• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 10/31/2013

India - Amended returns to claim additional deductions; ESOP expenditures 

October 31: The KPMG member firm in India prepared reports on the following developments (read the October 2013 reports by clicking on the hyperlinks provided below):
  • Taxpayer may file amended return with claim for additional deductions during assessment proceedings - The Karnataka High Court held that a taxpayer can make an additional claim for deductions by filing an amended income tax return during the course of assessment proceedings and can request “condonation of delay” with the Central Board of Direct Taxes, which will be considered by the Assessing Officer during the assessment proceedings.

    The case is: Axa Business Services Pvt Ltd. Read an October 2013 report [PDF 435 KB]

  • Rules for participating in export amnesty program - India’s Directorate General of Foreign Trade on 25 October 2013 issued guidance (Circular No 8/2009-2014) containing procedures to be followed by an exporter seeking to benefit under an amnesty program, to allow exporters (whose period of export reporting requirements has expired) to regularize defaults in export requirements.

    Read an October 2013 report (PDF 387KB)

  • Issuance of ESOP shares of foreign parent company allowed as revenue expenditure - The Bangalore Bench of the Income-tax Appellate Tribunal held that an expenditure incurred by an Indian company on the issuance of shares of its foreign parent company under its employees stock option plan (ESOP) is allowed as revenue expenditure. The tribunal observed that the expenditure was not capital in nature because it was incurred to compensate employees for their continuity of service.

    The case is: Novo Nordisk India Pvt. Ltd. Read an October 2013 report [PDF 440 KB]

  • Service tax exemption for food, beverages provided in factory canteens - Guidance (Notification No. 14/2013-ST (22 October 2013)) provides an exemption for services provided in relation to serving of food and beverages by a canteen maintained in taxpayer’s factory.

    Read an October 2013 report [PDF 267 KB]

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