Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/14/2012

India - Taxation of geophysical services; “group” is redefined 

December 14:   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):
  • Geophysical services are taxable under special provisions: The Delhi High Court held that income from geophysical services is taxable on a “deemed profit basis” under section 44BB of the Income-tax Act, 1961—and not as “fees for technical services” because the section 44BB provisions are more specific to the nature of services rendered.

    The case is: OHM Ltd. Read a December 2012 report [PDF 204 KB]


  • Definition of the term “group” under pending legislation: The Government of India introduced the Competition (Amendment) Bill, 2012, before the Lok Sabha on 7 December 2012. Among the proposed legislative changes are modifications of the definition of a “group.”

    Read a December 2012 report [PDF 191 KB]


  • Treatment of mortgage interest deductions / basis: The Chennai Bench of the Income-tax Appellate Tribunal held that interest paid with respect to a home- acquisition loan may be used in computing the capital gains arising on the taxpayer’s sale of the house, despite that such interest had already been deducted with respect to computing income from the property. As the tribunal noted, the taxpayer was not prevented from claiming interest of loan as part of the “cost of acquisition” in determining the taxable capital gains.

    The case is: Shri C Ramabrahmam. Read a December 2012 report [PDF 197 KB]


  • Employee Provident Fund Organization (EPFO) guidelines on the audit process and meaning of basic wages: The EPFO issued guidelines to provident fund officers on audit proceedings under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, and clarified the definition of “basic wages” for determining provident fund contributions.

    Read a December 2012 report [PDF 381 KB]



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