India: “Brand value” depreciation; management services under treaty with Finland

India: “Brand value” depreciation

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

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  • Depreciation of brand value: The Chennai Bench of the Income-tax Appellate Tribunal held that a taxpayer is eligible to claim depreciation with respect to a “brand value” The tribunal found that merely because there was subsequent amalgamation was not a basis for finding the taxpayer had not acquired any brand name. When the taxpayer acquired the brand name by making payment through banking channel before amalgamation, the taxpayer was eligible to claim depreciation. The case is: Emerald Jewel Industry India Ltd. Read an October 2016 report [PDF 329 KB]
  • Transfer of jurisdiction: The Supreme Court of India held that concerning the transfer of a taxpayer’s case from one Assessing Officer (AO) to another, an agreement between the two officers and their superiors was required prior to the transfer. The case is: Noorul Islam Educational Trust. Read an October 2016 report [PDF 326 KB]
  • Management support services not “fees for technical services” under tax treaty with Finland: The Kolkata Bench of the Income-tax Appellate Tribunal held that no technology, know-how, or skills were made available by the taxpayer while rendering management support and other services to enable the Indian group company to function on its own without the taxpayer. Therefore, such services were not taxable as “fees for technical services” under a provision of the India-Finland income tax treaty. The case is: Outotec OYJ. Read an October 2016 report [PDF 313 KB]

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