Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/7/2012

India - Foreign oil field service provider opportunities; service tax 

December 7:   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):
  • Foreign oil field service providers—opportunities and key tax considerations: India is one of the top four consumers of crude oil in the world. The rising demand for crude oil coupled with the need for reducing India’s import dependence has witnessed increased exploration and production spending in India. India’s move towards open acreage licensing and the government’s plan to launch the first round of shale gas bidding by end of next year may provide opportunities for foreign companies possessing the requisite knowledge.

    Read a 2012 report [PDF 423 KB]


  • High Court gives directions to income tax department on withholding tax mismatches: The Delhi High Court issued interim directions to the income-tax authorities in respect of harassment faced by several taxpayers due to errors in the “tax deducted at source” (withholding) system. The High interim direction is that “tax deducted at source” credits are not to be denied for small and non-material mismatches between Form 26AS (i.e., the income tax form on prepaid taxes) and the taxpayer’s income tax return.

    Read a December 2012 report [PDF 202 KB]


  • Equity savings scheme providing tax benefits to small first-time investors in specified investments: India’s central government issued a notice concerning the Rajiv Gandhi Equity Savings Scheme, 2012. Under a new tax provision, a one-time deduction from taxable income is available for qualifying investments made under this plan by resident individuals whose gross total income does not exceed INR 1 million for the relevant financial year.

    Read a December 2012 report [PDF 203 KB]


  • Reimbursement of expenses not subject to service tax: The Delhi High Court held that a reimbursement of expenses is not subject to India’s service tax.

    Read a December 2012 report [PDF 192 KB]



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