• Service: Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/8/2014

India - Feasibility-related studies not taxable under UK tax treaty 

July 8:  The KPMG member firm in India has prepared the following reports (click on the hyperlinks below to read more).
  • Studies for feasibility of developing a port not taxable as “fees for technical services” under tax treaty with UK - The Ahmedabad Bench of the Income-tax Appellate Tribunal held that payments for morphological, sedimentation, navigation, and mooring studies, as conducted by a UK-based company in determining the feasibility of developing a port in India, do not “make available” technical knowledge, skills, etc., and therefore, are not subject to tax as “fees for technical services” under the India-United Kingdom income tax treaty.

    The case is: Dholera Port Ltd. and Adani Port-Infrastructure Pvt. Ltd. Read a July 2014 report(PDF 445KB)

  • No interest if specific section not listed in assessment order - The Allahabad High Court held that interest on an underpayment of tax cannot be imposed under sections 234A, 234B or 234C of the Income-tax Act, 1961, if the Assessing Officer did not list the specific sections for imposing interest in the assessment order.

    The case is: Oswal Exports. Read a July 2014 report(PDF 436KB)

  • Share transfer to settle family dispute not a gift - The Ahmedabad Bench of the Income-tax Appellate Tribunal held that a transfer of shares pursuant to an arrangement, to settle a family dispute, is not a gift.

    The case is: Bilakhia Holdings P. Ltd. Read a July 2014 report(PDF 446KB)

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