India: Combination regulations, employer remittances to provident fund

India: Combination regulations, employer remittances

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

Related content

  • Amendments to “combination regulations” under the Competition Act, 2002: The Competition Commission of India (CCI) originally issued regulations in May 2011, and then amended them from time to time. The CCI issued the fifth set of amendments to the original combination regulations effective 7 January 2016. Read a January 2016 report [PDF 357 KB]
  • No five-day grace period for remitting of monthly provident fund contributions: Under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) the employee and the employer must pay 12% of the salary towards the provident fund. Employers are required to pay their contributions and administrative charges within 15 days of the close of every month. There had been a five-day grace period for employers to remit their contributions. That grace period has been removed. Employers must now remit their contributions and administrative charges within 15 days of the close of every month. Read a January 2016 report [PDF 312 KB] 
  • Land on which building is under construction is subject to wealth tax: The Supreme Court of India held that land on which building construction is under progress is subject to wealth tax. The land would not be excluded from the scope of “urban land” if the building were still under construction. It would be excluded when the building construction is completed. The case is: Giridhar G. Yadalam. Read a January 2016 report [PDF 366 KB]
  • Interest income on application money in a separate bank account is taxable in year of share allotment: The Supreme Court of India held that interest income on application money kept in a separate bank account is taxable in the year when the entire allotment procedure is completed—and not in the year of public issue. The case is: Henkel Spic India Ltd. Read a January 2016 report [PDF 352 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

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.