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  • Service: Tax, International Corporate Tax, Mergers & Acquisitions, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 3/8/2013

India - No tax on share transfer in group reorganization 

March 8: The KPMG member firm in India has prepared reports on the following developments (read the February and March 2013 reports by clicking on the hyperlinks provided below):

  • Tax on transfer of shares of Indian company, without consideration, in a group reorganization: The Delhi High Court dismissed a petition filed by the tax department against an order of the Authority for Advance Ruling (AAR) which ruled that the transfer of shares of an Indian company without consideration, as part of a group reorganization, was not subject to tax in India.

    The case is: Goodyear Tire and Rubber Co. Read a March 2013 report [PDF 192 KB]


  • India and Portugal sign social security agreement: Representatives of the governments of India and Portugal signed a social security agreement, which will be added to the network of social security agreements that are effective between India and Belgium, Germany, Switzerland, France, Luxembourg, Netherlands, Hungary, Denmark, Czech Republic, Korea, Norway, Finland, Canada, Japan, Sweden, and Austria.

    Read a March 2013 report [PDF 316 KB]


  • No penalty when expatriate employees made voluntary disclosure, and had bona fide reason for underreporting salary: The Pune Bench of the Income -tax Appellate Tribunal disallowed a penalty levied on expatriate employees of a foreign company. The employees had originally filed their tax returns without reporting the overseas salary received by them from their home-country employer, but subsequently revised their tax returns to include this overseas income, after receiving a notice from the Indian tax authorities. The tribunal concluded that the penalty was not an automatic consequence of an addition to income, and was not to be levied when the taxpayer was able to provide a reasonable explanation (that was not found to be false by the tax authorities).

    Read a February 2013 report [PDF 198 KB]





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