• Service: Tax, Global Indirect Tax, International Tax
  • Type: Regulatory update
  • Date: 5/9/2014

India - Royalties not linked to PE are not taxable 

May 9:  The KPMG member firm in India has prepared reports on the following developments (read the May 2014 reports by clicking on the hyperlinks provided below):
  • Royalty income not taxable in India when no economic link between payment of royalties and taxpayer’s PE in India - The Bombay High Court held that a payment by the taxpayer for rights to telecast cricket matches is not taxable in India because there was no economic link between that payment and taxpayer’s permanent establishment (PE) in India. The liability for the payment was incurred by the taxpayer in connection with its broadcasting operations in Singapore, and had no connection with the marketing activities conducted through its PE in India.

    The case is: Set Satellite (Singapore) Pte Ltd. Read a May 2014 report [PDF 442 KB]

  • FAQs on value added tax (VAT) for Andhra Pradesh state reorganisation - With imminent bifurcation of the state of Andhra Pradesh into two states (Telangana and the residuary state of Andhra Pradesh or Seemandhra) to be effective 2 June 2014, a list of additional frequently asked questions (FAQs) was released by the tax authorities.

    Read a May 2014 report [PDF 400 KB]

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