• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 6/24/2014

India - Budget day is 10 July; other tax developments 

June 24:  The new government in India, elected following the general election of April / May 2014, will present its budget for 2014-15 on 10 July 2014.

Other tax developments

The KPMG member firm in India has prepared the following June 2014 reports (click on the hyperlinks below to read more).

  • Payments for BSP link services not “fees for technical services” under India-France tax treaty - The Mumbai Bench of the Income-tax Appellate Tribunal held that the restricted scope with respect to “fees for technical services” under income tax treaties between India and the United States and India and Portugal also applies to the India-France income tax treaty, by virtue of the “most favoured nation” clause in that treaty. Accordingly, since the payments made for BSP link services are not making available technical knowledge, skills, or similar services, these are not taxable as fees for technical services under the India-France income tax treaty.

    The case is: IATA BSP India. Read a June 2014 report [PDF 488 KB]

  • Corporate social responsibility under the Companies Act, 2013 - The Ministry of Corporate Affairs issued guidance to clarify provisions dealing with corporate social responsibility and to illustrate what are qualifying activities.

    Read a June 2014 report [PDF 414 KB]

  • Taxpayer is entitled to compensation for government’s delay in paying interest on refund of tax - The Andhra Pradesh High Court held that the taxpayer is eligible to receive compensation for a delay in payment of interest due on a tax refund.

    The case is: The Sirpur Paper Mills Ltd. Read a June 2014 report [PDF 439 KB]

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