Tax Assemblage 2017 - KPMG
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© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Sr. No Particulars Citation/Source Sent on 1 India signs the third Protocol with Singapore to amend India-Singapore tax treaty Protocol to the India-Singapore tax treaty –Taxsutra.com 2 January 2017 2 Employees’ Enrolment Campaign, 2017 starts from 1 January 2017 to 31 March 2017 under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 Notification No. S.O. 4250 (E) , G.S.R. 1190 (E), G.S.R. 1191 (E), G.S.R. 1192 (E) dated 30 December 2016 3 January 2017 3 KPMG Tax Assemblage - 2016 --------------------- 3 January 2017 4 Employees’ Provident Fund Organisation issues FAQs on Employees’ Enrolment Campaign, 2017 http://www.epfindia.com/site_docs/PDF s/Circulars/Y2016- 2017/Coord_FAQ_EEC_04012017.pdf 5 January 2017 5 Salary received by a non-resident for services rendered abroad accrues outside India. Not chargeable to tax in India Utanka Roy v. DIT (W.P. No. 369 of 2014) (Cal) 6 January 2017 6 Extension of deadline for conversion of Person of Indian Origin (PIO) card into Overseas Citizen of India (OCI) card www.mha.nic.in 6 January 2017 7 Claim of depreciation on goodwill is allowed without filing revised return of income DCIT (OSD) v. Zydus Wellness Ltd. [2016] 162 ITD 604 (Ahd) 9 January 2017 8 KPMG India Tax Konnect – January 2017 --------------------- 10 January 2017 9 KPMG Tax Highlights - 2016 --------------------- 10 January 2017 10 CBDT notification – amendment to rules with respect PAN and reporting of cash transaction CBDT Notification No. 2/2017, dated 6 January 2017 13 January 2017 11 Foreign tax credit allowed on the basis of ‘gross receipts’ Elitecore Technologies Private Limited v. DCIT [2017] 184 TTJ 166 (Ahd) 13 January 2017 12 Tax sparing credit under India-Cyprus tax treaty. Payment for clinical trials not taxable as FTS under India-USA tax treaty. Post- merger, weighted deduction on scientific research expenditure allowed to the merged entity Dr. Reddy's Laboratories Ltd. v. ACIT [2017] 53 ITR(T) 285 (Hyd) 16 January 2017 13 Validity of penalty proceedings under Section 271(1)(c) of the Income-tax Act Sri Nilaya AR Projects v. ITO (ITA No. 1572/Hyd/2013) – www.itatonline.org 17 January 2017 14 Export commission is not taxable in India in the absence of specific FTS article in the respective tax treaties DCIT v. Welspun Corporation Limited [2017 183 TTJ 697 (Ahd) 17 January 2017 15 Dismantling and seaworthy packing of machinery is ‘contract of work’ and not ‘contract of service’ and therefore such ITO v. Emami Paper Mills Ltd. [2017] 163 ITD 212 (Kol) 17 January 2017 Tax Assemblage 2017
Transcript of Tax Assemblage 2017 - KPMG
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
Sr. No
Particulars Citation/Source Sent on
1 India signs the third Protocol with Singapore to amend India-Singapore tax treaty
Protocol to the India-Singapore tax treaty –Taxsutra.com
2 January 2017
2 Employees’ Enrolment Campaign, 2017 starts from 1 January 2017 to 31 March 2017 under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
Notification No. S.O. 4250 (E) , G.S.R. 1190 (E), G.S.R. 1191 (E), G.S.R. 1192 (E) dated 30 December 2016
3 January 2017
3 KPMG Tax Assemblage - 2016 ---------------------
3 January 2017
4 Employees’ Provident Fund Organisation issues FAQs on Employees’ Enrolment Campaign, 2017
http://www.epfindia.com/site_docs/PDFs/Circulars/Y2016-2017/Coord_FAQ_EEC_04012017.pdf
5 January 2017
5 Salary received by a non-resident for services rendered abroad accrues outside India. Not chargeable to tax in India
Utanka Roy v. DIT (W.P. No. 369 of 2014) (Cal)
6 January 2017
6 Extension of deadline for conversion of Person of Indian Origin (PIO) card into Overseas Citizen of India (OCI) card
www.mha.nic.in
6 January 2017
7 Claim of depreciation on goodwill is allowed without filing revised return of income
DCIT (OSD) v. Zydus Wellness Ltd. [2016] 162 ITD 604 (Ahd)
9 January 2017
8 KPMG India Tax Konnect – January 2017 ---------------------
10 January 2017
9 KPMG Tax Highlights - 2016 ---------------------
10 January 2017
10 CBDT notification – amendment to rules with respect PAN and reporting of cash transaction
CBDT Notification No. 2/2017, dated 6 January 2017
13 January 2017
11 Foreign tax credit allowed on the basis of ‘gross receipts’
Elitecore Technologies Private Limited v. DCIT [2017] 184 TTJ 166 (Ahd)
13 January 2017
12 Tax sparing credit under India-Cyprus tax treaty. Payment for clinical trials not taxable as FTS under India-USA tax treaty. Post-merger, weighted deduction on scientific research expenditure allowed to the merged entity
Dr. Reddy's Laboratories Ltd. v. ACIT [2017] 53 ITR(T) 285 (Hyd)
16 January 2017
13 Validity of penalty proceedings under Section 271(1)(c) of the Income-tax Act
Sri Nilaya AR Projects v. ITO (ITA No. 1572/Hyd/2013) – www.itatonline.org
17 January 2017
14 Export commission is not taxable in India in the absence of specific FTS article in the respective tax treaties
DCIT v. Welspun Corporation Limited [2017 183 TTJ 697 (Ahd)
17 January 2017
15 Dismantling and seaworthy packing of machinery is ‘contract of work’ and not ‘contract of service’ and therefore such
ITO v. Emami Paper Mills Ltd. [2017] 163 ITD 212 (Kol)
17 January 2017
Tax Assemblage 2017
http://www.in.kpmg.com/taxflashnews/KPMG-Flash-News-Protocol-to-the-India-Singapore-tax-treaty-2.pdf
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
Sr. No
Particulars Citation/Source Sent on
services are not taxable as fees for technical services
16 GST Council takes key decisions on contentious issues of dual control and effective date of implementation
------------------ 18 January 2017
17 ‘De Facto’ or ‘De Jure’ participation in the management, capital or control by itself is not relevant in establishing associated enterprise relationship in terms of Section 92A of the Income-tax Act
ACIT v. Veer Gems [2017] 183 TTJ 588 (Ahd)
19 January 2017
18 Consistent loss making companies cannot be rejected unless functional profile is different; allows comparability adjustments including capacity adjustment, volume adjustment and warranty cost adjustment
Erhardt+Leimer (India) Private Limited v. ACIT [2017] 183 TTJ 25 (Ahd)
19 January 2017
19 CBDT issues FAQs on the taxation and investment regime for Pradhan Mantri Garib Kalyan Yojana, 2016
CBDT Circular No. 2/2017, dated 18 January 2017
19 January 2017
20 Amendments to the Modified Special Incentive Package Scheme
http://pib.nic.in/newsite/mbErel.aspx?relid=157445; dated 18 January 2017
19 January 2017
21 Expenditure on Freebies are allowed as Business expenditure since MCI Regulations are not applicable to Pharma Companies
DCIT v. PHL Pharma P Ltd. [2017] 163 ITD 10 (Mum)
20 January 2017
22 Supreme Court grants immunity from prosecution on payment of the sum specified in the settlement order, even after the time granted by the Settlement Commission
Sandeep Singh v. Union Of India and Ors [2017] 245 Taxman 336 (SC)
24 January 2017
23 CBDT issues guiding principles for determination of the Place of Effective Management of a company
CBDT Circular No. 06/2017, dated 24 January 2017
24 January 2017
24 Writ petition is maintainable against initiation of reassessment proceedings – Supreme Court
Jeans Knit Private Limited v. DCIT [2017] 390 ITR 10 (SC)
25 January 2017
25 CBDT clarifications on implementation of General Anti-Avoidance Rules under the Income-tax Act
CBDT Circular No. 7 of 2017, dated 27 January 2017
28 January 2017
26 Section 206AA of the Income-tax Act cannot override the beneficial provisions of a tax treaty
Quick Flight Ltd. v. ITO (ITA No. 1204/Ahd/2014) – www.taxindiainternational.com
30 January 2017
27 India Economic Survey 2016-17 – Key Highlights
www.indiabudget.nic.in
31 January 2017
28 Surcharge and education cess cannot be levied on the tax deducted at source based on Section 206AA of the Act
Computer Sciences Corporation India (P.) Ltd. v. ITO [2017] 163 ITD 151(Del)
1 February 2017
29 Union Budget 2017 www.indiabudget.nic.in 2 February 2017
30 Budget 2017: Transfer Pricing proposals www.indiabudget.nic.in 3 February 2017
31 Union Budget 2017 - Building, Construction and Real Estate
www.indiabudget.nic.in 9 February 2017
32 Union Budget 2017 - Consumer Markets www.indiabudget.nic.in 9 February 2017
33 Union Budget 2017 - Education www.indiabudget.nic.in 9 February 2017
34 Union Budget 2017 - Energy and Natural Resources
www.indiabudget.nic.in 9 February 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
Sr. No
Particulars Citation/Source Sent on
35 Union Budget 2017 - Financial Services www.indiabudget.nic.in 9 February 2017
36 Union Budget 2017 - Healthcare www.indiabudget.nic.in 9 February 2017
37 Union Budget 2017 - Industrial Manufacturing
www.indiabudget.nic.in 9 February 2017
38 Union Budget 2017 - Life Sciences www.indiabudget.nic.in 9 February 2017
39 Union Budget 2017 - Private Equity www.indiabudget.nic.in 9 February 2017
40 Union Budget 2017 – Technology www.indiabudget.nic.in 9 February 2017
41 Union Budget 2017 - Tourism and Hospitality
www.indiabudget.nic.in 9 February 2017
42 Union Budget 2017 - Transport and Logistics
www.indiabudget.nic.in 9 February 2017
43 Provident Fund Office directs its field offices to expedite exemption applications under Employees’ Deposit-Linked Insurance Scheme, 1976
PFO Circular dated 6 February 2017 - Letter No. EDLI/5(1) Exemption/ Extention/17/29967
13 February 2017
44 Payment for international private leased circuit and connectivity charges for use of private bandwidth in underwater sea cable are not taxable as royalty or FTS
Geo Connect Ltd. v. DCIT (ITA Nos. 1927/Del/2008 & 127/Del/2011) – Taxsutra.com
13 February 2017
45 KPMG India Tax Konnect – February 2017 ---------------------
14 February 2017
46 Indian subsidiary of group holding company of Netherland entity does not constitute permanent establishment in India
NetApp B. V. v. DDIT [2017] 78 taxmann.com 97 (Del)
15 February 2017
47 If a tax officer finds the claim of expenditure incurred in relation to exempt income is incorrect, Rule 8D can be invoked even if the incorrect claim or disallowable expenditure is not quantified
Punjab Tractors Ltd. v. CIT [2017] 293 CTR 50 (P&H)
16 February 2017
48 Since the securities are held as stock-in-trade, no disallowance of expenditure is to be made under Section 14A of the Income-tax Act
Pr. CIT v. State Bank of Patiala [2017] 391 ITR 218 (P&H) CIT v. G K K Capital Markets [2017] 392 ITR 196 (Cal)
17 February 2017
49 Technology services provided in the form of data centre, infrastructure, connectivity and application technology are neither taxable as royalty nor as fees for technical services under the Income-tax Act
Atos Information Technology HK Ltd. v. DCIT [2017] 79 taxmann.com 26 (Mum)
20 February 2017
50 GST Compensation Bill receives final nod from the GST Council; the Council to meet on 4-5 March 2017 to discuss GST laws
---------------------
22 February 2017
51 Government notifies protocol to the India-Israel tax treaty
Notification No. 10/2017, dated 14 February 2017
22 February 2017
52 Resale Price Method considered as most appropriate method for distributors engaged in buying and reselling of goods without any value addition to such goods
Swarovski India (P.) Ltd. v. ACIT [2017] 78 taxmann.com 325 (Del)
23 February 2017
53 By applying Rule 10 of the Income-tax Rules, 30 per cent of profits have been attributed to branch for conducting marketing activities relatable to direct sales made by head office in India
DDIT v. Nipro Asia Pte Ltd. [2017] 79 Taxmann.com 154 (Del)
23 February 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
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54 Even in the absence of a PAN, lower tax rate prescribed under the tax treaty will apply
Nagarjuna Fertilizers and Chemicals Ltd. v. ACIT [2017] 55 ITR(T) 1 (Hyd)
24 February 2017
55 CBDT issues a standard operating procedure for assessing officers while verifying cash transactions relating to demonetisation
CBDT Instruction No. 03/2017, dated 21 February 2017
25 February 2017
56 Liaison office of overseas group entity constitutes fixed place PE and Indian subsidiary constitutes agency PE under the India-USA tax treaty
GE Energy Parts Inc. v. ADIT [2017] 56 ITR(T) 51 (Del)
1 March 2017
57 OECD releases Economic Survey of India http://www.oecd.org/eco/surveys/INDIA-2017-OECD-economic-survey-overview.pdf
3 March 2017
58 India’s Social Security Agreement with Portugal to come into effect from 8 May 2017
MEA’s Press Release http://mea.gov.in/pressreleases.htm?dtl/28078/India_Portugal_Social_Security_Agreement Accessed on 3 March 2017
3 March 2017
59 Capital surplus on account of waiver of loan is neither taxable nor can be included in computation of book profit under the provisions of MAT
JSW Steel Limited v. ACIT [2017] 82 taxmann.com 210 (Bang)
6 March 2017
60 CGST Bill and IGST Bill receives final nod from the GST Council; the Council to meet on 16 March 2017 to discuss SGST Bill and UTGST Bill
GOI, Press Information Bureau http://www.pib.nic.in/newsite/PrintRelease.aspx Accessed on 4 March 2017
7 March 2017
61 KPMG India Tax Konnect – March 2017 ---------------------
7 March 2017
62 Foreign Direct Investment in Limited Liability Partnership – Revised guidelines
RBI Notification No. FEMA.385/ 2017-RB, dated 3 March 2017
8 March 2017
63 Payments for global telecommunication facility by Indian agents are in the nature of reimbursement and not fees for technical services
www.taxsutra.com 8 March 2017
64 Payments to foreign entities are not taxable as fees for technical services in view of MFN clause under India-Belgium tax treaty
ITO v. Cadila Health Care Ltd [2017] 78 taxmann.com 330 (Ahd)
9 March 2017
65 Retention money cannot be regarded as income till the contractual obligation is fulfilled. Therefore, it cannot be regarded as income for computing MAT
DCIT v. Mcnally Bharat Engg.Co.Ltd (ITA No. 100/Kol/2011) – Taxsutra.com
9 March 2017
66 Penalty for concealment of income is to be deleted even though adjustment made by the TPO is accepted by the taxpayer
Pr.CIT v. Mitsui Prime Advanced Composites India Pvt. Ltd. [2017] 392 ITR 280 [Del]
14 March 2017
67 Where tax is deducted on the basis of a tax treaty, higher tax rate under Section 206AA of the Income-tax Act cannot apply
Uniphos Environtronic (P.) Ltd. v. DCIT [2017] 79 taxmann.com 75 (Ahd)
15 March 2017
68 Sales to two customers which constitutes more than 20 per cent of total sales of the taxpayer shall constitute 'dominant influence'; AE relationship upheld
Hospira Healthcare India Private Limited v. DCIT [2017] 55 ITR(T) 561 (Chny)
15 March 2017
69 Long term capital loss on off-market sale of listed shares is allowed to be set-off against long term capital gain on sale of unlisted shares
Asara Sales and Investments Private Limited v. ITO [2017] 163 ITD 682 (Pune)
20 March 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
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70 KPMG in India releases report on employee pensions in India at FICCI’s conference on pension sector
https://home.kpmg.com/in/en/home/insights/2017/03/pension-pf-nps.html?cid=ext-eml_scbr_2017_tl-in_pension_in_all&utm_medium=eml&utm_source=ext-scbr&utm_content=in-all&utm_campaign=2017-tl-in-pension
Accessed on 20 March 2017
20 March 2017
71 India and Brazil sign Social Security Agreement
http://mea.gov.in/press-releases.htm?dtl/28182/Social_Security_ Agreement_between_India_and_Brazil
Accessed on 20 March 2017
20 March 2017
72 The Government of India issues notification on reducing the administrative charges under Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
http://egazette.nic.in/WriteReadData/2015/162820.pdf http://egazette.nic.in/WriteReadData/2017/174782.pdf
Accessed on 21 March 2017
21 March 2017
73 Proposed amendments to the Finance Bill, 2017
www.taxsutra.com 22 March 2017
74 CBDT issues FAQs on Income Computation and Disclosure Standards
CBDT Circular No. 10/2017, dated 23 March 2017
24 March 2017
75 Government issues guidelines for waiver of interest charged for default in deduction and payment of tax under the Income-tax Act
CBDT Circular No. 11/2017, dated 24 March 2017
27 March 2017
76 Since lessee is not the owner of the asset, depreciation is not allowed in the hands of lessee – Supreme Court
Mother Hospital Pvt. Ltd. v. CIT [2017] 392 ITR 628 (SC)
27 March 2017
77 Employees’ Provident Fund Organisation directs its field offices to pay Provident Fund and Pension withdrawal benefit to eligible International Workers in their Indian bank accounts on the date of leaving service in India
EPFO Circular – http://www.epfindia.com/site_docs/PDFs/Circulars/Y2016-2017/IWU7_ PaymentPFwithdrawlbenefit_Pen_34140.pdf Accessed on 28 March 2017
28 March 2017
78 India signs five unilateral APAs on management cross charges
www.taxsutra.com
30 March 2017
79 The Government of India extends the time line of Employees’ Enrolment Campaign, 2017 till 30 June 2017 under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
The Gazette of India http://egazette.nic.in/WriteReadData/2017/175058.pdf
30 March 2017
80 Payment for advertising and publicity, with or without the use of marks, identification or logo of non-resident entity is not taxable as royalty or FTS under the Income-tax Act
Reebok India Company v. DCIT [2017] 56 ITR(T) 211 (Del)
30 March 2017
81 Amortisation of certain preliminary expenses cannot be claimed on the basis of share premium since it is not capital employed in the business of the company - Supreme Court
Berger Paints India Ltd. v. CIT [2017] 393 ITR 113 (SC)
31 March 2017
82 CBDT notifies new income-tax return forms for Assessment Year 2017-18
CBDT Notification No. 21/2017, dated 30 March 2017
3 April 2017
83 KPMG Tax Assemblage – January to March 2017
--------------------- 4 April 2017
84 CBDT notifies rules and form with respect to CBDT Notification No. 25/2017 dated 3 4 April 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
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the patent box regime under Section 115BBF of the Income-tax Act
April 2017
85 CBDT issues press release and draft notification for exemption of acquisitions of equity shares from long term capital gain tax
www.incometaxindia.gov.in
4 April 2017
86 Enhancement of Investment limit in Government Securities for Foreign Portfolio Investors
www.sebi.gov.in
4 April 2017
87 Transfer Pricing Adjustment in relation to intra-group services deleted in the absence of justification of Nil ALP under CUP method
SABIC Innovative Plastics India Private Limited v. ACIT (ITA No. 1125/Ahd/2014 - Assessment Year 2009-10 and IT(TP) No. 427/Ahd/16 - Assessment Year 2011-12)
5 April 2017
88 Under India-Italy tax treaty, tax is to be deducted on actual payment of royalty
Saira Asia Interiors (P.) Ltd v. ITO [2017] 164 ITD 687 (Ahd)
5 April 2017
89 Claim for exemption in respect of House Rent Allowance rejected where rent paid by married daughter to her mother
Meena Vaswani v. ACIT [2017] 164 ITD 120 (Mum)
5 April 2017
90 Mandatory quoting of Aadhaar number for PAN applications and filing return of income
CBDT Press Release dated 5 April 2017
6 April 2017
91 Draft GST Rules for various procedures released
--------------------- 6 April 2017
92 Tax credit can be claimed in respect of taxes deducted in the U.S.; restricted to rates prescribed in the India-USA tax treaty
Bhavin A Shah v. ACIT [2017] 164 ITD 610 (Ahd)
10 April 2017
93 Income-tax deducted outside India cannot be allowed as deduction under Section 37(1) of the Income-tax Act
DCIT v. Elitecore Technologies Private Limited [2017] 186 TTJ 1 (Ahd)
11 April 2017
94 Disallowance under Section 14A of the Income-tax Act is applicable to shares held as stock-in-trade
Kalyani Barter (P) Ltd. v. ITO [2017] 163 ITD 571 (Kol)
12 April 2017
95 KPMG India Tax Konnect – April 2017 --------------------- 13 April 2017
96 Government makes rules relating to merger or amalgamation of a foreign company with an Indian company and vice versa
GOI Notification dated 13 April 2017 17 April 2017
97 Government still needs to notify key aspects under the GST Acts
Central Goods and Services Tax Act, 2017
17 April 2017
98 Foreign Portfolio Investors permitted to operate in International Financial Services Centre
www.sebi.gov.in
17 April 2017
99 Waiver of interest in the hands of amalgamating company needs to be set off against the accumulated losses in the hands of amalgamated company – Supreme Court
Mcdowell & Company Ltd. v. CIT [2017] 393 ITR 570 (SC)
19 April 2017
100 Income of a foreign shipping company is not taxable in India as place of effective management is outside India
Pearl Logistics and EX-IM Corporation v. ITO [2017] 80 taxmann.com 217 (Rajkot)
19 April 2017
101 Sale of business on a 'going concern' basis is a 'slump sale' and not a sale of depreciable asset under Section 50(2) of the Income-tax Act – Supreme Court
CIT v. Equinox Solution Pvt. Ltd. [2017] 393 ITR 566 (SC)
20 April 2017
102 No income tax on salary recovered for not serving notice period
Nandinho Rebello v. DCIT [2017] 164 ITD 440 (Ahd)
24 April 2017
103 40 per cent of the global profit to Indian PE is attributed based on the functions performed, assets deployed and risk
Arrow Electronics India Ltd v. ADIT [I.T (TP).A Nos.209 & 210/Bang/2011] - AY 2000-01 & AY 2001-02 – Taxsutra.com
27 April 2017
http://www.in.kpmg.com/TaxFlashNews-INT/KPMG-Flash-News-Elitecore-Technologies-Private-Limited-3.pdf
http://www.in.kpmg.com/TaxFlashNews-INT/KPMG-Flash-News-Elitecore-Technologies-Private-Limited-3.pdf
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
Sr. No
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assumed
104 International circuit for Formula One championship constitutes a fixed place PE under the India-U.K. tax treaty
Formula One World Championship Ltd v. CIT [2017] 394 ITR 80 (SC)
28 April 2017
105 Government of India declares 8.65 per cent interest rate on Employees’ Provident Funds Scheme
http://www.epfindia.com/site_docs/PDF s/Circulars/Y2017- 2018/RateOfInterest_1617_906.pdf Accessed on 28 April 2017
28 April 2017
106 Quasi capital transaction, not an interest simplictor and notional interest adjustment deleted
Cadila Healthcare Limited v. ACIT [2017] 186 TTJ 421 (Ahd)
2 May 2017
107 Taxation Laws (Amendment) Bill, 2017 abolishes cesses levied under the current regime and provides for IGST on import of goods
Taxation Laws (Amendment) Bill, 2017 passed by Lok Sabha on 6 April 2017
2 May 2017
108 The provisions of mandatory filing of tax return before the due date to claim benefit under Section 10B of the Income-tax Act are constitutionally valid
Nath Brothers Exim International Ltd v. Union of India & Anr. [2017] 394 ITR 577 (Del)
2 May 2017
109 CBDT releases first APA Annual Report CBDT Annual Report 2016-17 dated April 2017
4 May 2017
110 Issue decided by the jurisdictional High Court does not remain as ‘debatable issue’ and therefore adjustment under Section 143(1)(a) of the Income-tax Act is permissible in that jurisdiction – Supreme Court
DCIT v. Raghuvir Synthetics Ltd. [2017] 394 ITR 1 (SC)
5 May 2017
111 Disallowance under Section 40(a)(ia) of the Income-tax Act can be made even for the amount paid during the year – Supreme Court
Palam Gas Service v. CIT [2017] 394 ITR 300 (SC)
5 May 2017
112 CBDT issues press release and draft notification prescribing the method for valuation of unquoted equity shares for the purposes of Section 56(2)(x) and Section 50CA of the Income-tax Act
www.incometaxindia.gov.in
7 May 2017
113 Levy of penalty for non-filing of Form 3CEB for share investment transaction, upheld
BNT Global Pvt. Ltd. v. ITO [2017] 165 ITD 472 (Mum)
9 May 2017
114 OECD - BEPS Action 13 - Guidance on the Implementation of Country by Country Reporting
www.oecd.org
9 May 2017
115 Expenditure is to be disallowed under Section 14A in relation to dividend income which is subject to dividend distribution tax – Supreme Court
Godrej & Boyce Manufacturing Company Limited v. DCIT [2017] 394 ITR 449 (SC)
11 May 2017
116 The process of matching of Input Tax Credit (ITC) under GST
The Central Goods and Services Tax Act, 2017 and draft Return Rules under GST
12 May 2017
117 Aadhaar number not mandatory for foreign national and non-resident for PAN and Income-tax return
Ministry of Finance, GOI Notification No. 37/2017, dated 11 May 2017
15 May 2017
118 CBDT issues draft ICDS on real estate transactions
CBDT press release dated 11 May 2017
15 May 2017
119 Intern visa – Detailed guidelines issued by the Government of India
http://mha.nic.in/ http://www.cgivancouver.org/pages.php ?id=236
16 May 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
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http://www.vfsglobal.com/india/australia/ visa_services/Intern_Visa.html
120 Unrealised foreign exchange loss on loan obtained for indigenous purchase of assets is ‘revenue loss’ and therefore allowed as deduction under Section 37(1) of the Income-tax Act
Hyundai Motor India Limited v. DCIT [2017] 187 TTJ 97 (Chny)
16 May 2017
121 Deemed brand development is not a separate international transaction
Hyundai Motor India Limited v. DCIT [2017] 187 TTJ 97 (Chny)
16 May 2017
122 Income from the sub-licensing of property is taxable as house property income and not business income
Raj Dadarkar and Associates v. ACIT [2017] 394 ITR 592 (SC)
17 May 2017
123 Cabinet approves signing of the Multilateral Convention to implement tax treaty related measures to prevent Base Erosion and Profit shifting by India
GOI Press Release dated 17 May 2017 19 May 2017
124 Export commission cannot partake the character of royalty and it cannot be disallowed under Section 40(a)(i) of the Income-tax Act
CIT v. Hero Motocorp Limited [2017] 394 ITR 403 (Del)
19 May 2017
125 Reimbursement of cost from AE (without mark-up) excluded from operating costs while computing arm’s length price. In the absence of a specific plea and supporting documents, Revenue’s general plea dismissed
CIT v. CPA Global Services Private Limited [2017-TII-29-HC-DEL-TP]
22 May 2017
126 KPMG India Tax Konnect – May 2017 --------------------- 22 May 2017
127 OECD releases discussion draft on implementation guidance on approach to Hard-to-Value Intangibles for tax administrations
www.oecd.org
25 May 2017
128 Reimbursement of expenditure pursuant to training and technical agreement is not taxable as FTS as no profit element is embedded in such reimbursement
Gemological Institute International Inc v. DCIT [2017] 57 ITR(T) 116 (Mum)
25 May 2017
129 SEBI issues Consultation Paper to streamline the process of monitoring of Offshore Derivative Instruments (ODIs)/ Participatory Notes (PNs)
http://www.sebi.gov.in
30 May 2017
130 Exempted establishments have to file online monthly return through new updated software launched by Employees’ Provident Fund Organisation
EPFO Circular http://www.epfindia.com/site_docs/PDF s/Circulars/Y2017-2018/Exem_Online FilingReturn_ExEstt_29052017.pdf Accessed on 5 June 2017
5 June 2017
131 Government authorisation/approvals are not eligible for depreciation. The same has not been treated as goodwill for the purpose of depreciation
Pitney Bowes India (P) Ltd v. DCIT (ITA Nos. 289 to 293/Del/2013) – Taxsutra.com
6 June 2017
132 Transfer pricing adjustment on account of marketing intangibles by factoring AMP Intensity in the profit rates of comparables upheld
Luxottica India Eyewear Pvt. Ltd. v. ACIT [2017] 187 TTJ 157 (Del)
6 June 2017
133 CBDT issues final notification for exemption of acquisitions of equity shares from long term capital gain tax under Section 10(38) of the Income-tax Act
CBDT Notification No. 43/2017, dated 5 June 2017
7 June 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
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134 Payment for ‘standard operating procedure’ amounts to sharing of information concerning industrial, commercial or scientific experience and therefore taxable as royalty under India-Germany tax treaty
Oncology Services India Pvt Ltd v. ADIT [2017] 165 ITD 277 (Ahd)
7 June 2017
135 Revision in framework for issuance of rupee denominated bonds
www.rbi.org.in
8 June 2017
136 India signs the Multilateral Convention www.oecd.org 9 June 2017
137 CBDT notifies the much awaited revised Safe Harbour Rules
CBDT Notification No. 46/2017/F. No. 370142/6/2017-TPL, dated 7 June 2017
9 June 2017
138 Key changes in the Rules for various procedures under GST
--------------------- 9 June 2017
139 Issuance of Rupee Denominated Bonds overseas - Revised framework
RBI AP DIR Circular No. 47 dated 7 June 2017
14 June 2017
140 KPMG India Tax Konnect – June 2017 --------------------- 15 June 2017
141 CBDT issues a press release and a draft notification on special transitional provisions for a foreign company said to be resident in India on account of POEM
CBDT press release, dated 15 June 2017 – Taxsutra.com
16 June 2017
142 Rejection of Internal CPM for export to AE by placing importance on various factors relevant for comparability
Inductotherm (India) Pvt Ltd v. DCIT [2017] 187 TTJ 525 (Ahd)
19 June 2017
143 CBDT notifies rules for the computation mechanism of interest income pursuant to secondary adjustments
CBDT Notification No. 52/2017, F. No. 370142/12/2017-TPL, dated 15 June 2017
20 June 2017
144 Multilateral Convention - impact on India vis-à-vis other treaty partners
www.oecd.org
20 June 2017
145 SEBI issues Consultation Paper on easing of access norms for investment by FPIs
http://www.sebi.gov.in
22 June 2017
146 Press Release on partial relief by the Hon’ble Supreme Court for linking PAN with Aadhaar
Press release dated 10 June 2017 www.incometaxindia.gov.in
23 June 2017
147 Employees’ Provident Fund Organisation issues clarification on definition of Indian International Workers
EPFO Circular http://www.epfindia.com/site_docs/PDF s/Circulars/Y2017- 2018/IWU_Definition_InternationalWork er_5041 Accessed on 27 June 2017
27 June 2017
148 India inks Unilateral APA in ITES dealing with severance compensation
www.tp.taxsutra.com
28 June 2017
149 Disallowance of expenditure under Section 14A read with Rule 8D in relation to exempt income is mandatory irrespective of whether expenditure is incurred or not
Mr. M. A. Alagappan v. ACIT [2017] 165 ITD 401 (Chny)
29 June 2017
150 Employees’ Provident Fund Organisation issues revised Certificate of Coverage application for Indian workers
EPFO Circular http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017- 2018/IWU_Application_COC_6057.pdf Accessed on 4 July 2017
5 July 2017
151 Enhancement of Investment limit in Government Securities for Foreign Portfolio Investors
RBI Circular No. RBI/2017-18/12, dated 3 July 2017 SEBI Circular No. IMD/FPIC/CIR/P/2017/74, dated 4 July 2017 www.rbi.org.in and www.sebi.gov.in
5 July 2017
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152 A foreign company constitutes a service PE in India under the India-UAE tax treaty. Services provided in the form of sharing or permitting to use the special knowledge or expertise falls within the term ‘royalty’ under the tax treaty
ABB FZ-LLC v. DCIT [2017] 166 ITD 326 (Bang)
6 July 2017
153 Mauritius signs the Multilateral Convention www.oecd.org
7 July 2017
154 Capital gains arising to Netherlands entity on sale of shares of its Indian subsidiary deriving its value from immovable property is not taxable in India under the India-Netherlands tax treaty
DDIT v. Venenberg Facilities BV [2017 397 ITR 425 (AP)
9 July 2017
155 SEBI Guidelines for issuance of ODIs, with derivative as underlying, by the ODI issuing FPIs
SEBI Circular No. CIR/IMD/FPI&C/76/ 2017, dated 7 July 2017 www.sebi.gov.in
10 July 2017
156 ‘De Facto’ or ‘De Jure’ participation in the management, capital or control by itself is not relevant in establishing associated enterprise relationship in terms of Section 92A of the Income-tax Act
Pr. CIT v. Veer Gems [2017] 249 Taxman 264 (Guj)
12 July 2017
157 The Chamber of Tax Consultants challenges the constitutional validity of ICDS
The Chamber of Tax Consultants & Anr. v. UOI [W.P(C) 5595/2017] – Delhi HC
13 July 2017
158 Foreign Portfolio Investors permitted to operate in International Financial Services Centre
SEBI Circular dated 11 July 2017 http://www.sebi.gov.in
13 July 2017
159 CBDT issues a notification prescribing the method for valuation of unquoted shares for the purposes of Section 56(2)(x) and Section 50CA of the Income-tax Act
CBD Notification No. 61/2017, F. No. 149/136/2014-TPL www.incometaxindia.gov.in
14 July 2017
160 KPMG India Tax Konnect – July 2017 ------------------------- 14 July 2017
161 Disallowance under Section 14A does not apply to computation of MAT
ACIT v. Vireet Investment Pvt Ltd. [2017] 58 ITR(T) 313 (Del)
18 July 2017
162 CBDT clarifies that tax shall not to be deducted on GST component of services
CBDT Circular No. 23/2017, dated 19 July 2017
20 July 2017
163 Remuneration received in India by non-resident taxpayer for services rendered outside India not taxable in India
Sumana Bandyopadhyay & Anr. v. DDIT (GA 3745 of 2016 with ITAT 374 of 2016)
21 July 2017
164 Higher tax demand under Section 206AA cannot be raised on account of an incorrect PAN mentioned in the TDS return
Purnima Advertising Agency Pvt Ltd v. DCIT [2017] 397 ITR 526 (Guj)
21 July 2017
165 SEBI permits Foreign Portfolio Investors (FPIs) to invest in unlisted securities
SEBI Circular dated 20 July 2017 www.sebi.gov.in
21 July 2017
166 Employees’ Provident Fund Organisation issues fresh circular on the implications of non-filing of online returns by exempted Provident Fund Trusts
EPFO Circular http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017-2018/Exem_OnlineFilingReturn_ExEstt_29052017.pdf EPFO Circular http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017-2018/Exem_OnlineReturn_7247.pdf Accessed on 24 July 2017
24 July 2017
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International”), a Swiss entity. All rights reserved.
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167 Regulatory Fees by FPI from ODI subscribers
SEBI Notification dated 20 July 2017 www.sebi.gov.in
24 July 2017
168 Applicability of time limit for proceedings under Section 201 of the Income-tax Act for non-compliance of TDS provisions
Mass Awash Private Limited v. CIT [2017] 397 ITR 305 (All)
26 July 2017
169 CBDT issues FAQs on computation of book profit for levy of MAT and proposes amendment to Section 115JB of the Income-tax Act
CBDT Circular No. 24/2017, dated 25 July 2017
26 July 2017
170 Location savings is relevant for investigating the transaction, cannot be a sole basis for ALP determination
Parexel International Clinical Research Pvt. Ltd. v. DCIT[2017] 84 taxmann.com 15 (Bang)
28 July 2017
171 Unconnected windmill revenue to be treated as non-operating and forex fluctuation as operating in nature
ACIT v. Rajratna Metal Industries Ltd. [ITA No. 1050/Ahd/2015 with CO No. 91/Ahd/2015, AY: 2010-11] – Taxsutra.com
31 July 2017
172 OECD releases Updated Guidance on the Implementation of Country by Country Reporting
www.oecd.org
31 July 2017
173 Capital gain credited to capital reserve account instead of profit and loss account cannot be considered while computing book profit under the provisions of MAT
Pr.CIT v. Bhagwan Industries Ltd (ITA No. 436 of 2015, 18 July 2017) – itatonline.com
1 August 2017
174 Employees’ Provident Fund Organisation launches new software for online generation of Certificate of Coverage
EPFO Circular – http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017- 2018/IWU_Application_COC_6057.pdf & EPFO Circular - http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017- 2018/IWU_COC_Generation_1708.pdf Accessed on 2 August 2017
2 August 2017
175 Transfer of shares by Mauritian company under the group reorganisation is not taxable in India under the India-Mauritius tax treaty
CIT v. JSH (Mauritius) Ltd. [2017] 297 CTR 275 (Bom)
3 August 2017
176 KPMG India Tax Konnect – August 2017 ------------------------- 4 August 2017
177 Exemption under Section 11 of the Income-tax Act is not available because the taxpayer’s object and activities cannot be regarded as ‘education’
ITO v. FRP Institute (ITA No. 1385/Mds/2015) – Taxsutra.com
8 August 2017
178 Liaison and project offices do not constitute a PE in India
DIT v. Mitsui & Co. Ltd [2017] 84 taxmann.com 3 (Del)
9 August 2017
179 R&D expenditure incurred prior to DSIR approval are eligible for weighted deduction under Section 35(2AB) of the Income-tax Act
Maruti Suzuki India Limited v. UOI [2017] 250 Taxman 113 (Del)
10 August 2017
180 No disallowance can made for belated TDS remittances applying non-discrimination article under the tax treaty
Cooper Standard Automotive India Pvt Ltd. v. ACIT [2017] 84 taxmann.com 200 (Chny)
11 August 2017
181 The activity of bottling of LPG is treated as production/manufacture for the purpose of deduction under Section 80-IA of the Income-tax Act
CIT v. Hindustan Petroleum Corporation Ltd [2017] 396 ITR 696 (SC)
14 August 2017
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182 Higher rentals received from third party sub-lessees taxable in the hands of the first lessor where the lease is shown to be sham
Maneklal Agarwal v. DCIT [2017] 396 ITR 721 (SC)
22 August 2017
183 CBDT amends the report on computation of book profits for Ind AS complaint companies
CBDT Notification No.90/2017, dated 18 August 2017
22 August 2017
184 Profits from offshore and onshore services are taxable in India and it is attributable to the supervisory PE in India
Shanghai Electric Group Co. Ltd. v. DCIT [2017] 84 taxmann.com 44 (Del)
22 August 2017
185 SEBI clarification on exchange traded option contracts on EUR-INR, GBP-INR AND JYP-INR currency pairs
SEBI Circular No. 98, dated 31 August 2017 www.sebi.gov.in
1 September 2017
186 Amendments and changes to SEBI IFSC guidelines 2015 - relating to Issuance, listing, trading of debt securities
SEBI Circulars No. 96 and 97, dated 31 August 2017 www.sebi.gov.in
1 September 2017
187 Employees’ Provident Fund Organisation issues a circular on settlement of Provident Fund/Pension claims for Japanese expatriates
EPFO Circular – http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017- 2018/IWU_Clari_Japan_11311.pdf Accessed on 6 September 2017
6 September 2017
188 KPMG India Tax Konnect – September 2017
------------------------- 8 September 2017
189 TDS provisions are not applicable where the taxpayer has not claimed any expenditure and made suo-motu disallowance under Section 40(a)(ia) of the Income-tax Act
Destimoney Enterprises Limited v. ITO(TDS) [ITA NO.4124 & 4125/Mum/2015] - Taxsutra.com
11 September
2017
190 Overseas taxes and Medicare would not constitute taxable salary in India
Shri Sunil Shinde v. ACIT [2017] 85 taxmann.com 297 (Bang)
12 September
2017
191 The non-compete fee is not taxable because it is in the nature of capital receipt and it was not a camouflage to avoid payment of tax
CIT v. Mrs. Tara Sinha [2017] 85 taxmann.com 9 (Del)
12 September 2017
192 Compounding fee paid to the municipal corporation for regularising a building plan is allowable as business deduction under Section 37 of the Income-tax Act
Keerthi Estates (P) Ltd v. DCIT (ITA No. 271/Hyd/2016) – Taxsutra.com
13 September 2017
193 Key decisions by the GST Council to address concerns of trade and industry
------------------------- 14 September 2017
194 Tax deduction needs to be made in the hands of the legal heir in case of deceased depositor
Notification No.8/2017 dated 13 September 2017
14 September 2017
195 Importance of filing Form GST TRAN-1 and precautions to be taken
CBEC Order No 2/2017 dated 18 September 2017
19 September 2017
196 CBDT draft notification - mechanism proposed for self-reporting of estimation of income and tax liability by companies and person to whom tax audit is applicable
CBDT Draft Notification, dated 19 September 2017
20 September 2017
197 Share premium amount added to the income of the taxpayer due to failure to prove identity, genuineness and creditworthiness of the investors
Umiya Pipes Pvt. Ltd. v. ACIT (ITA No. 1679/Ahd/2014) - Taxsutra.com
21 September 2017
198 Rupee Denominated Bonds (RBDs or Masala Bonds) from the limit for investment by Foreign Portfolio Investors in corporate bonds
RBI Circulars No. 05 and 06 dated 22 September 2017 www.rbi.org.in
25 September 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
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199 CBDT prescribes procedure for filing statement of income from a country or specified territory outside India and foreign tax credit
CBDT Notification No. 9/2017, dated 19 September 2017
26 September 2017
200 Contract receipts cannot be treated as income of a joint venture company since it was a case of diversion of income by overriding title
Soma TRG Joint Venture v. CIT [2017] 86 taxmann.com 83 (J&K)
26 September 2017
201 Transaction-by-transaction analysis to be considered; Bundled benchmarking approach is neither automatic nor mandate of law; provision for warranty not created on historical trend is allowable as deduction both under normal and MAT provisions
DCIT v. Landis + Gyr Ltd. [2017] 86 taxmann.com 109 (Kol)
28 September 2017
202 SEBI Circular: Rupee Denominated Bonds issued overseas (Masala bonds) excluded from Foreign Portfolio Investors Corporate Debt Limit
www.sebi.gov.in 4 October 2017
203 Penalty is to be levied for default in payment of self-assessment tax while filing original tax return even though the taxpayer has filed a revised return of income and paid the tax
Claris Life Sciences Limited v. DCIT [2017] 59 ITR(T) 450 (Ahd)
5 October 2017
204 The Supreme Court affirms the constitutional validity of dividend distribution tax on composite income of tea companies
Union of India v. Tata Tea Co. Ltd. & Anr [2017] 398 ITR 260 (SC)
5 October 2017
205 The Ministry of Corporate Affairs notifies provisions relating to the restriction on the ‘layers of subsidiaries’ under the Companies Act, 2013
Notification No. S.O. 3086(E), dated 20 September 2017 Notification No. G.S.R. 1176(E), dated 20 September 2017
6 October 2017
206 Draft rules on Master File and Country by Country reporting released by CBDT
CBDT Notification No. F. No. 370142/25/2017-TPL
7 October 2017
207 Delhi High Court lays down guidelines for reopening of assessment proceedings
Sabh Infrastructure Ltd. v. ACIT [2017] 398 ITR 198 (Del)
9 October 2017
208 No ‘transfer’ results for capital gains taxation if joint development agreement is not registered; income cannot be taxed on a hypothetical basis – Supreme Court
CIT v. Balbir Singh Maini [2017] 86 taxmann.com 94 (SC)
10 October 2017
209 Investments made before the date of furnishing belated return of income would be eligible for exemption under Section 54 of the Income-tax Act
Anita Ajay Shad v. ITO [2017] 86 taxmann.com 246 (Ahd)
12 October 2017
210 While computing a deduction under Chapter VI-A, it is mandatory to consider depreciation – Supreme Court
Plastiblends India Limited v. ACIT [2017] 86 taxmann.com 137 (SC)
12 October 2017
211 DSIR amends guidelines for approval of in-house R&D centres and submission of report under Section 35(2AB) of the Income-tax Act
http://www.dsir.gov.in/
16 October 2017
212 Solar days to be considered and not man days for determining Service PE under the India-Saudi Arabia tax treaty. In the absence of FTS article under a tax treaty, services are taxable under ‘Other Income’ article
Electrical Material Center Co. Ltd v. DDIT [2017] 86 taxmann.com 222 (Bang)
17 October 2017
213 Employees’ Provident Fund Organisation issues FAQs on its Inspection Policy
EPFO Circular – http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017-
17 October 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
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2018/CAIU_FAQ_InspectionPolicy_13502.pdf Accessed on 17 October 2017
214 Employees’ Provident Fund Organisation has issued guidelines for monitoring the Provident Fund Trusts of exempted establishments
EPFO Circular – http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017-2018/Exem_OnlineReturn_ExEstt_10735.pdf EPFO Circular – http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017-2018/Exem_RTMS_ExemEstt_13587.pdf
Accessed on 17 October 2017
17 October 2017
215 If the statute is unambiguous, it cannot be contended that the method which is favourable to the taxpayer should be adopted – Supreme Court
Bimal Kishore Paliwal & Ors v. CWT [2017] 87 taxmann.com 40 (SC)
18 October 2017
216 Deemed dividend is not taxable in the hands of a loan recipient concern if such concern is not a shareholder of the lender company – Supreme Court
CIT v. Madhur Housing and Development Company (Civil Appeal No. 3961 of 2013) – Taxsutra.com
18 October 2017
217 CBDT issues clarification related to guidelines for establishing ‘Place of Effective Management’ in India
CBDT Circular No. 25 of 2007, dated 23 October 2017
24 October 2017
218 Due date for furnishing Country by Country Report for first fiscal year in India extended to 31 March 2018
CBDT Circular No. 26/2017, dated 25 October 2017
25 October 2017
219 CBDT signs unilateral APA with taxpayer operating in the travel industry
------------------------- 26 October 2017
220 Payment for granting distribution right of ‘Adwords program’ is taxable as ‘royalty’ under the Income-tax Act as well as India-Ireland tax treaty
Google India Private Ltd. v. ACIT [2017] 86 taxmann.com 237 (Bang)
27 October 2017
221 KPMG Tax Assemblage – July to September 2017
------------------------- 27 October 2017
222 Indian subsidiary of a foreign company providing back office support services does not constitute a PE in India under India-USA tax treaty – Supreme Court
ADIT v. E-Funds IT Solution Inc. [2017] 86 taxmann.com 240 (SC)
28 October 2017
223 India signs a Unilateral Advance Pricing Agreement covering marketing service, trading and assembly activities
Taxsutra Article dated 31 October 2017 www.taxsutra.com
31 October 2017
224 Final rules on Master File and Country by Country reporting released by Indian Government
CBDT Notification No. S.O. 3497(E) 2 November 2017
225 CBDT cannot issue any Circular/Instruction having retrospective operation – Supreme Court
CIT v. Gemini Distilleries [2017] 398 ITR 343 (SC)
3 November 2017
226 Pension Fund Regulatory and Development Authority increases the maximum age of joining National Pension System (NPS) from
http://pfrda.org.in/index1.cshtml?lsid=4 accessed on 3 November 2017
6 November 2017
http://www.in.kpmg.com/TaxFlashNews-INT/KPMG-Flash-News-Madhur-Housing-and-Development-Company-2.pdf
http://www.in.kpmg.com/TaxFlashNews-INT/KPMG-Flash-News-Madhur-Housing-and-Development-Company-2.pdf
http://www.in.kpmg.com/TaxFlashNews-INT/KPMG-Flash-News-Madhur-Housing-and-Development-Company-2.pdf
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
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60 years to 65 years under NPS all citizen model and corporate sector model
PFRDA Circular - http://pfrda.org.in/WriteReadData/Links/Circular- Increase%20in%20joining%20age%20under%20NPS24991e86-8d6d-41abbedd-74fbf3b62fd3.pdf (Circular No. PFRDA/2017/35/PD/1) accessed on 3 November 2017
227 Mobilisation fees received for transportation of rigs for providing services and facilities in connection with the extraction of mineral oil in India are taxable under Section 44BB of the Income-tax Act – Supreme Court
Sedco Forex International Inc., v. CIT [2017] 87 taxmann.com 29 (SC)
6 November 2017
228 KPMG India Tax Konnect – November 2017 ------------------------- 7 November 2017
229 The Delhi High Court decision on the constitutional validity of ICDS
The Chamber of Tax Consultants & Anr v. UOI [W. P. (C) 5595/2017 & CM APL 23467/2017] – Taxsutra.com
9 November 2017
230 State taxes paid in the United States of America (USA) eligible for foreign tax credit in India
Dr. Rajiv I. Modi v. DCIT [2017] 86 taxmann.com 253 (Ahd)
10 November 2017
231 Cabinet gives approval for entering a tax treaty between India and the Hong Kong
http://pib.nic.in/newsite/erelease.aspx?relid=173394
10 November 2017
232 CBDT clarifies that indirect transfer provisions shall not apply to a non-resident on account of redemption or buy-back of its share or interest held indirectly in specified funds
CBDT Circular No. 28/2017, dated 7 November 2017
13 November 2017
233 TDS provisions are applicable on the provision for expenditure created in books of accounts and reversed subsequently
Toyota Kirloskar Motors Pvt. Ltd. v. ITO (ITA No. 1185/Bang/2014) – Taxsutra.com
13 November 2017
234 Premature redemption of secured premium notes is not a colourable device. Premium paid on the same is allowed as deduction under the Income-tax Act
Nirma Ltd v. ACIT [2017] 86 taxmann.com 286 (Guj)
15 November 2017
235 Depreciation on goodwill is allowed under Section 32 of the Income-tax Act
PCIT v. Zydus Wellness Ltd [2017] 87 taxmann.com 82 (Guj)
16 November 2017
236 Amendments and changes to SEBI IFSC guidelines 2015 - Definition of Issuer
http://www.sebi.gov.in
16 November 2017
237 Investments by FPIs in Hybrid Securities www.sebi.gov.in 16 November 2017
238 Amendment in the Income-tax Act does not affect the provisions of the tax treaties unless the same are included in the tax treaty
DCIT v. Bank of India (ITA No. 3082/Mum/2015) – Taxsutra.com
17 November 2017
239 CBDT lays down the guidelines for the applicability of Section 143(1)(a)(vi) of the Income-tax Act while processing certain return of income
CBDT Instruction No. 10/2017, dated 15 November 2017
17 November 2017
240 RBI extends time for settlement of Government Securities by Foreign Portfolio Investors (FPI's) to T+2 basis
www.rbi.org.in 17 November 2017
241 Rajasthan High Court’s Larger Bench’s decision on filing of appeal by the tax
CIT v. Gad Fashion [2017] 87 taxmann.com 239 (Raj)
21 November 2017
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International”), a Swiss entity. All rights reserved.
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department contrary to the CBDT circular on monetary limits
242 Anti-avoidance provisions of Section 93 of the Income-tax Act do not apply where assets are transferred from a non-resident to a resident
Tata Industries Ltd. v. ACIT [2017] 87 taxmann.com 240 (Mum)
21 November 2017
243 Review of Securities Lending and Borrowing Framework
http://www.sebi.gov.in 21 November 2017
244 Income earned abroad by a non-resident cannot be taxed in India for mere receipt of salary in Indian bank account
Pramod Kumar Sapra v. ITO (ITA No 5965 of 2015) (Del)
24 November 2017
245 Interest accumulated in a recognised Provident Fund account post retirement/end of employment is considered taxable
ACIT v. Shri Dilip Ranjrekar (ITA No 858 of 2016) (Bang)
27 November 2017
246 Advance deposit of central excise duty in the personal ledger account amounts to actual payment of duty under Section 43B of the Income-tax Act and hence eligible for deduction – Supreme Court
CIT v. Modipon Ltd (Civil Appeal No. 19763 of 2017) – Taxsutra.com
30 November 2017
247 India’s reservations on 2017 update to the OECD Model Tax Convention and Commentary
The 2017 update to OECD MC has been approved by OCED Council on 21 November 2017. www.oecd.org
30 November 2017
248 Payment for intranet charges and SAP software is royalty under the Income-tax Act as well as under the India-Germany tax treaty
SMS Iron Technology Pvt. Ltd v. ITO (ITA No. 4480 to 4486/Del/2014) – Taxsutra.com
1 December 2017
249 CBDT Circular/Instruction specifying monetary limit for filing appeal is applicable even to pending appeals/matters subject to certain conditions – Supreme Court
DIT v. S.R.M.B. Dairy Farming (P) Ltd. [SLP(C) No. 24055/2013, dated 14 November 2017] – itatonline.com
4 December 2017
250 KPMG India Tax Konnect – December 2017 ------------------------- 6 December 2017
251 Since the taxpayer is incorporated and liable to tax in the UAE, it is eligible for the India-UAE tax treaty benefit
ITO v. Martrade Gulf Logistics FZCO-UAE (ITA Nos. 7 to 9/Rjt/2011) – Taxsutra.com
11 December 2017
252 Benefit of deduction is denied as eligibility of being a ‘small scale industrial undertaking’ is lost in subsequent years even if in the initial year eligibility was satisfied – Supreme Court
DCIT v. Ace Multi Axes Systems Ltd (Civil Appeal No. 20854 of 2017) – Taxsutra.com
12 December 2017
253 Indian group company of a U.S. entity does not constitute a PE in India under the India-U.S. tax treaty
SPE Networks India Inc. v. DCIT (ITA No. 652/Mum/2014) [2017-TII-208-ITAT-MUM-INTL]
13 December 2017
254 Subsidy in the form of concession of entertainment tax to new multiplex complexes is capital in nature – Supreme Court
CIT v. Chaphalkar Brothers (Civil Appeal Nos. 6513-6514 of 2012, dated 7 December 2017) – Taxsutra.com
19 December 2017
255 Corporate/bank guarantee fees received by a foreign holding company cannot be treated as interest in view of ‘Other Income’ article under the India-U.K. tax treaty and it is taxable under the Income-tax Act
Johnson Matthey Public Ltd. Company v DCIT (ITA No.-1143/Del/2016) – Taxsutra.com
19 December 2017
256 Revision of Investment limit in Government Securities and State Development Loans for Foreign Portfolio Investors
www.sebi.gov.in 21 December 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
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257 Taxpayer’s aggregation of IT services and ITeS provided to Associated Enterprises under a single composite contract upheld
Data Core (India) Pvt. Ltd. v. ITO (ITA No. 387/Kol/2015)
22 December 2017
258 SEBI approves easing of access norms for investment by Foreign Portfolio Investor (FPIs)
https://www.sebi.gov.in
29 December 2017
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Ranga Reddy District,
Hyderabad, Telangana – 500081
Tel: +91 40 6111 6000
Fax: +91 40 6111 6799
Jaipur
Regus Radiant Centres Pvt Ltd.,
Level 6, Jaipur Centre Mall,
B2 By pass Tonk Road
Jaipur, Rajasthan, 302018.
Tel: +91 141 - 7103224
Kochi
Syama Business Center
3rd Floor, NH By Pass Road,
Vytilla, Kochi – 682019
Tel: +91 484 302 7000
Fax: +91 484 302 7001
Kolkata
Unit No. 603 – 604,
6th Floor, Tower – 1,
Godrej Waterside,
Sector – V, Salt Lake,
Kolkata – 700 091
Tel: +91 33 4403 4000
Fax: +91 33 4403 4199
Mumbai
Lodha Excelus, Apollo Mills
N. M. Joshi Marg
Mahalaxmi, Mumbai – 400 011
Tel: +91 22 3989 6000
Fax: +91 22 3983 6000
Noida
Unit No. 501, 5th Floor,
Advant Navis Business Park
Tower-B, Plot# 7, Sector 142,
Expressway Noida, Gautam Budh Nagar,
Noida – 201305
Tel: +91 0120 386 8000
Fax: +91 0120 386 8999
Pune
9th floor, Business Plaza,
Westin Hotel Campus, 36/3-B,
Koregaon Park Annex, Mundhwa Road,
Ghorpadi, Pune – 411001
Tel: +91 20 6747 7000
Fax: +91 20 6747 7100
Vadodara
iPlex India Private Limited,
1st floor office space, No. 1004,
Vadodara Hyper, Dr. V S Marg
Alkapuri, Vadodara – 390 007
Tel: +91 0265 235 1085/232 2607/232 2672
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