)

01/25/2018 - No Service PE in India under the India-UAE tax treaty since the period of working of employees is less than nine months - 1Booz & Company (ME) FZ-LLC v. DDIT (ITA No. 4063/Mum/2015 (Assessment Year 2011-12) – Taxsutra.com -(PDF 683 KB)

01/23/2018 - Capital gains arising from indirect transfer of shares of an Indian company on sale of shares of German company are not taxable in India - GEA Refrigeration Technologies GmbH (AAR No. 1232 of 2012) – Taxsutra.com - (PDF 475 KB)

01/19/2018 - Interest on inter-corporate deposits which have become NPA is not taxable under the Income-tax Act – Supreme Court - CIT v. Vasisth Chay Vyapar Ltd (Civil Appeal No. 5811 of 2012) – Taxsutra.com -
(PDF 427 KB)

01/19/2018 - Payment for offshore supply of an equipment is not taxable in India, whereas, supervisory services for installation of such equipment are taxable in India - 1 Michelin Tamil Nadu Tyres Pvt Ltd (AAR No.1218 of 2011) - Taxsutra - (PDF 640 KB)

01/19/2018 - Space provided by an organiser to a foreign entity for rendering services relating to an event constitutes a PE in India - 1Production Resource Group (AAR No. 1330 of 2012, dated 8 November 2017) – Taxsutra.com - (PDF 484 KB)

01/12/2018 - Jaipur Tribunal’s decision on revenue recognition in case of real estate developer - Vastukar Township Pvt. Pvt. Ltd. v. DCIT (ITA No. 105/JP/2017) – Taxsutra.com - (PDF 604 KB)

01/12/2018 - Liberalisation of the Foreign Direct Investments Policy - (PDF 585 KB)

01/12/2018 - Ex-gratia from employer for settling industrial dispute is eligible for exemption under Section 10(10B) of the Income-tax Act - 2Section 10(10B) of the Act - (PDF 620 KB)

01/11/2018 - The amendment with respect to specified domestic transaction by the Finance Act, 2017 is deemed to be omitted from its inception - Texport Overseas Private Limited v. DCIT – [IT (TP)A No. 1722/Bang/2017] – Taxsutra.com - (PDF 676 KB)

01/11/2018 - KPMG Tax Assemblage - 2017 - (PDF 964 KB)

01/10/2018 - KPMG India Tax Konnect – January 2018 - (PDF 566 KB)

01/09/2018 - CBDT issues press release relaxing MAT provisions for the companies undergoing corporate insolvency resolution process - 1CBDT press release, dated 6 January 2018 - (PDF 497 KB)

01/09/2018 - Annual franchise fees paid to BCCI to operate and participate in IPL are allowed as revenue expenditure - Knight Riders Sports Private Limited v. ACIT (ITA No. 1307/Mum/2013) – Taxsutra.com - (PDF 435 KB)

01/09/2018 - KPMG Tax Highlights - (PDF 1.3 MB)

01/08/2018 - India signs first ever bilateral APA with the U.S.A. - 1Taxsutra article dated 5 January 2018 - (PDF 487 KB)

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