• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 10/3/2013

India - Payments for services under Singapore tax treaty 

October 3: The KPMG member firm in India prepared reports on the following developments (read the September 2013 reports by clicking on the hyperlinks provided below):
  • Payments to a foreign university for teaching services not taxable as “fees for technical services” under India-Singapore income tax treaty - India’s Authority for Advance Rulings (AAR) concluded that: (1) payments made to a foreign university for teaching services rendered under the terms of an agreement were not “fees for technical services’” because the payments qualified the exclusion clause of Article 12(5)(c) of the India-Singapore income tax treaty; and (2) the foreign university did not have a permanent establishment in India under Article 5 of the treaty in relation to the activity of conducting in-class teachings or through a tele-presence in India. Thus, the AAR concluded that the payments made to the foreign university were not subject to tax in India, and there were no withholding tax implications.

    The case is: Eruditus Education Private Ltd. Read a September 2013 report [PDF 479 KB]

  • India’s Supreme Court address sales tax on pre-construction sales of flats - The Supreme Court of India concluded that an agreement with the builder / promoter of apartment flats, before the completion of construction, constituted a works contract, and hence, was subject to value added tax / sales tax.

    The case is: Larsen and Toubro. Read a September 2013 report [PDF 423 KB]

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