Global

Details

  • Service: Tax, International Executive 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)



©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


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.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
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.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now