Share with your friends

India: Tax treatment of post-supply discounts, premium on share issuances

India: Tax treatment of post-supply discounts

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


Related content

  • Input tax credit not available for post-supply discounts: The Authority for Advance Ruling, Tamil Nadu ruled that an input tax credit (ITC) is available only to the extent of payments made by the recipient to the supplier. In other words, an input tax credit attributable to post-supply discounts is not available regardless of the fact that the supplier has discharged tax on the full value of the supply. Read a March 2019 report [PDF 543 KB]

  • Amount raised on issuance of shares at premium is taxable: The Supreme Court of India concluded that the amount raised by the taxpayer from various companies by means of shares issued at a premium is subject to income tax. The case is: NRA Iron & Steel Pvt Ltd. Read a March 2019 report [PDF 682 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