Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/30/2012

India - Taxation of payments under tax treaty with Germany 

October 30:   The KPMG member firm in India has prepared reports on the following developments (read the October 2012 reports by clicking on the hyperlinks provided below):
  • Revised pricing guidelines for share allotment to person residing outside India under “memorandum of association” of an Indian company: The Reserve Bank of India issued guidance clarifying that in situations when non-residents (including non-resident Indians) proposing to make investments in an Indian company in compliance with the provisions of the Companies Act, 1956, by way of subscription to a “memorandum of association,” such investments may be made at face value.

    Read an October 2012 report [PDF 191 KB]


  • Royalties and fees for technical services are taxable in year when received by German company, under India-Germany income tax treaty: The Bombay High Court affirmed a decision of the Income-tax Appellate Tribunal which found that under Article 12 of the India-Germany income tax treaty, an assessment of royalty or fees for technical services is to be made in the year in which the amounts are received (and not otherwise).

    The case is: Siemens Aktiengesellschaft. Read an October 2012 report [PDF 181 KB]



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