Share with your friends

India: Securities transaction tax, equity shares; medicines subject to GST

India: Securities transaction tax, equity shares

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


Related content

  • “External commercial borrowings” policy for oil companies: The Reserve Bank of India issued a circular liberalising certain aspects of the “external commercial borrowings” policy for public sector oil marketing companies due to rising crude oil prices in international markets and the consequential increase in prices of petrol and diesel in India. Read an October 2018 report [PDF 622 KB
  • Securities transaction tax: The Central Board of Direct Taxes (CBDT) issued guidance clarifying when the securities transaction tax applies with respect to acquisitions of equity shares and the interaction with the concessional tax rate that applies with respect to long-term capital gains. Read an October 2018 report [PDF 605 KB]
  • Medicines supplied by hospital pharmacy to out-patients is taxable: The Authority for Advance Ruling, Kerala ruled that for goods and services tax (GST) purposes, medicines and related items provided on an in-patient basis by a hospital through its pharmacy were provided as part of the composite supply of health care treatment and were not taxable. However, the supply of medicines and items provided on an out-patient basis was taxable. Read an October 2018 report [PDF 563 KB]
  • Solar equipment falls under composite supply: The Authority for Advance Ruling, Uttarakhand ruled that for goods and services tax (GST) purposes, the supply of solar energy inverters, controllers, batteries, and panels would be covered under the term “solar power generating system;” therefore, the entire supply would fall under a “composite supply” subject to a GST rate of 5%—and not a “mixed supply” subject to a GST rate of 18%. Read an October 2018 report [PDF 723 KB]
  • Merger rejected, potential revenue loss cited: The Mumbai bench of National Company Law Tribunal (NCLT) rejected an arrangement involving the merger of a promoter holding company into a listed company, given certain objections raised by the income tax authorities that this treatment could lead to a potential revenue loss. The tax authorities cited the general anti-avoidance rule provisions. Read an October 2018 report [PDF 729 KB]

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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