Foreign travel expenses as business expenditure: The Mumbai Bench of the Income-tax Appellate Tribunal held that foreign travel expenditures incurred to reward medical doctors for “patient-referrals” are not allowable as a deduction. The case is: Liva Healthcare Limited. Read KPMG September 2016 report [PDF 345 KB]
Transfer of shares of an Indian company under treaty with Mauritius The AAR determined that capital gains realized on the transfer of shares are not taxable in India under provisions of the India-Mauritius income tax treaty. The AAR found that the control and management of the company was not wholly in India. The case is: Mahindra-BT Investment… Read More »
Service fees paid to subsidiary for product promotion under treaty with Russia The Authority for Advance Ruling (AAR) determined that payments of service fees for product promotion services cannot be categorized as “fees for technical services” under the India-Russia income tax treaty or under the provisions India’s tax law. Accordingly, the payments are not subject to tax… Read More »
Review of India-South Korea income tax treaty: An income tax treaty between India and South Korea (signed in May 2015) is pending ratification and notification procedures for the treaty’s provisions to enter into force. Read KPMG September 2016 report [PDF 285 KB] that describes the provisions in the treaty.
AAR application: The Delhi High Court held that the Authority for Advance Rulings (AAR) cannot reject an AAR application notice because the “scrutiny notice” issued by the Assessing Officer did not address any specific question and did not disclose items identified on the income tax return. The case is: Sage Publications Ltd U.K. Read KPMG September 2016 report… Read More »
Capital gain tax treatment, 150-year call option: The Mumbai Bench of the Income-tax Appellate issued a decision in a case involving a transaction involving a Singapore resident that entered into a “call option” agreement with a Mauritian company. The call option was granted for a period of 150 years to the Mauritian company, allowing it to sell… Read More »
FAQs on tax dispute resolution: India’s tax authorities (CBDT) issued a set of “frequently asked questions” (FAQs) aimed at clarifying certain direct tax dispute resolution measures. Read KPMG September 2016 report [PDF 268] Related Post CBDT Clarifications on Direct Tax Dispute Resolution Scheme 2016
Model framework for guidelines on direct selling Model framework for guidelines on direct selling: The Direct Selling Guidelines 2016 offer guiding principles for state governments to consider regulating the businesses of direct selling and multi-level marketing. The guidelines aim to strengthen the existing regulatory rules. Read KPMG September 2016 report [PDF 297 KB] Related Post Model guidelines on… Read More »
CIRCULAR SEBI/HO/CDMRD/DRMP/CIR /2016/88 September 20, 2016 To, The Managing Directors/Chief Executve Officers, National Commodity Derivatives Exchanges Sir/Madam, Sub: Permission for trading in futures contracts and modification in contract specifications at exchange level 1. As per Section 131 (4) of the Finance Act, 2015 all rules, directions, guidelines, instructions, circulars, or any like instruments, made by… Read More »
CIRCULAR SEBI/HO/IMD/DF2/CIR/P/2016/89 September 20, 2016 All Mutual Funds/Asset Management Companies (AMCs)/ Trustee Companies/Boards of Trustees of Mutual Funds Sir/ Madam, Subject: Consolidated Account Statement A. Please refer to SEBI circular dated March 18, 2016. Clause A of the aforementioned circular on consolidated account statement has been partially modified and shall read as follows: “Consolidated Account… Read More »