Orbitax Tax News & Alerts
India's Tax news & updates from Orbitax and partners
India Tax News
Indian Supreme Court decision on transaction value between related parties
Indian decision finds payments for use of satellite transponder not "royalty"
Ruling on taxability of non-resident with captive BPOs to be appealed
Indian ruling that commission paid to non-residents are taxable in India even if the services are provided outside India
Indian decision on applicability of tax treaty or domestic tax rate for different income streams
Indian ruling on taxability of payments for information under India-UK tax treaty
Indian decision on applicability of non-discrimination article in India-Korea (Rep.) tax treaty
Indian decision on applicable tax rate for down payment for transfer of technical know-how
Indian decision that fees for (interior) designs or drawings do not constitute technical service fees or royalty under India-Singapore tax treaty
Tribunal ruling on taxation of foreign telecasting company in India
Treaty between India and Singapore – Singapore seeks further amendments re CGT
Budget for 2006/07
Ruling on taxability of non-residents with captive BPOs
Protocol between Japan and India signed
Indian decision on applicability of India-UAE treaty (re shipping income) to UAE residents
Protocol between India and Italy – details
Indian ruling that US pension fund does not qualify for treaty benefits
National Tax Tribunal takes effect
Protocol between India and Italy signed
Decision on deductibility of interest paid by Indian branch to Netherlands head office
Advance ruling on segregation of technical service fees under tax treaties
On 3 November 2005 the Indian Union Cabinet gave its approval for the signing of a protocol amending the India-Italy income tax treaty of 19 February 1993. Further details of the protocol will be reported subsequently.
The Japanese Ministry of Finance announced on 31 October 2005 that Japan and India have agreed to revise their tax treaty Basically, both countries agreed to partially revise the existing treaty as follows:
Taxation of income "Foreign Institutional Investors" being reviewed
Indian Tribunal rules domestic/foreign company classification under Indian tax legislation does not contravene non-discrimination clause of India-France treaty
It has been reported that Kuwait and Saudi Arabia, which are respectively negotiating tax treaties with India, are seeking to have capital gains arising from the sale/transfer of moveable property taxed in the state of residence. This request for residence-based taxation for these capital gains appears to stem from the Comprehensive Economic Cooperation Agreement (CEPA) between India and Singapore that was signed on 29 June 2005. The CEPA includes a protocol to the existing India-Singapore tax treaty, whereby Article 13 was amended to provide that capital gains on sale of shares derived by a resident of one of the states will only be taxable in the resident country. Accordingly, capital gains arising to a Singaporean resident on sale of shares in Indian companies would not be liable to tax in India.
Tribunal rules that fees for credit ratings services taxable as "royalty"
On 12 July 2005 India announced that negotiations are underway for a first-time tax treaty between India and Luxembourg.
India and Singapore signed a protocol dated 29 June 2005. This protocol will form part of the India-Singapore tax treaty dated 24 January 1994, and will enter into force and be effective as from 1 August 2005.
The tax treaty on income of 3 November 2003, entered into force on 4 March 2005, and will be effective as from 1 January 2006 in Hungary and 1 April 2006 in India. It will replace the tax treaty of 30 October 1986.
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