India: Technology services provided from Hong Kong | KPMG Global
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India: Technology services provided from Hong Kong; securities as stock-in-trade

India: Technology services provided from Hong Kong

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


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  • Payment for technology services not taxable as “royalty” or “fees for technical services”: The Mumbai Bench of the Income-tax Appellate Tribunal held that a payment for technology services (data centre, infrastructure, connectivity, and application technology) provided by the taxpayer from Hong Kong is not taxable as “royalty” income or as “fees for technical services.” The taxpayer provided a standard facility for data processing, without any human intervention. The case is: Atos Information Technology HK Ltd. Read a February 2017 report (PDF 386 KB)
  • No disallowance of expenditure for securities held as stock-in-trade: The Punjab and Haryana High Court and the Calcutta High Court each held that because securities were held as stock-in-trade, there was to be no disallowance of expenditure. The cases are: State Bank of Patiala and G K K Capital Markets (P) Limited. Read a February 2017 report [PDF 337 KB]
  • Assessing Officer’s action when not satisfied with correctness of taxpayer’s claim: The Punjab and Haryana High Court held that an Assessing Officer may resort to asserting Rule 8D, but only if the Assessing Officer is not satisfied with the correctness of the taxpayer’s claim in respect of the expenditure in relation to the income that does not form part of total income. The case is: Punjab Tractors Ltd. Read a February 2017 report [PDF 390 KB]

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