India: Depreciation of goodwill; curative provision applies retroactively; lump-sum payments

India: Depreciation of goodwill; curative provision

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

1000

Related content

  • Depreciation of goodwill: The Bangalore Bench of the Income-tax Tribunal held that the taxpayer cannot claim depreciation on assets acquired through an amalgamation, including goodwill, more than the depreciation that would be allowable to the amalgamating company. The case is: United Breweries Ltd. Read an October 2016 report [PDF 315 KB]
  • Retroactive effect of change found to be “curative”: The Ahmedabad Bench of the Income-tax Appellate Tribunal held that an amendment made to a provision of the tax law concerning the rules for determining the value of consideration for immovable property was “curative” and therefore applies retroactively, effective from 1 April 2003 (the date when the change was introduced). The case is: Dharamshibhai Somani. Read an October 2016 report [PDF 335 KB] 
  • Lump-sum lease premium or upfront lease charges not “rent”: The Central Board of Direct Taxes (CBDT) issued guidance to clarify that a lump-sum lease premium or one-time upfront lease charges that are not adjustable against periodic rent, paid or payable for acquisition of long-term leasehold rights over land or any other property, are not “rent,” and thus are not subject to tax withholding (deduction) at source. Read an October 2016 report [PDF 273 KB]
  • Transfer of land: The Mumbai Bench of Income Tax Appellate Tribunal held that no transfer of land had taken place when the agreement for the development of the land clearly stipulated that possession of the land was allowed only upon fulfillment of certain conditions. The case is: Jawaharlal L. Agicha. Read an October 2016 report [PDF 329 KB]
  • CBDT final rules with respect to buy-back of shares: Final rules about the tax treatment of the buy-back of shares have an effective date of 1 June 2016. Read an October 2016 report [PDF 303 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.