Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/20/2012

India - Amortization of client list 

December 20:   The KPMG member firm in India has prepared reports on the following developments (read the December 2012 reports by clicking on the hyperlinks provided below):
  • Amount paid in acquiring clientele list concerns “intangible asset” eligible for amortization: The Mumbai Bench of the Income-tax Appellate Tribunal held that the purchase of the clientele business is a right that can be used as a tool to carry on the business and that the consideration paid for acquiring the clientele list concerns an “intangible asset” that is eligible for “depreciation” because it is a tool of the trade that facilitates the ability of the taxpayer to carry on the business.

    The case is: India Capital Markets P Ltd. Read a December 2012 report [PDF 205 KB]


  • Salary reduced by hypothetical tax as a deduction from taxable income: The Bombay High Court confirmed the availability of a reduction in respect of the “hypothetical tax” from the taxpayer’s salary. The High Court held that only the differential tax actually borne by the employer after the adjustment of hypothetical tax may be treated as an addition to taxable income.

    The case is: Jaydev H. Raja. Read a December 2012 report [PDF 196 KB]


  • Provident fund guidance defining basic wages: India’s Employees’ Provident Fund Organisation (EPFO) issued guidelines to provident fund officers on the definition of “basic wages” for purposes of determining provident fund contributions. The guidelines also provided clarifications on audit proceedings under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

    Read a December 2012 report [PDF 310 KB]


  • India and Japan sign social security agreement: India and Japan signed a social security totalisation agreement. This agreement joins India’s network of social security agreements with Belgium, Germany, Switzerland, France, Luxembourg, Netherlands, Hungary, Denmark, Czech Republic, Korea, Norway, Finland, Canada, and Sweden.

    Read a December 2012 report [PDF 316 KB]



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