Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 11/2/2012

India - Draft standards for computing taxable income 

November 2:   The KPMG member firm in India has prepared reports on the following developments (read the October 2012 reports by clicking on the hyperlinks provided below):
  • Draft tax accounting standards: Ministry of Finance issued a final report of a committee formed by the Central Board of Direct Taxes to create accounting standards under the Income-tax Act, 1961. The report contains the final recommendations and drafts of 14 tax accounting standards that, if finalized, would apply to the computation of taxable income. Comments are due by 26 November 2012.

    Read an October 2012 report [PDF1 MB]


  • Head office expenditure incurred for general administration cannot be apportioned to the individual units before computing deductions: The Madras High Court held that common head office administrative expenditures were necessary for running the business and thus cannot be apportioned to the individual units before computing deductions under sections 10B, 80HH and 80-I of the Income-tax Act, 1961.

    The case is: Hindustan Lever Ltd. Read an October 2012 report [PDF 197 KB]



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