India: Bad debt claim as business loss; digital content depreciation

India: Bad debt claim as business loss; digital content

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

1000

Related content

  • Bad debt claim: The Delhi Bench of the Income-tax Appellate Tribunal held that a bad debt claimed on account of the sale of investment was allowed as a business loss even though the profit from a similar transaction was offered under the heading “capital gains” during earlier years. The case is: Anant Raj Ltd. Read a May 2020 report [PDF 189 KB]

  • Electronic modes of payment: The Central Board of Direct Taxes (CBDT) introduced a new rule that prescribes the electronic format for tax payments under section 269SU—which provides that every person having a business turnover of more than INR 50 crore must provide facilities for accepting payments through electronic modes.  Read a May 2020 report [PDF 159 KB]

  • Depreciation of digital content as copyrighted intangible asset: The Chennai Bench of the Income-tax Appellate Tribunal held that digital content developed by an animation company was a copyrighted intangible asset and not computer software. Therefore, the taxpayer was eligible for depreciation at a rate of 25% instead of 60%. The case is: Pentamedia Graphics Ltd. Read a May 2020 report [PDF 309 KB]

  • Principal component of lease rent paid not revenue expenditure: The Chandigarh Bench of the Income-tax Appellate Tribunal held that the principal component of lease rental paid for set-top boxes was not allowable as a revenue expenditure. However, the higher depreciation at a rate of 60% was allowed for the set-top boxes. The case is: Fastway Transmission (P) Ltd. Read a May 2020 report [PDF 198 KB]

  • Shares received as part of family arrangement: The Delhi Bench of the Income-tax Appellate Tribunal held that shares received as a part of a family arrangement was not a sham or colourable transaction to avoid tax. The case is: Glebe Trading Pvt Ltd. Read a May 2020 report [PDF 306 KB]

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. 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 information contained 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