India: Draft GST law; treaty implication of marketing services

India: Draft GST law; treaty implications

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

Related content

  • Demand, recovery under the model GST law: A draft version of a model GST law has been released for public consideration. Included in the draft GST law are provisions dealing with “demand and recovery”—for example, situations when the indirect tax has been collected but not deposited with the government. Read a July 2016 report [PDF 460 KB]
  • Marketing services for overseas expansion of business; not “fees for technical services” under treaties: The Kolkata Tribunal held that payments made for marketing support services and for the expansion of business abroad do not constitute “fees for technical services” under the provisions of the India-United Kingdom income tax treaty or the India-Singapore income tax treaty. The case is: Batlivala & Karani Securities (India) (P.) Ltd. Read a July 2016 report [PDF 286 KB]
  • Deductions for infrastructure projects: The Madras High Court allowed the taxpayer’s claimed deduction under section 80-IA(4)(i)—as allowed for infrastructure projects—in a situation when the taxpayer maintained a warehousing complex as a container freight station. The case is: AL Logistics P Ltd. Read a July 2016 report [PDF 331 KB]
  • Guidelines for selecting returns for “compulsory scrutiny” during 2016-17: The Central Board of Direct Taxes issued guidelines concerning the procedure and criteria for the manual selection of tax returns for “compulsory scrutiny” during the financial year 2016-17. Read a July 2016 report [PDF 280 KB]
  • Tax withholding (deduction) at source: The Calcutta High Court held that the taxpayer was not liable to withhold tax at source on freight charges reimbursed to the supplier because the party responsible for withholding tax at source on freight charges was the supplier in making its payment to the transporter. The case is: Hightension Switchgears Private Limited. Read a July 2016 report [PDF 328 KB]
  • Tie-breaker provisions of India-Sri Lanka tax treaty: The Mumbai Bench of the Income-tax Appellate Tribunal held that the taxpayer was a resident of India based on the tie-breaker provisions of the India-Sri Lanka income tax treaty. The case is: Shalini Seekond. Read a July 2016 report [PDF 358 KB]

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