Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/7/2012

India - Capital gains under tax treaties with Mauritius, Singapore 

August 7:   The KPMG member firm in India has prepared reports on the following developments (read these August 2012 reports, by clicking on the hyperlinks provided below):
  • Capital gains from transfer of Indian company’s shares by Mauritian company are not taxable under India-Mauritius tax treaty; legal ownership prevails over beneficial ownership: India’s Authority for Advance Rulings held that capital gains on a Mauritian company’s sales of shares: (1) of an Indian company to Cypriot company; and (2) of a U.S. company (which in turn held shares in an Indian company) to another U.S. company are not taxable in India under the India Mauritius income tax treaty because the legal ownership, as well as control and management, rest with the Mauritian company.

    The case is: Moody’s Analytics Inc. Read an August 2012 report [PDF 276 KB]


  • Gains on cancellation of foreign exchange forward contract are “capital gains” and not as “income from other sources:” The Mumbai Bench of the Income-tax Appellate Tribunal held that gains arising on the cancellation of a foreign exchange forward contract are treated as “capital gains” under Article 13(4) of the India-Singapore income tax treaty, and not “income from other sources.”

    The case is: Credit Suisse (Singapore) Ltd. Read an August 2012 report [PDF 199 KB]



©2012 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 go-fmtaxnewsflash@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

Contact us