Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/14/2012

India - Treatment of royalty when no tax withheld at source 

September 14:   The KPMG member firm in India has prepared a report on the following development (read the September 2012 report, by clicking on the hyperlink provided below):
  • Recent change to royalty provision does not affect deduction when there was no corresponding change to tax withholding statutory rules: The Mumbai Bench of the Income-tax Appellate Tribunal—in a case concerning the deduction of a payment made for the purchase of software from Indian residents for which tax was not withheld at source—held that a recent statutory amendment to the royalty-related provisions under section 9(1)(vi) of the Income-tax Act, 1961, is not relevant because a corresponding amendment was not also made to the withholding tax rules under section 40(a)(ia).

    The case is: Sonata Information Technology Ltd. Read a September 2012 report [PDF 201 KB]



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