Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 1/29/2013

India - Data supply, FII’s derivative transactions, seconded employee payments 

January 29: The KPMG member firm in India has prepared a report on the following development (read the January 2013 report by clicking on the hyperlink provided below):
  • Renovations on employer-provided accommodations not separately taxable to employee: The Delhi High Court found for the taxpayer and held that renovation expenditures paid by the employer on employer-provided accommodations are not taxed separately as income to the employee when the employer had already included the value of the accommodations in India in the employee’s taxable income.

    The case is: Scott R. Bayman. Read a January 2013 report [PDF 203 KB]


  • Income from collating, supplying information is business income, and not taxable absent a permanent establishment in India: The Mumbai Bench of the Income-tax Appellate Tribunal held that income from collating and supplying information was in the nature of supplying data and, therefore, was not royalty income. Further, absent a permanent establishment in India, the fees received by the taxpayer were not taxable under the India-Indonesia income tax treaty. Moreover, because the income is taxable as business income, it cannot be taxed under the residuary article dealing with “other income” of the tax treaty.

    The case is: P.T. McKinsey Indonesia. Read a January 2013 report [PDF 200 KB]


  • FII’s income from derivative transactions is capital gains, not business income: The Mumbai Bench of the Income -tax Appellate Tribunal held that gain / loss arising from derivative transactions of a foreign institutional investor (FII) is to be treated as capital gain / loss and not as business profit / loss.

    The case is: Platinum Investment Management Ltd a/c Platinum International Fund. Read a January 2013 report [PDF 174 KB]


  • Extension of time to file income tax returns electronically: India’s Director General of Income-tax (System) issued a notice extending the time period for filing ITR-V forms relating to income tax returns filed electronically (without attesting a digital signature certificate) for the Assessment Year (AY) 2012-13 and further extending of the time period for filing ITR-V forms for AY 2010-11 (filed during the period 1 April 2011 to 31 March 2012) and AY 2011-12 (filed on or after 1 April 2011).

    Read a January 2013 report [PDF 186 KB]


  • Interest on amounts borrowed for overseas investment not subject to tax withholding in India: The Ahmedabad Bench of the Income-tax Appellate held that interest paid by a resident to a non-resident in relation to amounts borrowed for investment in an overseas subsidiary neither accrues / arises nor is deemed to accrue or arise in India. Therefore, tax was not required to be withheld by the taxpayer from such interest payment.

    The case is: Adani Enterprises Ltd. Read a January 2013 report [PDF 201 KB]


  • No tax withholding on overseas allowance paid to seconded employees: The Bombay High Court held that since the seconded personnel were not employees of the taxpayer, the taxpayer was not required to withhold tax on the overseas allowances paid to the personnel. The taxpayer, however, was entitled to claim a tax credit for the taxes paid to a foreign country.

    The case is: Petroleum India International. Read a January 2013 report [PDF 197 KB]


©2013 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 us-kpmgwnt@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

TaxNewsFlash by region


TaxNewsFlash home

TaxNewsFlash-Asia Pacific by country


TaxNewsFlash-Asia Pacific home