India: Share buy-backs; oil and gas exploration reimbursements

India: Share buy-backs; oil and gas exploration

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

Related content

  • Determining distributed income with respect to buy-back of shares: The Central Board of Direct Taxes (CBDT) issued draft rules concerning the method for determining the amount received by companies under different circumstances when shares have been issued. Read a July 2016 report [PDF 300 KB]
  • Mobilisation / demobilisation of vessels used in exploration for oil and gas: The Delhi Bench of the Income-tax Appellate Tribunal held that reimbursements paid by customers for the mobilisation / demobilisation of vessels used by the taxpayer in exploration for oil and gas and attributable to the distance travelled outside India are taxable. The case is: Western Geco International Ltd. Read a July 2016 report [PDF 354 KB]
  • Paperless PAN and TAN application process: The CBDT announced a digital signature certificate-based application procedure to companies to apply via portals of Permanent Account Number (PAN) service providers. Under the new process, PAN and TAN will be assigned within one day after completion of a valid on-line application. Read a July 2016 report [PDF 249 KB]
  • Social security agreement (SSA) with Japan: The SSA between India and Japan (signed in November 2012) has entered into force, and is effective 1 October 2016. Read a July 2016 report [PDF 327 KB]
  • Cross-charge transactions under GST: An update on the draft GST law concerns: (1) the taxability of typical transactions between a head office and its branch offices; and (2) credit optimisation in situations of centralised billing from the head office when the branch offices are located at multiple locations and credit of common expenses incurred by the head office which pertain to different branch offices. Read a July 2016 report [PDF 467 KB]

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