India: Depreciation on goodwill; foreign tax credit; R&D credit treatment

India: Depreciation on goodwill; foreign tax credit

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 on goodwill: The Ahmedabad Bench of Income Tax Appellate Tribunal allowed the taxpayer’s claim of depreciation on goodwill under Section 32 of the Income-tax Act, 1961 (even though the claim was not made by the taxpayer on an amended return, but was made during the course of assessment proceedings). The case is: Zydus Wellness Ltd. Read a January 2017 report [PDF 329 KB]
  • Foreign tax credit allowed on basis of “gross receipts”: The Ahmedabad Bench of the Income-tax Tribunal held that the foreign tax credit is applicable with respect to “income”—and not “gross receipts.” However, the tribunal allowed the taxpayer’s claim for foreign tax credit on the basis of “gross receipts.” The case is: Elitecore Technologies Private Ltd. Read a January 2017 report [PDF 321 KB] 
  • PANs and reporting of cash transactions: The Central Board of Direct Taxes issued guidance with respect to permanent account numbers (PANs) reflecting the links to bank accounts with PAN/Form No. 60. The rules were also amended to provide details of bank accounts in which cash deposits were made during the demonetisation period and making this information available to tax officers. Read a January 2017 report [PDF 327 KB]
  • “Tax sparing” credit: The Hyderabad Bench of the Income-tax Appellate Tribunal held that: (1) the “tax sparing” credit is allowed on the interest income under the India-Cyprus income tax treaty; (2) payment for clinical trials is not taxable as “fees for technical services” under the India-United States income tax treaty; and (3) post-merger, weighted deduction on scientific research expenditure is allowed to the merged entity. The case is: Dr. Reddy's Laboratories Ltd. Read a January 2017 report [PDF 435 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.