Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 11/12/2012

India - Protocol to UK treaty; sales of carbon credits 

November 12: The KPMG member firm in India has prepared reports on the following developments (read the November 2012 reports by clicking on the hyperlinks provided below):
  • Protocol amending the India-United Kingdom income tax treaty: A Protocol to the India-United Kingdom income tax treaty (1993) amends various provisions of the 1993 treaty, including provisions concerning partnerships, a limitation-on-benefits clause, and the taxation of dividends.

    Read a November 2012 report [PDF 204 KB]]


  • Amounts realized on transfer of carbon credits are capital receipts, but because there is no element of profit, are not taxable: The Hyderabad Bench of the Income-tax Appellate Tribunal held that the “carbon credit” was in the nature of “an entitlement” received to improve the world environment and was an accretion of capital; hence, income realized on sale of carbon credits is a capital receipt. Because the sale consideration had no element of profit, it was not subject to tax as income.

    The case is: My Home Power Ltd. Read a November 2012 report [PDF 208 KB]]


  • Tests for determining whether income from sale of shares constitutes capital gains or business income: The Delhi High Court examined the various tests discussed in prior judgments and administrative guidance to determine whether income derived from the sale of shares is taxable as capital gains or business income.

    The case is: Vinal Mittal. Read a November 2012 report [PDF 204 KB]]


  • Extended time for completing return e-filing process for certain years: The Director General of Income-tax (System) announced an extension of the time for sending ITR-V forms relating to income tax returns filed electronically (without attesting a digital signature certificate) for the Assessment Year (AY) 2010-11 (filed during the period 1 April 2011 to 31 March 2012) and AY 2011-12 (filed on or after 1 April 2011).

    Read a November 2012 report [PDF 191 KB]


  • Tax paid by the employer on behalf of employees, being a non-monetary perquisite, qualifies for exemption from multiple gross-up: The Uttarakhand High Court held that income tax paid by an employer on behalf of its employees is a non-monetary perquisite for the employees and thus qualifies for an exemption available for taxes paid by the employer on non-monetary perquisites provided to employees, with other conditions being satisfied. In the absence of the exemption, the tax paid by the employer would have been subject to “gross-up” (i.e., tax on tax).

    The case is: Sedco Forex International Drilling Inc. Read a November 2012 report [PDF 196 KB]


©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to go-fmtaxnewsflash@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.
 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now

Contact us

TaxNewsFlash by region


TaxNewsFlash home

TaxNewsFlash-Asia Pacific by country


TaxNewsFlash-Asia Pacific home