Held The only issue to be resolved is whether the assessee would be entitled to claim deduction for the employees’ contribution made to PF after the due date prescribed under the PF Act, but before the due date prescribed for filing of income-tax return in the light of the provisions contained in section 36(1)(va) of… Read More »
Steps to Implement GST in Business There are several steps that businesses may consider for GST readiness and they include: Map the current business transactions and over lay the GST footprint to assess impact of new law Take impact mitigation measures by restructuring transaction flows and / or supply chain Redesign the processes in line… Read More »
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 »