• Service: Tax, Global Indirect Tax, International Tax
  • Type: Regulatory update
  • Date: 11/26/2013

India - Non-resident taxpayer liable for interest on advance tax 

November 26: The KPMG member firm in India prepared reports on the following developments (read the November 2013 reports by clicking on the hyperlinks provided below):
  • Non-resident taxpayer must pay interest on its liability for advance tax that was not remitted - The Delhi High Court held that a non-resident taxpayer is liable for interest on a default of paying advance tax because: (1) the non-resident taxpayer failed to report an Indian tax liability in its tax return; and (2) Indian payers did not withhold (deduct) tax on payments made to the non-resident taxpayer.

    The case is: Alcatel Lucent USA Inc. Read a November 2013 report [PDF 451 KB]

  • Stamp tax valuation provisions concerning real property held as stock-in-trade apply prospectively - The Mumbai Bench of the Income-tax Appellate Tribunal held that stamp tax valuation provisions do not apply on the sale of flats held as stock-in-trade prior to Assessment Year (AY) 2014-15 and not retrospectively.

    The case is: Neelkamal Realtors and Erectors India Pvt. Ltd. Read a November 2013 report [PDF 462 KB]

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