India: Process for determining tax, payments made to non-residents; bank’s intangible asset eligible for amortisation

India: Process for determining tax

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

  • Process for applying for certificate, determining amounts subject to tax in India on payments made to non-residents: The Central Board of Direct Taxes (CBDT) issued guidance introducing a rule (29BA) for submitting an application for a certificate that determines the amounts or portions of amounts (other than salary) that are subject to tax in India on payments made to non-residents. The CBDT also introduced Form No. 15E to be used in making such applications for a certificate. The Finance (No.2) Act, 2019 included measures allowing the CBDT to prescribe the form and manner for filing an application with the Assessing Officer for a certificate to determine the appropriate portion or sum paid to a non-resident that is subject to tax in India. Read a March 2021 report [PDF 244 KB]

  • Assets of bank on acquisition representing intangible asset, eligible for amortisation: The Mumbai Bench of the Income-tax Appellate Tribunal held that the excess amount of liabilities over assets of a bank on its acquisition represents an intangible asset eligible for depreciation (that is, amortisation) under section 32(1)(ii) of the Income-tax Act, 1961. The case is: NKGSB Co-operative Bank Ltd. Read a March 2021 report [PDF 277 KB]

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