India: Proposed GST rates; shares as stock-in-trade | KPMG | GLOBAL

India: Proposed GST rates; shares as stock-in-trade; direct foreign investments

India: Proposed GST rates; shares as stock-in-trade

The KPMG member firm in India has prepared reports describing the following developments (read more at the hyperlinks provided below):


Related content

  • GST rate recommendations: A sub-committee formed to determine the possible tax rates under the goods and services tax (GST) submitted its report to the Finance Minister, providing a range of proposed GST rates to achieve a revenue-neutral rate. Read a December 2015 report [PDF 270 KB]
  • Identifying stock-in-trade: The Delhi High Court held that income on the sale of shares and renunciation of rights is business income—and not capital gains—because the taxpayer had treated the shares as stock-in-trade. Also, the closing stock was valued at the lower of cost or market value, and this treatment could only be accorded to shares held as stock-in-trade and not as an investment. The case is: Abhinandan Investment Ltd. Read a December 2015 report [PDF 335 KB]
  • Exempt capital gain, deemed dividend provisions: The Kolkata Bench of the Income-tax Appellate Tribunal held that exempt capital gain is to be excluded from the accumulated profits for purposes of deemed dividend provisions under section 2(22)(e) of the Income-tax Act, 1961. The case is: Sri Manoj Murarka. Read a December 2015 report [PDF 347 KB]
  • Direct foreign investment allowed in AIFs, REITs and InvITs: In a development that expected to benefit the private equity/venture capital industry, foreign investment would be permitted in AIFs, REITs and InvITs under the automatic route. The change would also allow foreign investors to invest directly in Indian pooling instruments rather than routing their investments through foreign pooling vehicles. Read a December 2015 report [PDF 293 KB]
  • Interest deduction for foreign education-related loan: The Pune Bench of the Income-tax Appellate Tribunal held that interest on an education loan availed for pursuing higher education outside India is eligible for a deduction under section 80E of the Act. The case is: Nitin Shantilal Muthiyan. Read a December 2015 report [PDF 362 KB]
  • Foreign direct investments: The Department of Industrial Policy and Promotion announced changes to the foreign direct investment policy. Read a December 2015 report [PDF 377 KB]

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. 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.

Connect with us


Request for proposal