India: Satellite services rendered in India; tonnage tax

India: Satellite services rendered in India

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

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  • Services rendered in India: The Chennai Bench of the Income-tax Appellate Tribunal held that a taxpayer—providing satellite capacity and related services to Indian customers by means of communication system monitoring equipment owned by a related party in India—was rendering services in India. The case is: Intelsat Global Sales and Marketing Ltd. Read a July 2016 report [PDF 311 KB]
  • No tax for cancelled trademark: The Hyderabad Bench of the Income-tax Appellate Tribunal held that a payment received by the taxpayer for restraining the use of the trademark that was cancelled and no longer available for use (it had ceased to exist is a capital receipt) was not subject to tax. The case is: Orient Blackswan Private Ltd. Read a July 2016 report [PDF 338 KB]
  • “Slot charter” arrangements eligible for tonnage tax treatment: The Supreme Court of India held that benefits under the tonnage tax scheme is also available to the income from the “slot charter” arrangements. The case is: Trans Asian Shipping Services (P) Ltd. Read a July 2016 report [PDF 321 KB]
  • Retention bonus as business expenditure: The Delhi Bench of the Income-tax Appellate Tribunal held that a retention bonus paid by the taxpayer to retain employees of a transferred company were allowable as a business expenditure of the taxpayer. The case is: SAIC India Private Ltd. Read a July 2016 report [PDF 282 KB]
  • Corporate social responsibility expenditure is business expenditure: The Raipur Bench of the Income-tax Appellate Tribunal held that the voluntary nature of corporate social responsibility payments are expenditures that are allowable as a business expenditure. The case is: Jindal Power Limited. Read a July 2016 report [PDF 323 KB]

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