India: Diamond certification services not taxable technical services under treaty with United States (tribunal decision)
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Not taxable technical services under treaty with United States
The Surat Bench of the Income-tax Appellate Tribunal held that payments for diamond testing and certification services provided by a U.S. company to the taxpayer are not taxable as “fees for technical services” under the India-United States income tax treaty.
The tribunal held that the U.S. company did not “make available” technology, experience, skill, know-how, or processes to the taxpayer by virtue of simply providing the taxpayer with a report of certification.
The case is: ITO v. Star Rays.
Read a March 2022 report [PDF 339 KB] prepared by the KPMG member firm in India
Foreign investment in life insurance company ahead of IPO
The government reviewed the existing foreign direct-investment policy for permitting foreign investment in an IPO-bound life insurance corporation with an aim to facilitate disinvestment of the country’s largest insurer and other modifications for consistency and to provide further clarity of the existing foreign direct-investment policy.
Accordingly, amendments have been made under the consolidated foreign direct-investment policy circular of 2020, and concern: (1) permitting foreign investment in the life insurance company; (2) new inclusion/modification of definitions; and (3) other modifications for consistency/clarity under the foreign direct-investment policy.
Read a March 2022 report [PDF 431 KB] prepared by the KPMG member firm in India
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