• Service: Tax, Global Mobility Services, International Tax
  • Type: Regulatory update
  • Date: 7/31/2014

India - Taxation of oil exploration income; software man-power transfers 

July 31: The KPMG member firm in India has prepared the following reports (click on the hyperlinks below to read more).
  • Royalties and/or fees for technical services of non-resident with PE in India, in connection with exploration of mineral oils - There has been an on-going issue as to whether income received by a non-resident conducting business in India through a permanent establishment (PE) or a fixed base in connection with the business of exploration of mineral oils for the period before a legislative amendment is taxable. The Delhi High Court and the Delhi Bench of the Income-tax Appellate Tribunal has addressed this issue in a few cases.

    Read a July 2014 report (PDF 399KB)

  • CBDT guidance on deduction for transfer of technical man-power in software industry - India’s direct tax authority (CBDT) issued guidance clarifying that the mere transfer or re-deployment of existing technical manpower from an existing unit to a new special economic zone (SEZ) unit in the first year of business will not be considered to be the splitting up or reconstruction of an existing business, provided that the number of technical manpower transferred does not exceed 20% of the total technical manpower actually engaged in developing software at any point of time in the given year in the new unit.

    Read a July 2014 report (PDF 268KB)

  • Proposed amendments to the Finance No. 2 Bill, 2014 - The Finance No. 2 Bill, 2014, was introduced by the Finance Minister in the Lok Sabha on 10 July 2014. Subsequently, on 26 July, amendments were tabled in the Lok Sabha by notice of amendments.

    Read a July 2014 report (PDF 316KB)

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